Traders in the currency market never take positions without a clear and detailed forecast of the behavior of quotations in the future a certain period of time. How do they make this prediction?
C (aggregate method is used mainly) technical analysis of the forex market or by means of the fundamental. These two types of analysis of the current situation is strikingly different from each other.
Technical analysis - examines the historical behavior of the market, using its own language and set of terms, chart patterns and shapes, techniques and methods. Fundamental, in turn, is based on the external political and economic situation in the world.
Technical analysis for beginners is rather complicated and incomprehensible because of its ically mathematical and scientific. However, its effectiveness is not in doubt. Since there are a few immutable tenets that make this kind of prediction is so important. we met these postulates.
Technical analysis of the currency market takes into account all the factors
That is, the behavior of the price - is the result. The result is based on a combination of factors that affect this result.Thus, the price is already moving, taking into account the totality of the factors impacting on it, including many of the fundamental economic data.
The market is cyclical
What does this postulate? It reveals the essence of the technical analysis of the forex market. In some historical moments, the situation is identical to the current already has. And the price behaved in a similar way. Hence, it suffices to find such a historical moment and see how the market behaved. Even considering the fact unique news release this method works. After all, it is based on human psychology.
People behave in a certain way before, and formed their actions a certain price movement. And in this situation, people are likely to behave in the same way and again form an identical price movement. And this movement can be predicted, open favorable to the position and make a profit.
The market is identical at different scales
That is, the one figure can be used in different time intervals. If a technical analysis of the currency market method worked for a period in the day, there is a good chance of that, other things being equal, he will repeat the maneuver in the run the week, or quarter hour.
Even minute chart can copy the entire week, of course on a different scale. This technical analysis for beginners and useful, their strategies can be applied in virtually any timeframe. Of course, if you take into account all the external factors and the forecast adjusted with their account.
At the end of our reflection, we can say that the success of the market as a trader, technical analysis of the forex market is a must. Even if you entirely rely on the calendar of economic events, elements of technical analysis will always be the case.