Why the need for technical analysis on forex.
What is it needed for
Technical analysis forex.
Technical analysis in the forex is a fundamental
component of successful trading, it is the meringue it happens drawing
forecasts the behavior of exchange rates.
That distinguishes it from trading on the forex casino games, because there exists no effective
way to predict the result and remains naedyatsya on luck alone.
Reliability of projections made on the basis
competently performed technical analysis sometimes exceeds 80%, and that
It means 8 out of 10 your open trades will bring profit and only 2 losses.
The main task of those. analysis is to determine
the trend, in fact trend trading can bring the greatest
profit is quite important to know which way the price moves and how long it
will continue its movement. In order to make the calculations less
tedious download trend indicator.
The second index value, which measures the analysis, it
the likelihood of a reversal from him will depend on how much time you
close your order. After all, some trends can last and more than 50 points,
and it will be quite a shame if you close your trade early and not dopoluchite
desired profit. Thus, this figure can be used as a definition
points beginning of a new trend and opening transactions in the appropriate direction. For
automation of the process in this case serve as indicators of a turn.
Also, when using FX Trade on many different levels and channels
and these two procedures is quite interlinked as often
levels line just act as a price channel boundaries. Data
resulting from the construction of channels used in a variety of pretty
effective strategies – in the sample, a reversal. In order to reduce the time
the calculation of the required points it is recommended to use indicators – levels and channels. These software tools will take the
itself all the mechanical work according to the calculations.
Additionally there is a third indicator, which is widely used for
technical methods, an assessment of market conditions. After all, the state in
which the market often depends on further developments. TO
example, if the stock exchange made a large number of transactions for the purchase and the market
moved to an overbought condition, it is likely traders
gradually begin to close their transactions, thereby increasing the supply of currency
and as a consequence of the reduction of its course.
As auxiliary tools for calculations in this case
an indicator of market conditions.
As you can see, the technical analysis of the forex market is simply not replaceable for
successful trade for even more effective trading operations
it is recommended to use it in conjunction with fundamental analysis.
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