How to make technical analysis in the Forex market?
In order to have a permanent income in the Forex market, and minimize their financial loss, you must be able to correctly analyze any current economic situation and make the right decisions, and fast …
To these solutions were even more true, there are several types of stock market analysis that helps both experienced and beginners only your hard way traders. Basically it is two main villa analysis.
This is a technical, which is closely associated with a variety of schedules, and the macroeconomic, which is based on the bases of the economy, and political situations in the countries whose currency is trading. Now it is clear that the majority of experienced traders and analysts suggest the use of technical analysis, which is able to provide more accurate information.
In order to create a competent technical analysis of currency in the stock market must be remembered that this type of analysis is based on three main principles.
1. The market considers all. Any Forex analyst believes that it is absolutely all the reasons that have at least some impact on the market value of the currency on the Forex (political, economic, psychological, etc.), be sure, sooner or later, will be reflected in the price of the currency. Therefore, from any analyst first of all we need a thorough in-depth study of price movements over time.
2. All the movement of prices is subject to any trends. Each trader must clearly represent yourself, that any economic situation are subject to trends or trends. The aim of technical analysis is to identify such trends at the stage of their origin, and then sell them in parallel direction.
3. The third principle is that history repeats itself, sooner or later again. Technical analysis of the situation in the forex roar inextricably linked to the study of human psychology. Many economic situations that arise on the foreign exchange market is a direct reflection of the psychology of traders (they produce more than a decade).
Based on this principle, it can be argued that if the different models for earning profits worked before, they will also be able to generate income and now (after the model – it is the same human psychology).
If you stick to these three basic principles when drawing up its technical analysis, the success is almost guaranteed …