• 5 years ago
Understanding Forex market Analysis
If you want to learn more, get free system plus much more,visit:
https://theforexsecret.com/boost-your-balance/

Technical analysis is the study of historical price action in order to identify patterns and determine probabilities of future movements in the market through the use of technical studies, indicators, and other analysis tools.

Technical analysis boils down to two things:

identifying trend
identifying support/resistance through the use of price charts and/or time frames
Markets can only do three things: move up, down, or sideways.

Prices typically move in a zigzag fashion, and as a result, price action has only two states:

Range – when prices zigzag sideways
Trend – prices either zigzag higher (up trend, or bull trend), or prices zigzag lower (down trend, or bear trend) How can you use technical analysis?
Technical analysis is based on the theory that the markets are chaotic (no one knows for sure what will happen next), but at the same time, price action is not completely random. In other words, mathematical Chaos Theory proves that within a state of chaos there are identifiable patterns that tend to repeat.

This type of chaotic behavior is observed in nature in the form of weather forecasts. For example, most traders will admit that there are no certainties when it comes to predicting exact price movements. As a result, successful trading is not about being right or wrong: it’s all about determining probabilities and taking trades when the odds are in your favor. Part of determining probabilities involves forecasting market direction and when/where to enter into a position, but equally important is determining your risk-to-reward ratio.

Click the link to join the best trading system in the world.
https://theforexsecret.com/

Follow us our,
Telegram channel: https://t.me/theforexsecret
Facebook page : https://www.facebook.com/TheForexSecret/
Twitter: https://twitter.com/Dforexsecret
Instagram: https://www.instagram.com/dforexsecret/
Google plus: https://plus.google.com/u/0/+TheForexSecretClub

Category

📚
Learning

Recommended