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Forex charts as a tool for analysis of the international stock market
Graphical analysis is part of technical analysis. Priority graphical analysis - the study of the graphic shapes formed on forex charts due to the price movements of currency pairs.

Success in Forex will depend on the ability to anticipate, taking into account the established figures of graphical analysis, how it will develop price in the future.

For analysis mostly used these types of charts: linear, on the basis of bars or Japanese candles. Depending on personal preference and requirements, each determines how graph is more convenient to work. The time interval can be minute, hour, day, week. It is important to chart analysis forex was clearly understandable and at the same time allowed to conduct lucrative trade in the currency market.

The graphical method of analysis of the financial markets is fairly simple to use. Use this method for a very long time, because you can do only a piece of paper with the schedule of prices, a pencil and a ruler.

Due to the fact that the lines and patterns on the chart the trader deals yourself, you can talk about a certain subjectivity of the method. However, the method is effective and its use can greatly facilitate the process of market analysis. The key to success will be the understanding of principles of construction of important lines, pricing configurations, and the ability to recognize graphical model.

Among other advantages of the method of graphical analysis of financial markets it is worth noting the following. Using this method is likely to create a profitable trading system. As practice shows, regardless of the chosen time period, with different currency pairs on the Forex charts periodically appear the same graphic shape, which allows in future to take into account the likelihood of a repeat situation. This phenomenon is successfully used by supporters of the fundamental analysis (a study of the impact of economic and political factors on the formation of prices). Characterized by significant price fluctuations, is shown in the chart, will help to analyze the events of this time period. The fundamentalist can draw conclusions about the impact of what is happening in the country or in the world market changes.

Thus, the application of the method of graphical analysis allows the trader with the help of figures to charts to achieve its goal: to predict with a high degree of probability trends in the movement of the market.

Category: Forex | Added by: (29.10.2017)
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