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Technical analysis is one of the systems investment, designed to develop strategies for trading techniques. Analysts who use technical analysis exploring quantitative data movement in foreign currency exchange rates in order to determine where and how to continue the movement of prices in the future. In technical analysis as a tool to identify graphical models, templates and apply trends charts and graphs. For this purpose, as are those price charts, and graphs that are calculated based on the price movements of the so-called indicators. Forex indicators are essentially mathematical function or set of functions) that handles motion data of prices and volumes of transactions on the market. As a rule, the results of these calculations are presented in graphical form – graphs, charts, key levels.
Conditionally they can be divided into trend-following indicators and oscillators.
Trend indicators are used to determine trend direction and entry points into the market. They are designed for use in active, dynamic markets. Among them the greatest distribution has received numerous indicators of the group of Moving Averages (Moving Averages), index average directional movement (Average Directional Movement Index ADX), parabolic SAR (Parabolic Stop and Reverse), Bollinger bands (Bollinger bands). But this is only the most famous of a large group of trend indicators.
Oscillators are used to determine the moments of change or the emergence of the trend. The word oscillator is derived from the Latin word "fluctuations". The basis of their application lies the notion that any oscillatory system tends to equilibrium. Oscillators work well in stagnant, passive markets, and often give false positives when volatility is high. The most famous among them are the relative strength index (Relative strength Index, RSI), stochastic oscillator (Stohastic), MACD histogram (Moving Average Convergence/Divergence).By the way, the last oscillator is based on moving averages and bears features of trend indicators.
It should be noted that indicators have now created a lot, it is a constantly developing field of Forex trading. Computer use may prevent the trailer from routine calculations values of indicators, and every modern program for online trading Forex and not only have in their Arsenal a wide range of established indicators and oscillators. The more that this set can be expanded at the expense of the "user" of indicators that are widely available on the Internet. Section "indicators" exists on our website. But to get the full dosta in this section You will have to go procedurereturn and/or login to the site."
Although technical analysis is related and complementary to fundamental analysis, rather, it "focuses on the effects of market movements and not their causes. Investors using strategies based on the use of technical analysis, analyze the price movement "in the past" to determine what might happen to her in the future." Technical analysis is unlikely to be useful for those who prefer to use a purely intuitive methods as your trading strategy.But the best results are making traders using an integrated approach, "fundamental data and market instincts, and do not limit your view of the market alone, "mathematics" of technical analysis.
On our website in the "library" section You will be able to pick out literature that describes the techniques and reveals the secrets of technical analysis.
I should add that the methods of technical analysis do not is the prerogative of the Forex market, they are common and have been successfully applied in other types of market trading. Technical analysis as an independent discipline began long before the formation of Forex in its current form. But with the growth of the Forex it gained momentum in its development and has reached impressive levels.
|Category: Forex | Added by: (29.10.2017)