Technical
Analysis (technical analysis) is one method of analysis or approaches that
evaluate the movement of the stock price, foreign exchange, futures contracts
(futures contract), indexes and some other financial instruments.
The technicians will conduct fundamental research on commodity price movement patterns are repetitive and predictable. Even technical analysis can also be interpreted as a major study on the price, including the amount (volume) and open position (open interest).
So in essence technical analysis is an analysis of the pattern of price movements in the past in order to predict the price movements in the future. Technical analysis is often referred to as the chartist analysis study using a graph (chart), where they hope to find a pattern of price movement so that they can exploit for profit.
In technical analysis, forex predict price movements as predict commodity price movements as analysts only looking at the charts and transaction volume alone.
BASIC PRINCIPLES OF TECHNICAL ANALYSIS
There are three principles that are used as the basis for technical analysis, namely:
1. Market Price Discounts Everything
That is all the events that could lead to turmoil on the stock exchange as a whole or the price of a country's currency as economic factors, including fundamental and political events that can not be predicted in advance like any war, earthquakes and so forth will be reflected in the price market.
2. Price Moves in Trends
That is the price of foreign exchange will continue moving in a trend. Price start moving in one direction, down or up. This trend will continue until the price movement slows down and gives a warning before turning around and moving in the opposite direction.
3. History Repeats It Self
Because technical analysis also illustrates the psychological factors of market participants, the movement of historical benchmark to predict price movements in the future. This historical pattern can be seen from time to time on the charts. These patterns have a meaning that can be interpreted to predict price movements.
The technicians will conduct fundamental research on commodity price movement patterns are repetitive and predictable. Even technical analysis can also be interpreted as a major study on the price, including the amount (volume) and open position (open interest).
So in essence technical analysis is an analysis of the pattern of price movements in the past in order to predict the price movements in the future. Technical analysis is often referred to as the chartist analysis study using a graph (chart), where they hope to find a pattern of price movement so that they can exploit for profit.
In technical analysis, forex predict price movements as predict commodity price movements as analysts only looking at the charts and transaction volume alone.
BASIC PRINCIPLES OF TECHNICAL ANALYSIS
There are three principles that are used as the basis for technical analysis, namely:
1. Market Price Discounts Everything
That is all the events that could lead to turmoil on the stock exchange as a whole or the price of a country's currency as economic factors, including fundamental and political events that can not be predicted in advance like any war, earthquakes and so forth will be reflected in the price market.
2. Price Moves in Trends
That is the price of foreign exchange will continue moving in a trend. Price start moving in one direction, down or up. This trend will continue until the price movement slows down and gives a warning before turning around and moving in the opposite direction.
3. History Repeats It Self
Because technical analysis also illustrates the psychological factors of market participants, the movement of historical benchmark to predict price movements in the future. This historical pattern can be seen from time to time on the charts. These patterns have a meaning that can be interpreted to predict price movements.
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