Technical analysis

Forex technical analysis

It comes down to identifying the most opportune moment to enter the market in order to “buy low, sell high” – it may be finding a trend reversal point, determining whether its direction is suitable for entering the market at the moment, or, for example, identifying potential opportunities to make money even during a flat period. It is possible to earn on an uptrend or bullish trend as well as on a temporary reversal (correction).
In case of an unexpected price reversal against the open trades the trader has to determine at least an approximate time of closing the trades with profit. They use manual closing, Stop Loss (fixing of losses) and Take Profit (profit) orders. The search for the closing point is carried out on the basis of the same rules of technical analysis.

Basic rules of technical analysis

For ease of use of technical analysis, the trading period from the start of trading on Monday to its end on Friday is divided into equal time frames. They make it possible to analyze the most important parameters.
They include the price at the opening/closing of the period, the price minimum/maximum, and volumes.The basic rules of technical analysis are the basis of almost any trading strategy.

Prices include everything

They are influenced by absolutely any political or economic factor (sometimes even a climatic one). The degree of influence depends on the importance for the country whose currency is being traded

Subjecting prices to trends

Currency values are constantly changing. As a result, currency pairs rise and fall in value. During certain periods there may be a flat – a time of uncertainty, when the price does not change much over time

History is repeating itself

Trend reverse, flat market conditions are observed at the same price levels. Once a trend can repeat itself many times, which traders use in their trading systems