Forex, a jungle that lead me to my dream

ONE STEP CLOSER TO THE FOREX

2 methods to see the trend direction is used as the basis of decision making in trading foreign exchange

1. Technical Analysis
Analysis is a technical analysis of price movements of currencies based on the price movement of the currency itself in the past. Movements in the currency technical analysis is described and calculated through mathematical / applied statistics and views from the graph / chart, this is the reason why the user is called technical analysis' chartist '

There are 3 basic principles of technical analysis in mind:

a) Market Price Discount Everything
Price that reflected in the price chart or graph has been describing all the factors that influence the market. All things that happen that can affect both the rational-and irrational-is reflected in the price of the benchmark. the value of a currency is determined by the strength of demand and supply is reflected in the currency exchange rate. The analyst does not pay attention to what causes the changes so that demand and supply-for example, due to inflation, but only care about what happens to the price. If demand increases and decreases or remains bidding, the price will increase, and will occur if the condition of the turn.

b) Price Moves In Trend
price movements don't move randomly but in an ongoing pattern (trend) and will continue to progress until there is signs that this pattern stops and the movement direction of turn.This trend will continue, until the price movement slowed and gave the signal that prices will turn, before finally moving to rather the direction.Here akan start new trends, movement and trends a series of events will repeat again.

c)History Repeats It Self
There is a strong tendency that the behavior of the investors will repeat the same action if the market conditions that occurred are simmiliar.This patern is also used bye chartists to predict price movement.

The most important in technical analysis were graphs or charts because they were used by technical analysis and became of the object.


to be continue....