Foreign Exchange Technical Analysis

[gabriel]

Technical Analysis used in Foreign Exchange Trading is about the price movements and finding the prevailing trend will help you become aware of the overall market direction and offer you better visibility, especially when shorter-term movements tend to give you wrong information about how market will evolve.

Technical analysis is being used for the prediction of market movements (meaning alterations in currencies prices, volumes and open interests) outgoing from the information obtained for the past and the main instruments of the technical analysis are different kinds of charts, which represent currencies price change during a certain time preceding exchange deals, as well as technical indicators.

Weekly and monthly charts are most ideally suited for identifying that longer-term trend. Once you have found the overall trend, you could select the trend of the time horizon in which you wish to trade. Thus, you could effectively buy on the dips during rising trends, and sell the rallies during downward trends.

Probably the most successful and most utilized means of making decisions and analyzing ForEx and commodities markets is Technical Analysis.

The difference between ForEx technical and ForEx fundamental analyses is that ForEx technical analysis ignores fundamental factors and is applied only to the price action of the market. In that fundamental data can often only provide a long-term forecast of exchange rate movements, ForEx technical analysis has become the primary tool to successfully analyze and trade shorter-term price movements, as well as to set profit targets and stop loss.

The latter are being obtained as a result of the mathematical processing of averaged and other characteristics of price movements.

The instruments of the technical analysis are universal and applicable to any ForEx sector, any currency and any time span.

Technical analysis is easy to compute what is important while the technical services are becoming increasingly sophisticated and reasonably priced. They are available to all the ForEx Traders independent on their trade plans, strategies applied and the time of position continuance.

Under contemporary conditions it is executed by means of computers, which is important to account that means of the electronic support become more and more sophisticated.

ForEx technical analysis primarily consists of a variety of ForEx technical studies, each of which can be interpreted to predict market direction or to generate buy and sell signals.

[tamzid92]

Technical analysis in Forex is most important thing to win trading. There are three kinds of analysis. Technical analysis, Fundamental analysis and sentimental analysis. Fundamental analysis is based on market news, sentimental analysis is based on traders mind and Technical analysis is based on Trading chart, market movements, and Trend.

So Technical analysis has an great effect on trading. I never trade with OctaFX without doing proper analysis. My broker ensures my profits and provides me all the analysis and financial news faster than ever. Therefore I can trade so easily without being worried about my trading balance. I am here to win, so I surely will.

Canldestick chart strategy, Support and Resistant strategy and using of Indicators are enough for me to make an accurate analysis. OctaFX no restriction using any kind of strategies, so I can trade as how I want.

[Haydar Ali]

Thanks for your idea. I am acquainted with maximum Forex traders prefer to trade according to technical analysis. Because, it is really hard to realize the proper meaning of Fundamental analysis. I have seen, only the expert Forex traders are follow the fundamental analysis. By the way, I am interested to learn technical as well as fundamental analysis. Though I am learning to make accurate market analysis but still I can trade successful with my broker GCI Financial. Because, my trading platform provides me fastest Forex news with reliable technical analysis. Therefore, I get enough time to take right decision in every time. I do not want to depend on only technical analysis. Because, I have seen in the news time the technical analysis is valueless.