Xtream Education: Learn More Earn More

Discussion in 'Forex Education' started by xtreamforex, Mar 29, 2017.

  1. xtreamforex

    xtreamforex Active Trader

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    Best way to Identify the Forex Market future movement


    Technical analysis is the science or skill of forecasting of the future movements of the price using the past movements and data.

    Obviously, the past movements cannot guarantee the future movements and so technical analysis is not a hundred percent accurate and surefire forecasting but if you learn the technical analysis properly, you can make more correct predictions and so you will be in profit at the end.

    Technical analysis rules, techniques and tools are 99% the same in the stock and forex market. So if you learn technical analysis, you can use it both in stock and forex market.

    It is impossible to cover everything about the technical analysis in one article. So here I just try to talk about technical analysis in general but write more detailed articles about it.

    If you read my daily forex trading market technical analysis reports, you will see that technical analysis is the main thing that I use in the market analysis.

    I do not use indicators in the long time frames like 4 hours, daily and weekly charts because I believe indicators are too delayed to be used on long time frames. They show the signals far after a breakout and a big move happens. So it can be too late to enter to any trade.

    In technical analysis we work on the price charts. The price chart is a two dimensional chart. The vertical axis shows the price and the horizontal axis shows the time.

    We have different kinds of price charts:

    1- Tick chart
    2- Line chart
    3- Candlestick chart
    4- Bar chart
    5- Heikin-Ashi chart
    6- Kagi chart
    7- Renko chart
    8- Point & Figure Chart

    There are some other kinds of charts but as they are not common, I have not mentioned them in the above list. Even Heikin Ashi, Kagi, Renko and Point & Figure are not very common too but as I like to talk about them because I believe some of you will become interested in using them.

    Line, candlestick and Bar charts are very common and I think candlestick chart is the most common chart and it becomes more popular everyday.

    Technical analysis is based on the analysis of the charts. Finding the trends, support and resistance levels and also consolidations like triangles, wedges, pennants, double and triple tops and bottoms, head and shoulders and … can be done through the technical analysis rules and when you can achieve to find these things on your charts, you will be able to predict the next direction and movement and so you can take the proper position.

    Technical analysis becomes even more helpful and valuable when you enrich the result with some other tools like candlesticks and Fibonacci levels. You can do your technical analysis on a simple line chart. It will not make any difference because you will find the same trends and formations but when you do in on a candlestick chart and pay enough attention to the candlesticks’ signals, your analysis will be stronger.




    Read More on : https://www.xtreamforex.com/Education/analyze-forex-trading-market/
     
    Last edited by a moderator: Mar 30, 2017
  2. myfxpt

    myfxpt Master Trader

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    Actually, and this is just my opinion, technical analysis cannot be used to predict or forecast future price movements. Its job is to show "what" is happening and "when" it is occurring. Fundamental analysis is used to forecast probable future price movements through analysis of various economic inputs like interest rates, employment, GDP, trade, geopolitical events, and commodity prices. Fundamentals help you understand "what" should happen in the future and "why"; technical analysis shows you "when" it is happening.
     
  3. Ary Barroso

    Ary Barroso Trader

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    To be honest, when I was a new Forex trader then I thought technical analysis means only indicator based trading (that was actually wrong concept)! Chart analysis is the key point of technical analysis and according to my experience; chart analysis is much useful than indicator based trading!
     

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