The core of this technical analysis is to observe price movement. That’s about it. technical analysis
Then how do we analyze price movements? Well, it’s actually quite easy. The trick is to look at the history of price movement and of data already available, we can predict how the movement of the currency pair and where he is going to move. is that the simple technical analysis ?? is it?
The principle of this technical analysis is the belief that “history will always repeat.”
The situation may be different, but the price movement will always be the same. So any Technical Analysts will always find the same patterns that form before. From there they will have an idea of how prices will move.
The main weapon of the technical analysis is a graph (chart – that’s why they called the chartist). Through the chart this is they can look at the trends that are taking place, a span of trend, the volume of transactions and the psychological levels. If you have been able to know 4 things, of course huge profits soon will be gushing to pay you:
1. Trend in progress
2. Transaction Volume
3. Level the psychological (support and resistance)
4. The period of time that happens.
Yup, that’s it. Indeed the purpose of the chartist is predicted to four of these things. But now the question is how accurate technical analysis ability to predict the price? Well that’s what indeed must be a continuous exercise in each day. There is no one perfect method both fundamental as well as technical analysis. Experience and self holds the central role here.
There are other things you need to know here, namely: technical analysis is identical to the graph. Technical analysts believe other than as a map, graph price movement data logger is a trading history. From there the analyst gets “leaked” about price movements.
“Isn’t it true that if you see the same graph, we will have the results of the analysis of the same?”
Oh, no comrade. Although we analyze graphs of the same, even in one room, our analysis will be different. Because technical analysis is HIGHLY subjective. Same like two different people who see an elephant from front and back