Technical analysis

The technical analysis is primarily concerned with recent movements in the currency market. So the past is illuminated very strongly to then draw conclusions about future events. Within the technical analysis, the analyst is concerned with all past volume and price movements and their impact. Get enough information together, the analyst is able to create a chart on which he represents all movements clearly.

The technical analyst pursued as opposed to fundamental analysts do not aim to create a general overview of options and trends, but is limited in its analysis more on areas that are important to him, that is, classes, in which he wants to invest in the future.

There are three basic pillars, which is based on the technical analysis:

First The market price contains all the important information:
This means that the respective current exchange rate all possible influences are included. The most important influences are political or social factors, supply and demand, and of course the investor sentiment. Here, the analyst goes mainly on the price action itself and not on the origins of why a particular move has taken place.

Second From price movements arise trends:
A technical analysis pattern or in technical language "patterns" can be detected, which occurred already in the entire history of Forex and what always attracted a similar development by itself. Discovered the analyst so such a well-known and widely accepted, especially patterns, it is very likely that a similar development follow the pattern, as it is, for example, 20 years ago already been the case. There are a variety of patterns that repeat themselves constantly, which therefore can always be used again for their own profit, from which arises the third point.

Third The repetition of the story:
Within the last 100 years many patterns have been discovered that repeat themselves again. Many investors who trade for several decades in the Forex market have since been reported huge profits because they have seen the pattern itself, and out of them again and again have new and old can draw conclusions. Of course, this can also be a forex beginner, but the matter should first deal fundamentally.