Technical analysis is concerned mainly with recent movements in the foreign exchange market. So the past is illuminated very strong to draw conclusions about future events could then. Within the technical analysis, the analyst deals with all past volume and price movements and their effects. Coming together is enough information, the analyst is able to create a chart on which he represents all movements clear. The technical analyst pursued as opposed to fundamental analysts, not the goal, a general overview of trends and opportunities to create, but limited .
Is in his analysis more on areas that are important to him, so courses in which he wants to invest in the future there are three basic pillars, which is based on technical analysis: 1st The market price contains all the important information: This means, that are contained within the applicable current exchange rate, all sorts of influences. The main influences are political or social factors, supply and demand and of course the investor sentiment. Here, the analyst is primarily due to the price movements in themselves and not on the origins of why a particular movement has taken place. 2nd Arising from exchange rate movements Trends: Based on a technical analysis or pattern can be found in the technical language “patterns” that occurred already in the entire history of the Forex and which always attracted a similar trend after themselves.
So the analyst discovers such a well-known and widely accepted model, especially, it is very likely that the pattern will follow a similar pattern, as it is for example 20 years ago already been the case. There are a variety of patterns that repeat themselves constantly, which can then be permanently used again for their own profit, from which springs from the third point. 3rd The repetition of the story: Within the last 100 years have discovered many patterns that repeat themselves. Many investors who trade for several decades in the Forex market have since been recorded huge profits because they have seen the pattern itself, and from them ever again have new and old can draw conclusions. Of course this can also be a forex beginner, but the matter should first deal fundamentally. Make sure to read everything on the fundamental analysis …