Technical Analysis Forex Trading

After talkinng about concept forex trading. Unlike fundamental analysis, technical analysis went on the premise that price movements can be predicted from the past. That is, with a row of data in the past price movements, we can predict the future movement. Something that really does not make sense according to fundamental analysts.

Method of Technical Analysis is a method for analyzing past data from the market price data, volume and open interest unntuk predict price trends in the period will dating.Data-data is then presented in the form of charting (GRAPHIC).

Basic calculations in technical analysis is a mathematical fact that most of them are statistical and the science of chaos theory (pattern recognition). So it took approach exactly. Thus the results obtained can be a number of exact and definite. Something that can not be provided by fundamental analysis. Some technical analysts even said so: "Technical analysis trading is a cheat."

If so, is better than technical analysis, fundamental analysis? No. Remember, that the fundamental news that gave birth to fundamental analysis is the real mover of the market, rather than technical analysis. According BelajarForex, each has its pros and cons of each. Technical analysis is known as exact factors and can be applied to any method of trading (day trading, weekly and even monthly to yearly). Known for his fundamental analysis to predict significant and sudden movements that are caused by the release of news that matters. Here we sarikan in table form:

Weakness in Fundamental Analysis Technical Analysis Weakness in
It takes time to obtain information. Requires a lot of data to support accurate prediction.
Often is subjective because it involves a lot of people's opinions. Highly dependent on the ability chartist. Each chartist have different methods and each one is not necessarily suitable for each other.
More suitable to be applied in long term trading period.
Difficult to apply in an inefficient market.

Back around the technical analysis, as in the diagram shown by BelajarForex, technical analysis is divided into 3 major indicators, Fibonacci sequences, and the Elliot Wave Trading. Indicators are a series of formulas that were created based on the science of statistics and used to predict trends, point support, ressistance or overbought and oversold. While the Fibonacci sequence and Elliott wave analysis based on pattern recognition based on number patterns and shapes of existing graph.

There are more than 50 types of indicators you can learn in technical analysis, 11 Elliott wave patterns of the standard (not including derivatives trading, developed an individual or a research lab or other specific communities). While basing the calculations on the Fibonacci sequence Fibonacci series that is widely used to calculate the movement of random objects that have a certain pattern (such as currency price movement.)

Concept Forex Trading

Play forex trading without knowing the analysis means that we do gambling therein. And obviously, with gambling then it will lead to losses. Unfortunately events like this not only experienced a few new players in the world of forex. Some have experienced loss of tens to hundreds of millions just realized without a good analysis of the forex trading with gambling.

That is why BelajarForex trying stressed the importance of analysis in forex trading. Without it, do not expect we will benefit in the long term. If any benefit, usually because of luck and will not last long. In a matter of weeks to months, all our funds are usually exhausted because of the lack of knowledge analysis.

So it can be concluded that knowing the analysis of price movements is an absolute known by the players forex.