Graphical analysis of the Forex market and its foundations

You already know that in order to make a profit on Forex, you need to correctly identify trends and keep abreast of market conditions. This helps us to determine the graphical Forex market analysis.

Graphical analysis of the Forex market is used for a long time. Even before the advent of information technology, analytics features of the dynamics of the hand of the price, and then analyzed the changes. This graphic visualization allows to predict the direction of the trend line.

The basis of the theory of graphical analysis of the Forex market is an opinion that the Forex market is driven by psychology, that does not change for many years. It is for this reason, models that traders have chosen 15 years ago, will be relevant to the present day. The subject of technical analysis is a graph of price movements. It is dynamic and is in constant fluctuation in either direction. If you follow the history of the direction of change, it is easy enough to predict the further effects of the trend, and it already allows to profit. It is worth noting that the Forex market is cyclical. To prove this, it suffices to recall the Elliott wave theory. It consists of a 5-waves are repeated.

For this reason, a trader who uses in his trade Forex graphical analysis of the market, it is likely to predict market direction. All currency quotes are repeated and, on this basis, a trader can predict the price.

The basic tools of graphic analysis of the Forex market - is support and resistance levels. As additional tools, you can still add and continue turning figure. You would think that everything is very simple? Of course, yes, but it is simple and is the key to success.

Useful information about the graphical analysis of the Forex market

Thus, the main essence of the graphical analysis of the Forex market - show price changes. If we compare the graphical analysis of the Forex market with a mathematical, it should be noted that the graphic is much easier. There are no additional calculations.

The purpose of the trader - to determine the pattern using changes.

Transactions are carried out in the currency market or for sale or for purchase. If transactions more on selling rather than to buy, the price will fall if the deals more on the purchase, the price will rise.

So summarize. The whole essence - to predict the state of the currency.

On the advantages of

• It is possible to change the time frame to compare prices fluctuations with past data;
• The ability to perform analysis of peak values. These data allow us to predict the price of the currency;
• The impact of news on the schedule. If some events are repeated, when their repetition, the cost will be, as in the last time.