Chart Analyzing

We are now able to read the graph, you know that the objective of the follow-up to chart the movement of the exchange rate is trying to access signs of a trend that will become the currency and whether the currency will rise or fall on the basis of this expectation will take your decision to buy or sell currency.Of course, if you bought it predicted it would rise, and predicted it will sell if the drop.But how can you be up to the expectation?Through analysis of the chart and study it.How so?The first stores to open your graphic program, which will get him from the brokerage company that will deal with it or from another location.Determines stores the currency it wishes to follow and the time frame they want.Check the shops in the graph, and then add the lines above the graph the possibilities of using the graphic program that allows him to draw Maizhae lines and marks on the chart.Uses the program stores the graph to do some more calculations that help to understand the price movement, such as: How much is the average price during the past ten days and many others, there is a limited set of these accounts are called indicators.On the basis of what the stores from a study of price movement is made up of friendly vision for the future direction of price, and could therefore decide to sell from buy.What exactly looking shops in the graph?Several things to help him to form a vision for the movement of price and most important of these things:TrendSupport and ResistancePatternsOver buy over sellWe will now explain these things as we have more than once in this part you are in need of further reading theory and practice, and what came in this part is no more than the entrance of technical analysis helps you to get an overview and pave the way for you to further study and research.TrendWhat is the slope of the price?We mean the tendency of the price the general direction of price movement.Vatjap price of any currency to detract from one of three possibilities:Either Up word, any exchange rate tends to rise slowly.Or Down word, any exchange rate tends to decline slowly.Or Side line, any exchange rate tends to be close to the price of one.In fact, the more things that are keen traders to know is the tendency of the price, as you know, the price movement in the volatility continues to rise and then fall and then bounce back and so on, in spite of that, the price trend either up or down, if I could learn that the trend General of the currency is about to climb any currency in general tend to rise easier for you to decide to buy the currency because even if the price dropped a little, they go back up.How can I determine the price of the currency of a mile?First, we select the time frame of the coin we want to follow-upThen look at the graph, focusing on the recent period of time near the present.Drawing up trend lineIf we find that the majority of candles on the rise and the lowest price for each time period is rising gradually with time, higher lows, it means that the price tends to rise.We draw the line connecting the most caudal candles so that it does not come down any candle between them.This is called the Line Up trend line.Can you say about this line: "that the currency Otabaha escalate candles at each period, although it landed occasionally, but not exceeding in the landing line drawn upward."On the basis of the hypothesis of constant price tendency, we assume that if the exchange rate fell and became close to the line it will return a tendency to rise.So when watching the movement of currency and we find that the price has started to decline until it became close to the rising trend line that we can we buy the currency because we expect it will rise after that where we can sell them later at a higher price than the purchase price.Remains the assumption that the currency will continue to rise in until Braking trend line .. Where they can then reflect the currency movement and turn into decline.
 This is the basic principle of the tendency of price discovery and the method and way of drawing the line, which is expressed and as you can see it just by looking at the issue appears normal and does not need any experience or special expertise.
 Despite the clarity of the way the discovery of a mile price but that the knowledge of a mile rate of currency may not be as easily, so you may monitor the currency on the basis of time and transfer it the euro and find that the price tends to rise but when monitored on the basis of today find their price tends to drop. .!!This may mean that the rise in the euro over the past few hours, may be temporarily increase the daily trend has tended to fall.Therefore, the currency Long term trend may start from several weeks to several months.
  And Medium term trend starts from a few days to several weeks.Short term trend and starts from a few hours to several days.Which one would the tendency is the real price?Are all true, issue based on the "corner", which consider the example, traders who want to open the package and close within a few hours and get the profits are limited and fast might focus on the mile price for the short term, and the traffickers who covet a significant profit might be interested in a penchant for the medium and long term ..Thus, knowledge of orientation and determine the decisions of sale and purchase on the basis of the question you need to practice and training sessions so that they can discover the best method for you and your circumstances in the trade which no one can tell him, but you are from him the discovery of the result and you will find practice and train for and found.Trend is your friendWhich is a common saying among traders in financial markets, including the currency market, which means that the best decision in buying and selling must be agreeing to the direction of Mel price trend ..If the tendency towards rising price of one currency is better to be careful to buy the currency because the upward trend and even predicted that the currency has dropped for some reason you do not sell them to you so run counter to a tendency towards price .. And vice versa for a tendency to decline.Experience has shown that the deals that the approval of the tendency towards price deals are the most successful and least risk.The tendency upward reason to buy (on sale for the yen and the franc, and this does not mean we Anaaks price tendency, because the rise of drawing in the yen and the franc is the tendency towards a decline in the yen or the franc, the decision is not a sale and purchase).And tilt downward reason to sell (to buy for the yen and the franc).You should be familiar with the exchange rate and a tendency to take the decision to agree with its direction.As you can see, the principle of a mile price trend is one of the most important principles upon which to anticipate the future movement of prices is not in the currency market, according to Yale in all financial markets.We shall now proceed to another principle of the principles of analysis of the chart.Support and ResistanceTwo of the most important concepts of technical analysis is the most important thing is looking for stores in the graph and two of the most visible once quick look at the graph of the currency that you can learn the points of resistance and support for this currency.What are the points of resistance and support?Resistance: is the price that is hard on the currency to rise above it.The currency may begin to rise an hour behind the clock and increasingly expensive and consistently, but when you reach a certain price begins to drop again and then rise again and when you reach for the same price the former belonging to lower and so many times and for several days, the higher the price of the currency and arrived at this price returned and decreased once again, notes that it is difficult for the currency to exceed this price, this price is called price resistance, which prevents a price - resistant - the currency to rise above it. And points of resistance can easily see when you check in the graph of the coin.Venqtp resistance is the price at which the demand for currency is less than an offer, does not mean that the price can not rise above the resistance point, but may become, but before doing so have been dropped by several times, and whenever the number of times that he could not price that exceeds the point of resistance the more it meant that the point of resistance was the strongest.Why is it important to discover the point of resistance?When you know the price when it rises and reaches a certain price and then come back and decline means that when you see that the price of the currency was close from the point of resistance you expect the price to come back and decline thereafter, when the price reaches a point of resistance will sell the currency at this price you expect to fall if dropped actually will buy again.Support: is the price that is hard on the currency to fall below.The low price of a currency hour behind the hour, but when the price reaches a certain point back and rise again, and repeated it several times, we call this point a point support that is, they point that "support" price and prevent it from falling over them, which indicates that the currency when they go down to reach for the price of support is increasing demand by a lot of people and become unwilling to buy at this price, it does not mean that the price can not fall on a point of support, but means that the rate is finding an obstacle to further decline when the price reaches a point of support, and whenever the number of times that price could not be reduced on a point of support the more it means that the point of support was the strongest.There are a lot of tools that you can use in charts and you'll get from a brokerage firm for free or for a monthly subscription, enables these tools to draw lines and write notes and change the colors and zoom in and removed a lot of other tools that help you analyze the chart format that suits you and relieves .There will be guidance and instructions to help you do this, and in any case the program of work is graphic does not need any special skills, but is available for all and a little practice you will find that dealing with a very simple matter.How important is the discovery of points of support?When the price drops and nearing the point of support is likely that he will return to rise again, so when the exchange rate at the point of support we can buy the currency because we expect that the price will rise after that.Currencies direct and indirect againIt is very important to know that the orders for the yen and Swiss franc are the opposite orders of the euro and the pound.We have a basic general rule:In the euro sterling OoganipCandles high in the graph refers to the high price of the euro or pound.Drop candles in the graph refers to the low price of the euro or pound.In the yen and Swiss francCandles high in the graph refers to the depreciation of the yen or the franc.The low candle in the graph refers to the high price of the yen or the franc.From here you can learn how to deal in the case of the approach of the currency of the line of support or resistance, you can depend on the following rule:General ruleLine resistance: is the line which limits the candles - or bars - in the graph from the top and putting her to ascend more.The support line is: is the line which limits the candles in the graph from the bottom and putting her on the landing more.When the candles touch the line resistance is expected to drop down so:Currencies directWe sell the currency when it approached the line of resistance.Currency indirectWe buy the currency when it approached the line of resistance.When the candles touch the support line is expected to rise to the top so:Currencies directWe buy the currency when it approached the line support.Currency indirectWe sell the currency when it approached the line support.PatternsA result of the ongoing follow-up by traders and analysts, economists at the graph of the movement of exchange rates, equities and commodities different kinds for decades was the discovery of a note, is that the price in the graph have forms stable during movement, and that each time repeated these forms, the price movements are similar. Note It is very important because the stores when he sees that one of these forms began Baltkon in the graph, it would be expected that the price will move in the future in the same direction when a move by the same form in the past.It is worth mentioning that these shapes appear to change as a sign of either the general direction of the movement of currency or for the continuation of the direction of currency movement.There are two basic types of these formats:Forms of change in the direction Reversal patternsIt forms when they appear because the signal-mile rate may begin a reversal. If the tendency of a currency price is rising, and while we continue to chart the price movement noticed constitute one of these forms are often a sign that the currency will reflect a tendency from high to low.It is the shapes that appear on the graph to mark a reflection of price movement:Head and shoulders Head & shouldersIt is a form composed as follows: The price continues to rise to that amount to a given call point "A" and then begins to price in the fall to be up to a certain point of the call point "b" and then return the price to rise to a higher limit from the point of "A" to arrive at the point We call it "C" and then back down to the same level as previous fall at the point "B" to come back and rise again, bringing the price reduction equal to - almost - to the point "A" at the point of "d" and then back down again to a point equivalent to the level of price point "B" Thus, the price has increased 3 times higher in the second time both times higher than the other two forming a shape similar to the head and shoulders on both sides. Is called the line that the lower the price rises to come back and "line of Aang" nick line.
 Head and shoulders Mekosan Invert head & shouldersThe same as the previous format, but in reverse, where the currency is in decline, and then changed direction to be high after the figureQmtan Double topIt is a form composed as follows: the price rise until it reaches a particular price for the call point "A" and then come back and go down to price - the point - call it "B" and then return to rise again until it reaches the same price as the previous at the point of "A" and then come back down again component has a form similar to Mount Qmtan. As you can see in the figure and also notes the price was a tendency to rise and then the fact that the previous format change its downward trend, so is the emergence of this form in the graph mark the potential to change the direction of the price.
 And form the opposite of the so-called summits Qain Double bottomWhere the price in lower rather than higher then up to the point and re-rise and then fall back again to the same point and then return to the previous height of forming the same format as before, but in reverse. The price quoted be low, and then after a Qain turns to rise, so is the change of direction.Triple top three peaksIt is similar as before, but the price touches the price of the summit back three times instead of twice a component of three peaks, and then come back and down, changing its direction.Three Triple bottoms bottomsIs the opposite of the previous format, where the price low, and then be three beds to reflect the upward trendForms to continue in the direction Continuation patternsIt forms when they receive a signal that the price tendency may continue in the same direction. If the price tendency of a currency in decline and while we continue to chart the price movement noticed constitute one of these forms are often a sign that the currency will continue to be a tendency in the same direction and will remain in decline.It is the shapes that appear on the graph mark the persistence of price movement:Triangle TriangleIt is a form composed as follows: the price rise until it reaches a particular price and then in periods Alahakp limited to price in the range narrows gradually forming a shape like a triangle to come back later to rise. After showing that this figure continues to rise in price or if it appeared after the decline continues to decline after the emergence of the triangle, so this is a form of continuing in the directionFlag FlagIt is a form similar to the triangle, but instead be a form similar to the triangle shape is closer to the flag and then continue to price in the direction of the former is therefore a form of continuing in the direction.
 There are other forms and characteristics of each of them but the forms that we have mentioned is the most famousHow to benefit from the shapes in currency trading?I also learned the shops in his analysis of the price movement of a currency does much of the research in the graph, looking for any signal would enable him to predict the future movement of the exchange rate, which on the basis of this expectation will take the decision to sell or purchase, and among the things that are looking for is Aalo_kal.Note Aalo_kal and may require some training session and practice may be the most important benefits of the graph linear liner chart is to assist in a note patterns more clearly.It should be noted that the forms that enable you to finding the proper price action are the forms that are discovered in the relatively long time frame. Any weekly and daily in particular and in some cases under an hour.The patterns are discovered Otina follow-up chart within Allotar least at the time such as half an hour and ten minutes .. Etc. They are mostly for not dependent on them.
 Would be interested to learn that the analysis using the forms can not be separate from the methods of analysis other is not enough to notice the form of these formats in the chart until you decide to buy and sell, but there must be a leftover from a combination of signals that give them the shapes and signs extrapolated of other methods of analysis such as support and resistance and the tendency of price and indicators.There are a lot of experienced traders who have not paid any method of analysis forms, especially when the importance of traders who open and close the transaction within a short period not to exceed hours analytical approach using formats more suitable for long periods that may stretch for days and weeks.We advise you to start learning analysis of the chart that the conduct of the use of the forms in the analysis because the disclosure forms require some experience, so we believe that using other methods in the analysis Camille price points and support and resistance first and then to gain something from the experience that you can add to these methods method analysis using shapes Patterns.Also, what we have said from the analysis using the forms not more than a quick overview of you to pave the way for a deeper study, where each form of the earlier forms of certain features to talk about the boundaries of this subject.