Technical analysis

What is Technical Analysis?Is a method to study the past price movement as they are and regardless of the reasons for the expected direction for the future based on certain assumptions have proven experience in most health conditionsThe main hypotheses upon which technical analysisOf the most important of these assumptions:Prices move in TrendsIt is intended so that, although the price movement in the short term appear as if the random motion, except to say that this particular direction of movement is headed either up or down.The rising price of a currency and then back down a bit, then bounce back quickly and then fall back a bit, then to rise strongly .. Etc. .. Although it may appear this movement and as the random motion between the rise and fall, but when you check in the consideration of the longer notes that the price Trend on the rise Even though he was down at times but his height always be more and stronger Even though he was floating between the ups and downs but Is it original wholesale increase more and more.This is called the TrendUndoubtedly you are now learning the importance of this hypothesis ..It is enough to know that the inclination of currency rate on the rise for the purchase assured even if the price decreased somewhat because you know that the price has a tendency to rise and therefore will rise after a period and you will be able to sell it at a higher price and vice versa, the tendency of price to decline as sufficient to reach the conviction that the price of one currency a tendency to decrease until you sell them to buy later at a lower price.In fact, the hypothesis tendencies Price Trend Analysis is the most important assumptions that have proven experience in various health conditions.History repeats it selfThis refers to the price movement "behave" the same way that "routes the" if the circumstances were similar.It is important this hypothesis emerged in the major categories of technical analysis such as the indispensable support and resistance, patterns, and others.Trends exist until not brokenIt is intended that if the exchange rate tends to rise it will continue to rise, until the contrary is provedIf the price of currency tends to drop it will continue to decline, until the contrary is proved.Please do not feel that the horror of these terms ..!!You'll learn later that these statements are very clear and simple and a little of practice you will be able to identify it as soon as a glimpse into the price movement.How is technical analysis?Is technical analysis using charts that show price movement of a currency - or shares, or a commodity - for periods of past and so that the shops take a look at the graph for the price of one currency and then using the techniques of technical analysis will be able to anticipate how much will the price of the currency after a period of time and the basis of this expectation and will be made according to the strength intolerable shops sell these decisions or to buy the currency.Where can I get on the charts?Most brokerage firms provide a service to its customers to obtain the graph which shows the price movement of currencies, and there are plenty of sites that provide you with charts of prices of all currencies of some of these institutions provide this service for free and some for a fixed monthly subscription. This service is available mostly through a special program you download download to your computer when you can slot to choose a chart of any currency you like. These programs are based delivery of the movement of the price of each currency, first go to your device in the form of graphs make follow-up and check where the question is very simple, and must of course be connected to the Internet in order to be able to receive information immediately from the site of a brokerage firm or from the company that offers you the service fees graphs, but that were not connected to the Internet, you can learn that the previous price movement but you will not be able to get the new information only when contact with the company through the Internet.
 First we'll talk about some of the concepts that will make you understand the subject more easily and accurately.Time frameWhen watching the price movement of a currency, the primary goal of this is concentrated to answer the following question: Is the exchange rate will rise or fall? How many points will go up or down?On the basis of the answer to this question will decide either to buy or sell currency.To be able to answer this question you need to know how much was the price of this currency by the hour from now and how it was before the two and three and four hours if it is found in every hour the price of the currency rise more and more, there is if possible to continue to rise so that you can to conclude that the price of the currency could rise after a few hours and this means that the best option to buy the currency because the price rise in hours and hours behind.When studying the movement of currency rate per hour and an hour behind, we say that the time frame that weighs a price movement is a framework Hourly.May see fit to know how much the price of the currency on the previous day and the day before and the day before for a few days earlier, If you find that the price of the currency rise day after day, you can conclude that the exchange rate may continue to climb in the coming days and therefore may be the right to buy the currency.When studying the price movement on the currency behind the day, we say that the time frame that weighs a price movement is under Daily.Thus, you can study the price movement for any time you like, whether an hour or an hour behind on behind the day or week and a week behind with any degree you want.In fact, stores can study the price of any currency on the basis of:1 Minute: any you can know how much the price of the currency before minutes from now for a few minutes earlier.15 Minute: any you can know how much the price of the currency before a quarter of an hour from now Oraba several hours earlier.Hourly: any you can know how much the price of the currency before an hour from now for a few hours earlier.Daily: Any you can know how much the price of the currency before the day now for several days earlier.Weekly: any you can know how much the price of the currency before a week from now, several weeks earlier.A study of the price for other periods such as every 10 minutes or 5 minutes .. Etc.So you know that you can learn the price of any currency any time they want.Let's take for example: Suppose you want to be watching the pound per dollar .. Will open the Chart package software.Will choose a graph of the pound sterling and will choose for example to monitor the price of the pound on the basis of hourly .. Here you can learn how much the price of the pound an hour ago and before that for several hours earlier ..Suppose you find that the price of the pound fall hours behind the hour .. If there is a possibility that will continue to decline and to ensure the validity of this conclusion may choose to see the movement of the pound on a daily basis .. Here you can learn how much the price of the pound in the previous day and several days earlier to assume that you have found that the price rise on the pound behind the day ..May make you pause .. Valjnip rise every day but when you watch the price within hours find him fall, and this may make you think that the low price in the hours is a temporary reduction, because you see that the price of the pound rises every day and is permissible that he will rise today and in the coming days, The decline the current price and that you see when you control the price on the basis of time permissible to change to rise ..Please do not worry if any difficulty in the previous example Vstvhm more shortly, would be interested in what you know now that the price control on the basis of different periods of time helps you to control the price of "different angles" and this gives you a more comprehensive idea about the possible direction of price movement.