Technical analysis is appointed to analyze market movement (the movement of prices, volume and open interests) using data from the last time. Basically, the system of the past behavior of exchange rates in order to anticipate future performance. This is one of the most important tools to predict the financial markets. Such analysis is a tool commonly used to predict the participation of two centuries. The power of technical analysis tool based on the flexibility in terms of markets and the schedule rate. Can be easily Sellers, who is participating in several currencies, but its application to specialized technical expertise in the same trade in other currencies. Vendors who specialized in the trade sector can easily switch to the currency used in planning future studies, because the principles of the same technique over and over again, regardless of the market. In addition, different actors and patterns of different commercial objectives and analysis frames.Technical time is easy to calculate, which is important, and maintenance of increasingly complex and reasonablipriced.Prior this lack of technical analysis of the open market will provide sufficient signals for sale.
The basic principles of the theory of technical analysis on the basis of the following main theses Dov. 1. Price has a wide margin of market forces. On at any time, any information about the market and the strength of currency is the price. 2. Price movements and repeated history. 3. Price movements are trend followers. 4. There are three areas: primary and secondary, or less. The primary trend of three phases: the accumulation and distribution run-up/run-dovn. Dealers shrevdest accumulation phase the new position. Run-up/run-dovn on stage and finally, the vast majority of the market, "Look," a step, and jump on the train. Finally, the distribution phase, and most of the traders and profit to close position, while the public interest to delay access to commercial markets. Secondary trend can be attributed to a change in the main direction, and return to the half or third or two thirds of the primary trend. 5. Size must be confirmed this trend. 6. Trend exists, it proves that it has been strengthened. Figure 5.1. These disorders appear in the foreign exchange market bearish. Buy signals occur points A and B, when it exceeds the height of the previous currency. Sessions of the change in exchange rates have a tendency to repeat the events that took place at the same time an important basis to justify the Dove again. Session identification is a powerful tool, which can be used for a long time in the short term. At this stage, in the long run more important. Figure 5.2. Shows a series of three stages. Is called the upper cycle (C) Ridge and bottom (T) knows more. Cycle by measuring analysts. Measured amplitude and phase of the courses in time. It seems to show a lot of phases of the cycle length of the life cycle appears at the site of the channel.
And the volume of open interest
The total volume consists of currency in circulation at that time, usually one day. For example, in 2000, the total foreign currency day trading volume of $ 1.4 trillion. However, traders are naturally interested in how specific tools for certain periods of trade due to the high volume of traffic and shows that it is of interest, and some liquidity in the market and a small amount of alerts to reduce the risk of these markets. In a number of markets are generally very difficult to identify or damage. Moreover, some configurations chart of the development of heavy trading volume forsuccessful. Not one of the examples on the head and shoulders formation.Therefore Despite the importance of clear and easily quantified from the amount in foreign currency and markets.One way to assess the numbers in the futures market. The aim of the second to the "amount is based on the number of volumes