Technical Analysis in Forex Trading

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Technical Analysis in Forex Trading
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Basic tenets of technical analysis

• Technical analysis is a chart-based approach to
  study of market trends and is based on the
  following premises
• Market prices move up or down in accordance to
  changes in markets demand and supply
• Price move in trends that are more likely to
  continue rather than to reverse
• Market behavior exhibits strong connection to
  Human psychology
• Technical analysis is dealing in the
  post-movement market patterns.
• Timing is absolutely crucial in margin trading
  especially when on significant leverage and only
  Technical Analysis provides tools to distinguish
  entry and exit points.

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Fundamental and Technical Analysis

• Acceleration/Deceleration (AC) Oscillator

Fundamental analysis examines the pre-movement
market whereas Technical analysis is dealing in
the post-movement market patterns. Charts and
fundamentals are frequently in conflict with each
other. Fundamentals often provide an explanation
of important market movements only when its
already too late for the trader to act. The
reason is that market price is itself a leading
indicator of the fundamentals which leads the
rest. Unlike fundamentalists, increased
confidence supported by positive experience
allows technicians not to wait for the extra
confirmation to arrive but enjoy a possibility of
entering the trend at the very beginning.
Moreover, fundamental analysis alone does not
include a study of price action.
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
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Analysis and Timing in Forex Trading

• Acceleration/Deceleration (AC) Oscillator

The decision making process consists of two
stages analysis and timing. Timing is
absolutely crucial in margin trading especially
when on significant leverage. In contrast to
analysis when both fundamental and technical
approaches can be applied when determining
whether the market is under or overvalued, entry
and exit points can solely be distinguished by
analyzing charts.
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
5
Technical Analysis' Flexibility and Adaptibility

• Acceleration/Deceleration (AC) Oscillator

One of the biggest advantages the chartist has
over the fundamentalist is its flexibility and
adaptability that allows switching onto virtually
any area or market staging strong tendencies.
Technical analysis principles are applicable to
different trading mediums. Technicians unlike
specialized fundamentalists can trade as
successfully in either stocks of
futures. Technical analysis has also proven to
be an extremely useful tool when working with
bigger timeframes than it is traditionally but
mistakenly thought to be limited to.
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
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Economic Forecasting

• Acceleration/Deceleration (AC) Oscillator

Futures Markets usually forecast changes in
economy and inflation. Rising commodity prices
normally suggest growing economy coupled with
inflationary pressure wheres falling commodity
prices hint at quite the opposite - slowing
economy and decreasing inflation. The same way
act gold, oil. Even foreign currency futures are
able of giving an idea of how do their domestic
economies feel like. It is particularly
remarkable that trends in futures markets develop
long before they are reflected in traditional
monthly or quarterly economic indicators.

THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
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THANKS FOR ATTENTION
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