Understanding Technical Analysis (1)

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Understanding Techniqal Analysis

• Presented byThe Forex Secret

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Technical Analysis Definition

• Study of historical price action to identify
  patterns and determine probabilities of future
  movements in the market through-

• Use of technical studies
• Indicators
• Other analysis tools

3
Contd

• Technical analysis boils down to two things-

• Identifying trend
• Identifying support/resistance through the use of
  price charts and/or timeframes

4
Contd

• Markets can only do three things-

• Move up
• Down
• Sideways

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Contd

• Prices typically move in a zigzag fashion, and as
  a result, price action has only two states-

• Range when prices zigzag sideways
• Trend prices either zigzag higher (up trend, or
  bull trend), or prices zigzag lower

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Why Is Technical Analysis Important?

• Technical analysis of a market can help you
  determine not only when and where to
• enter a market, but much more
• importantly, when and where
• to get out.

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How Can You Use Technical Analysis?

• Identify a technical analysis strategy or develop
  a trading system
• Identify tradable securities that fit with the
  technical strategy
• Find the right brokerage account for executing
  the trades
• Select an interface to track and monitor trades
• Use Additional Software or Tools

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