Blog Marco

Technical analysis is the methodology used by forex traders to predict or weigh up the odds of future price movements and market trends by studying past market price action. The premise of this analysis technique is patterns within the prices would reveal possible trends, highs and lows based on predictable repetitive human behaviour. People are predictable and have habits: history repeats itself. Also, the price action in a chart reveals everything there is to know about that instrument since the current price action accounts for all the market factors and sentiment, supply and demand.

There are a few sub-branches to technical analysis:

• Oscillating indicators (RSI, Stochastics, MACD)
• Number theory including the mathematical Fibonacci numbers and the slightly mystical Gann numbers
• Elliot Wave Theory
• Gaps
• Trends and Averages

It isn’t necessary to use all of them at once. Perhaps the most commonly used are oscillators like RSI and MACD, Fibonacci numbers and Trends using Moving Averages.

If you want to read more... download the ebook here at TradingProfits.org - Trading Forex Basics

Business | Marco's blog | bookmark | reddit | cosmos»