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Thread: What is Technical Analysis?

  1. #1
    Join Date
    Aug 2014

    Default What is Technical Analysis?

    What is Technical Analysis?
    Using technical analysis, traders analyse historical price movements in order to predict future movements. This may not sound very effective, but it is. In financial markets, price movements repeat themselves. This is because humans move price and humans are hard wired to follow patterns. The easiest way to explain this concept is to show you.
    What is Technical Analysis?-types-of-analysis-png
    Types of Analysis

    Above, you can see that whenever price approaches the 1.0625 area, it moves away. This indicates that you might want to consider selling USD/CAD next time it reaches 1.0625.

    Why would you sell?

    Well, the last three times price reached 1.0625 it reversed. So, using technical analysis, we assume that price might reverse again.

    Technical analysis is the most common way to trade the Forex market.

    Technical analysis is a self-fulfilling prophecy. If hundreds of thousands of traders are looking at the same analysis, they will trade the same way. The fact that they are all trading the same way pushes price in that direction.

    USD/CAD reversed from 1.0625 twice in a row. Next time price reaches 1.0625, thousands of traders short expecting a reversal. The fact that so many traders are shorting causes price to fall.

    Technical analysis is not as easy as it sounds. If you make a mistake in your analysis, you may short when most traders go long. Learning to use technical analysis properly takes a lot of practice.

    Don’t worry though…

    … I have you covered. After the Forex Education academy you will graduate to the free forex course. In the course you will learn to put safeguards in place to protect your account.

  2. #2


    every traders need to follow technical analysis. this is more important to know for getting some good pips for you. you need to know how to trade with technical analysis. you can read this for learning candlestick.
    How to Trade in Forex by Candlesticks Pattern Analysis - Forex Function
    it will increase your technical knowledge

  3. #3
    Join Date
    Dec 2013


    I use technical blogs, technical blogs provide an overview of the state of the market volume of currencies traded. I saw it in TenkoFx

  4. #4
    Junior Member
    Join Date
    Oct 2014


    interesante tema

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analysis, candlestick, forex, forex market, free, historical, how to, markets, technical analysis, time, trading, usd, usd/cad

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