Technical analysis is the study of the movement of prices using charts, in order to anticipate price movement in the future, do not care about technical analysis of the reasons that lead to the movement of the market (as opposed to fundamental analysis), but focuses its attention on the price movement considering that all the reasons and factors that drive the market are reflected in the finish on the price movement, and thus Studies of price from the viewpoint of technical analysis is worthwhile.
And technical analysis is based on three principles:
Market movement resolved everything:
Where technical analysis is that all the reasons and factors that lead to the movement of the market is reflected in the end price, and therefore must be analyzed where the price includes all these factors.
Prices move in trends:
The analysis is based artwork that prices tend to movement directional, meaning that prices when they take bullish or bearish for a long time tend to continue these trends long before they reflect the direction, which facilitates the process of analyzing where it is supposed technical analyst that the price will continue the previous trend unless show clear technical signals indicate reversal.
History repeats itself:
Price movement is only a product of supply and demand, which are made daily and carried out by millions of investors in various cultures, and thus movement market is the product of human nature and the psychological status of public investors and traders during trading, and therefore depends technical analysis on the repetition of some of the models and patterns that indicate when formed to conduct myself given to investors and thus have their expected impact similar to the impact that has occurred in the past. This is meant that history repeats itself.
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