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Main 3 principles of forex technical analysis

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Old 08-08-2019, 00:25
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Join Date: Jul 2019
Posts: 8
Default Main 3 principles of forex technical analysis

Technical analysis is the most popular tool used and applicable to stocks, indices, commodities, futures, cryptocurrencies or any tradable instrument where the price is influenced by the forces of supply and demand.
Technical Analysis is the estimating of future price movements based on an examination of past price movements.
Technical analysis uses the indicators and a wide variety of charts that show price over time.
Technical analysis can be used for any freely traded security in any financial market
Traders use technical analysis to anticipate price movements, which makes it easier to distinguish areas of buy and sell.
Price data or market action refers to any combination of the open, high, low, close, volume, or open interest for a given security over a specific timeframe.
The timeframe can be based on Intraday data 1-min, 5-min, 15-min, 30-min, 1-hour, daily, weekly, Monthly.
Principles of technical analysis :

Market movement controls everything
There are trends in price movement
History repeats itself

Market movement controls everything
This is the cornerstone of technical analysis and if the meaning of the first rule is not fully realized and accepted, it will not be easy to interpret the other rules.
All technical analysts believe that the price movement is only a reflection of the changes in supply and demand.
If the demand exceeds supply, the price will go up, if the supply exceeds the demand, the price will drop. This movement is the basis of all economic forecasts.
If the technical analyst thinks about this, In the case of a rise in the price, whatever the grounds for its advance, demand must outweigh the supply, and that the fundamental analysts will be pressured to get the price for the upward trend. Conversely, analysts will try to take the price for a downward trend in the case of a drop in price.
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Old 25-04-2020, 20:03
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Join Date: Jun 2015
Posts: 288
Default Re: Main 3 principles of forex technical analysis

Instead of worrying too much about principles, I believe we should go with simple facts and that’s what I try to do with help of FreshForex broker. I mostly work myself through tight money management and market analysis, as that’s what leads into positive outcome for me.
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Old 05-06-2020, 15:41
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Join Date: Nov 2018
Posts: 685
Default Re: Main 3 principles of forex technical analysis

I would also advise traders to learn proper risk management as part of their technical analysis, as otherwise they will likely continue losing their investments.
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Old 19-08-2020, 17:23
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Join Date: Jun 2015
Posts: 288
Default Re: Main 3 principles of forex technical analysis

From my point of view price action analysis strategy is the best of the best strategy in technical analysis as I am using this on FreshForex broker for the last good 5 years and almost every time I a getting positive response so besides your 3 analysis you can spend some time on price action analysis.
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