Technical Analysis in Forex Trading

Basic tenets of technical analysis

Technical analysis is a chart-based approach to study of market trends and is based on the following premises: 1. Market prices move up or down in accordance to changes in markets demand and supply 2. Price move in trends that are more likely to continue rather than to reverse 3. Market behavior exhibits strong connection to Human psychology Technical analysis is dealing in the post-movement market patterns. Timing is absolutely crucial in margin trading especially when on significant leverage and only Technical Analysis provides tools to distinguish entry and exit points.

Fundamental and Technical Analysis

Acceleration/Deceleration (AC) Oscillator: Fundamental analysis examines the pre-movement market whereas
THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF and fundamentals are frequently in conflict with each other. Fundamentals CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE often provide an explanation of important market movements only when its PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND already too lateDUE for the trader to act. The reason isPRICING, that market price is itself CHARACTERISTICS TO THE NATURE OF EACH ASSET a leadingINSTRUMENTS" indicator of the fundamentals which leads the rest. Unlike "GOLDEN - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE by SIGNALS fundamentalists, increased confidence supported positive experience FOR OPENING A RISK-BASED BALANCED POSITIONS. allows technicians not to wait for the extra confirmation to arrive but enjoy a

Technical analysis is dealing in the post-movement market patterns. Charts

possibility of entering the trend at the very beginning. Moreover, fundamental analysis alone does not include a study of price action.

Analysis and Timing in Forex Trading

Acceleration/Deceleration (AC) Oscillator: The decision making process consists of two stages analysis and timing.
THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF leverage. In contrast to analysis when both fundamental and technical CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE approaches can be applied when determining whether the market is under PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND or overvalued, entry and exit pointsOF can solely be distinguished by analyzing CHARACTERISTICS DUE TO THE NATURE EACH ASSET PRICING, charts. INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL "GOLDEN AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Timing is absolutely crucial in margin trading especially when on significant

Technical Analysis' Flexibility and Adaptibility

Acceleration/Deceleration (AC) Oscillator: One of the biggest advantages the chartist has over the fundamentalist is its flexibility and
THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF tendencies. Technical analysis principles are applicable to different trading mediums. CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE Technicians unlike specialized fundamentalists can trade as successfully in either stocks of PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND futures. CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

adaptability that allows switching onto virtually any area or market staging strong

Technical analysis has also proven to be an extremely useful tool when working with bigger timeframes than it is traditionally but mistakenly thought to be limited to.

Economic Forecasting

Acceleration/Deceleration (AC) Oscillator: Futures Markets usually forecast changes in economy and inflation. Rising commodity
THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF falling commodity prices hint at quite the opposite - slowing economy and decreasing CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE inflation. The same way gold, oil.NEW Even PROPERTIES foreign currency PORTFOLIO MANAGER BY act ACQUIRING AND futures are able of giving an idea of how do DUE theirTO domestic economies feel like.PRICING, CHARACTERISTICS THE NATURE OF EACH ASSET "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

prices normally suggest growing economy coupled with inflationary pressure wheres

It is particularly remarkable that trends in futures markets develop long before they are reflected in traditional monthly or quarterly economic indicators.

THANKS FOR ATTENTION

BEST REGARDS, IFC MARKETS