Technical Analysis
Technical analysis is an analysis of price movements
of currencies based on the price movement of the currency
itself in the past.
Technical analysis has 3 basic principles in mind:
- Market Price Discount Everything
Ie all events which may cause the fluctuation in exchange
in whole or in foreign exchange rates currency of
a country such as economic factors, political, and
fundamental, including events that can not be predicted
before the war, such as, earthquakes, and so will
be reflected in the price market.
- Moves in Price Trend
That is the price movement does not move randomly
but in an ongoing pattern (trend) and will continue
to progress until there is signs that this pattern
of movement and turn the direction to stop.
- History Repeats it Selfs
Because technical analysis also describes the psychological
factors of the market, the movement can be a historical
reference to predict price movements in the future.
Historical pattern, this can be seen from time to
time in the graph. These patterns have a meaning that
can be diinterprestasikan to predict price movements.
Graph (Chart)
Use the graph or chart is the most important in technical
analysis because only one object is a technical analysis
of price movement can be seen from the chart.
The chartist (party technical analysis), believe that
they can see patterns in the movement of exchange rates
with future observations based on the exchange rate
movements in the past. In short, they hold this jargon:
"History always repeats it self." Philosophy
is of course contrary to the fundamentalists in which
investment decisions on the value of a currency based
on the fundamental economic factors, political, monetary
and countries concerned.
Main weapon of the technical analyst is the graph
(chart - that's why they called chartist). Through this
chart they can see the trend is in progress, time trend,
the volume of transactions and level-existing psychological
level. If you have been able to find out 4 that, of
course the advantage of flowing immediately akan downpours
to your pocket. The 4 things that must be held by a
chartist, namely the form of:
- Trend
- Transaction volume
- Level-level psychological (support and resistance)
- Period of time that occurred.
But now the question becomes how accurate is our ability
to predict the price? Well that should continue to grind
down in every day. There is no one perfect method of
both fundamental and technical. Experience and self
central role here.
Example in the chart technical analysis
Hopefully useful to all
of us ..
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