Technical Analysis for Beginners

In general, technical analysis can be defined as a pair of price forecasts, rather than the economic basis of mathematical calculations. This approach has created the need for profit stock and currency markets. Preliminary technical analysis is divided into a number of technical and only 70 of all these methods are general psychology, principles of justice and managing an integrated part of the power of solidarity.

Technical analysis is a method to predict movements in the market with price changes may reflect fluctuations in the history of the chart. The actual use of technical analysis to determine the number of axioms.

Axiom 1 
Each pricing factors - economic, political, psychological, were taken into account and reflected in the chart. A message appears, the market price, taking into account this new information.

Axiom 2 
Direction of price movement. This proposal has all the technical basis for the analysis. The main purpose of the technical analysis is to identify any changes in exchange rates, in other words (trend) and application of knowledge acquisition. Dow Jones to accept the definition that the trend bull market in each peak and then decline more than previously. This proposal is a fundamental principles of technical analysis. The trend is divided into three types: telephone (move up), down (autumn), and a bypass of the transaction (the price is unchanged). All that kind is rare in its pure form, as the direct effect of price does not always appear on the market.

The trend is that some of the indicators presented in the opposite direction. According to Dow Jones, the trend exists, although the market noise. But, in practice it is not so easy to decide whether a trip, a new trend or just a temporary transfer basis. Modern technological tools, the operator can easily identify, but different interpretations by different investors, the trend shows that it is.

Axiom 3 
Analysts predict that if a rule on the previous work, this rule can be applied to the formation of future prices, mainly due to human psychology. This is a technical analysis of the main basic ideas:

Interest, having regard to all, so everything you need to know in this area is the study of price charts. The aim is to understand trends in the initial phase, to identify trends in the development and application of knowledge to make the right decision. The last thought that if the work in the past, it may be in the future.

Dow Theory is the "main movement", "medium swing" and "Maps". "The biggest movement is a common part, because it can take several years." The average Swing "is a great motion correction, it must be from the last 10 days to 3 months. In the" short period ", or minor fluctuations in Movement may take up to three weeks.

According to this theory, the market averages confirm each other all thend should confirm number. Dow Jones confirmed the hypothesis of each volume pricing.

Many analysts of modern technology, the Dow theory, the modern, as a technical analysis of the basic definitions of the main trends.