Technical Analysis

Previously, you should know, that there are two basic types of analysis of commonly used forex traders:

1. fundamental analysis: by relying on the news/rumor that occurred in the market.

2. Technical analysis: by relying on charts and mathematical formulas.

Technical Analysis:

Technical analysis is the analysis of the movement which is based on a mathematical count (formulas, graphs, charts, etc.). By combining the movement of a pair with specific mathematical formulas are expected to give an overview or a prediction of the future. Well you have to be careful and pay attention to is the words picture/predictions, so accuracy is not 100%.

The magnitude of the accuracy of this was the art and its own level of each trader. The more you diligently honed the formula, evaluate, integrate, etc. then it would be more precise or more accurately, in other words, more skilled in using technical analysis.

Some important things related to technical analysis:

IE:

1. Price Chart: pair price is representative of where we want to perform calculations or analysis considerations against it. There are 3 main graph model, i.e. the line, bar and candle (candlestick), the most popular in Indonesia is a graph of the graph candlestik.

2. Indicator: arguably almost impossible if the trader technical analysis but did not know with what are often referred to as indicators. With this indicator then allows the trader to get an overview or a more complex look (graphics, lines, etc.) so expect a new perspective appears in the analysis.

There is an awful lot in the forex indicators, can be hundreds, but not all important or fit in with tradernya. Some commonly used indicators are: SMA/MA, EMA, RSI

3. Tools-techniques and methods: the purpose of simple technical analysis is, it could get the picture will trend (up/down) is happening at the moment. For it other than with charts and indicators there are techniques in technical analysis are also often used as: interesting Trend lines (a technique to predict the trend line), Fibonacci (predictive engineering support/resistance), Elliott Wave, Retracement & Reversal, etc.