Training a variety of technical analysis in Forex
What you will read ...What is technical analysis or technical analysis?Basic Technical AnalysisThe concept of resistanceConversion of support to resistance and vice versaBuy and sell decisions based on support and resistance
A method for predicting fluctuations in the price of a share is based on the study of graphs or price tables, assuming that stock price changes are a recurring issue and the movement of investors follows a particular pattern of psychology.
So what happened in the past will be repeated in the future. The technical analyst does not work for the company’s fundamental strength and weakness, but rather studies the behavior of investors and share prices in the past and in the future.
What is technical analysis or technical analysis?
A way to predict prices in the market is through a study of the past market situation. In this analysis, by examining fluctuations in prices and volumes of transactions and supply and demand, we can predict the future price situation. This method of analysis in the foreign exchange market, the stock market, the gold market and other precious metals is widely used. Technological analysts do not measure the intrinsic value of securities, instead they use charts and other tools to identify patterns that can predict future performance of the contribution.
This type of analysis is based on “studying the behavior and movements of price and stock volume in the past and determining the price and future trend of the share”. Changes in share prices are analyzed using the historical background and charts by a technical analyst. This method is most often used by speculators and thus aims to increase their desired returns when raising share prices. In fact, investors use this method with a short-term perspective.
The technical analysis predicts the price by examining past prices and the volume of futures trading. The basis of these analyzes is focused on the use of graphs and mathematical and geometric relationships in order to achieve small and large trends. In this regard, purchasing or selling opportunities are determined by estimating the range of market fluctuations.
Basic Technical Analysis
The support and resistance of a share or symbol is related to the concepts of supply and demand. In general, the price of a symbol increases when demand exceeds supply (high demand).
In the case of a fall in the price of a symbol, the same is true; the symbol price decreases when the supply is over demand. (High supply).
A supportive and supportive price is the price that supply and demand forces are expected to balance, and the process of increasing or decreasing prices will be stopped.
The concept of resistance
The level of the price that is expected to have the power of supply enough to prevent further price increases.
Simply put, resistance is where the price trend is likely to stop there. To plot the resistance level, connect the peaks on the chart to the horizontal line.
Conversion of support to resistance and vice versa
When support for a share or symbol breaks down due to the supply pressure, then the support level can turn into a level of resistance. This is also about breaking the level of resistance in the same way.
Buy and sell decisions based on support and resistance
If you intend to buy a share, you can use the support levels to determine the appropriate time for purchase. If you intend to sell a share, you can use resistance levels to determine the appropriate sales time.
If you look for an example of resistance lines and support, you can easily find many examples on our market every day. In general, one of the most widely used concepts on the stock exchange is the resistance and support lines.