In the forex market currency rates (price) is constantly in motion. These movements can not be accurately predicted, because they are influenced by many factors, as the market is made up of members who wish to sell or buy a currency.
Market participants are divided into two main groups: the bulls (profit rate of price increases) and bears (profit from the devaluation). Accordingly, the quotes that are rising in price, called bullish pattern, and quotes that are moving in a downward direction, is called a bearish pattern.
As you may have heard before, Technical analysis is composed of many parts, one of which is a graphical analysis.
Most of the graphical analysis, based on templates (models or patterns) that work, work and work. If a trader learns to instantly calculate the template charting and still wakes know its properties, its success on the stock exchange forex he assured. In order to avoid unnecessary loss of their funds need: to have performed all the conditions of the template and open a position only when the graph crosses the point of entry.
What is the effective graphical analysis?
The biggest plus, which gives us a graphical analysis, this is a great probability of the order after the breakout point. Traders for many years was calculated chart patterns and their properties. At the moment we know a lot of patterns, but this number continues to grow, so we can assume that not all the patterns are known.
Another plus - is the ability to instantly calculate the figures - a good opportunity for the trader to make the most profit. Also a graphic pattern can be applied to any chart halftime, and the efficiency of pattern or be refuted.
As a trader has to work on the pattern:
For a trader, the most important element is the calculation of the pattern, since this is the whole point of the graphic analysis. Then it must comply with all the conditions of a pattern (for example, a local maximum must be above the base) because one item is not implemented and the pattern is not valid. Continuing trade Not implemented on a pattern, it could lead to a great loss of money.
All graphical models have the breakout point, in which case the breakthrough price chart - enter into a warrant. Trader should enter an order only when the price chart crosses breakout point.
For each trader that should be a basic rule. The forex market has repeatedly demonstrated its unpredictability. Therefore, when we conclude the order around the points break, then insure themselves stop orders.
What has our resource traders:
Our resource provides complete information on the trader graphical analysis and its components. Complete information about patterns, practical tips, examples, theory - all this you will find in our articles.
A wide range of visual patterns, which will be constantly updated with new models. If the world of trading will be a new model of graphical analysis, we will as soon as possible and describe it in our articles.
If you are looking for a resource that will provide you with all the information on the forex market, then you have found a resource that will tell you all about the image analysis and more (see " Foundations of Forex ").