Technical analysis is based on three principles. Understanding the three principles will lead to improved achievement in forex trading. The three are:
The entire cause of price movement has been expressed in the pattern of price movements themselves.
Price always move to follow the trend within certain limits.
The history of price movement patterns will always repeat itself.
However, that was just basic; there are more things you should note in regard of technical analysis. How to apply technical indicators, when and where to enter and exit, etc. In this article, we are going to explain three shortcuts in the application of technical analysis.
Before we follow through, make sure that you are familiar with the concept of support-resistances, trend continuation, reversal, sideways, and breakouts. We are going to talk about some simple ways of detecting when reversal and breakouts might happen. Each traders usually has his own way of recognizing the signals, therefore the following explanation will only acquaint you with some examples that you could expand to your convenience.
The entire cause of price movement has been expressed in the pattern of price movements themselves.
Price always move to follow the trend within certain limits.
The history of price movement patterns will always repeat itself.
However, that was just basic; there are more things you should note in regard of technical analysis. How to apply technical indicators, when and where to enter and exit, etc. In this article, we are going to explain three shortcuts in the application of technical analysis.
Before we follow through, make sure that you are familiar with the concept of support-resistances, trend continuation, reversal, sideways, and breakouts. We are going to talk about some simple ways of detecting when reversal and breakouts might happen. Each traders usually has his own way of recognizing the signals, therefore the following explanation will only acquaint you with some examples that you could expand to your convenience.
