Currency Technical Analysis - A Beginners Guide to higher profit

Currency Technical Analysis - A Beginners Guide to higher profit

This article gives you a complete guide to currency technical analysis. We explain why it works, and show how you can use technical analysis of currency markets, to make big profits.

Many traders do not fully understand the advantages of technical analysis - and sneering at him, saying it can not work.

We will, however, show you how to use technical analysis currency the right way to make big profits - so let's get started.

What is Currency Technical Analysis?

It is simply defined as the study of price action through the use of charts - for the purpose of identifying price trends. It is not a science, as many chartists claim - it is art, and it works! Why? Due to technical analysis reflects human psychology. What about supply and demand fundamentals, you may ask - and this takes into account too.

Currency technical analysis uses the following equation:

Market Perception (trader psychology) + Fundamentals = Price Action

All currency technical analysis is the postulate that all the bases quickly reflected in price action (and in the 21st century with our advanced communications this is truer than ever) - so you just concentrate on price action. It really is that simple!

Price action reflects all the fundamentals, and more importantly, how to recognize the participants.

Traders who learn the fundamentals argue that you can use technical analysis - because you need to know and learn the basics, to know where prices are going - it is simply not true! Some of the biggest price moves in history, occurred with little or no change in fundamentals.

The fact is that most markets are generally bullish on the market tops and most bearish at market bottoms - and these markets occur with little or no change in fundamentals. Human psychology was at work here - and currency technical analysis of this study, as well as the basics.

To learn to use technical analysis and you will see reality as it is - not listening to the opinions of others. Keep in mind that 90% of traders lose money - because they are influenced by greed and fear created by the news services.

Schedules allow you to see the reality - and that is a huge advantage.

Currency technical analysis makes the following assumptions:

1st Markets Discount

All fundamentals show up quickly in price action when you use technical analysis. You're going studying the fundamentals as they are - not trying to hit their impact - and of course, you study human psychology as well.

2nd Trends persist

Currency technical analysis can prove this - just get out a chart of any currency, and you will see long term trends - will last many years.

History repeats

Base currency technical analysis, is that what happened in the past will happen again - and that is why it is so effective.

Human behavior is repeated - and the price patterns reflect shifts in human psychology, we can assume that some patterns and trends will be repeated.

Your goal

Your goal is to use technical analysis to catch and hold long-term trends. Keep in mind that human behavior do not happen again - but people can be unpredictable as well!

Keep in mind that technical analysis is an art, not science. Be wary of theories that say they can predict with scientific accuracy - they can not! - If they can, we will all know the price in advance - and there will be no market.

The good news is that by using technical analysis in the money markets, you can get the odds for your benefit - and make big long term profits.

Trade odds currency Frankfurt

In gambling, the goal is to get the odds in your favor - and in trading, your goal should be to trade only when the odds are in your favor. You will not win every trade - but none can be found at the top players from every attack on goal.

The following information listed here, and putting in a little work and preparation, could soon be racking up huge long-term profits by using technical analysis of currency.