Axioms of technical analysis.

As you know, in any business there are things that do not require additional evidence; this also applies to technical analysis of the Forex market.

The axioms of technical analysis are conclusions made by more than one generation of traders about the movement of exchange rates and assessing the situation in various markets.

They are universal for both Forex and the stock and commodity markets.

All conclusions are grouped into several groups, so there are not so many axioms themselves:

• Price takes everything into account – you can find this axiom in almost any textbook on technical analysis or Forex.

She claims that price analysis allows you to obtain complete information and correctly assess the state of the market. The price contains information about the latest events, the price expresses supply and demand for a trading instrument, and reflects social, political and economic factors.

• Price has a direction - the price can rise, fall or move horizontally, but the direction always exists. Even during a flat , the price still changes, but these movements are hardly noticeable.

It is the price direction that plays a decisive role in choosing the direction of transactions and is the main subject of analysis. • History repeats itself - this axiom is much broader than just a statement that in certain time periods the exchange rate reaches similar values. Here we talk more about the emergence of patterns in Forex , when a similar event causes a certain market reaction.

For example, an increase in inflation causes the exchange rate to fall. Knowing how the price behaved in a given situation, you can predict the direction of the trend when it repeats in the future.

Correct perception of these axioms guarantees you successful Forex trading and significant profits.