Technical analysis methods

There are several basic methods of technical analysis of the Forex market, which allow you to assess the current situation. It is advisable for a novice trader to have an idea of ​​all the existing options, and only then choose the most suitable one for himself.

You should start studying with simpler and more understandable points, and only then move on to more complex work schemes.

It is not always the most difficult option for studying the market that will bring you the most accurate result and, as a result, the long-awaited profit.

Conventionally, all existing methods can be divided into graphic, cyclic, channel and levels.

There are also other options for studying the market. but today we will focus on the above listed

1.    Graphical methods technical analysis are based on studying the movement chart of a currency pair, they are quite extensive. The most famous example of the application of this method is the detection of graphic figures that periodically appear on charts.

These figures may indicate a continuation of the existing trend or be a signal for a price reversal.

In fact, any of the Forex strategies includes elements of graphical analysis, so this section should be discussed in more detail during the study process - http://time-forex.com/ys

2. Channel - in essence, they are a branch of the previous group, This method is based on the assertion that the price almost always moves in a certain price channel, which is formed by support and resistance lines.

When applying this method of technical analysis, the width of the existing channel, the speed of price movement, the magnitude and frequency of the correction are analyzed.

One of these simple strategies is given on the page - http://time-forex.com/strategy/torgovly-v-kanale

3. Cyclical - based on the theory that the movement of exchange rates in the Forex market occurs in a cyclical pattern.

That is, the oscillations repeat periodically and have a similar structure. One of the most famous theories based on this method is the Elliott wave theory. Cyclic methods are used in the analysis of medium- and long-term time periods; this technique is practically not used on short time frames.

4.  Levels – the construction of levels is also widely used in technical analysis of the foreign exchange market; in addition to the fact that the resulting levels give an idea of ​​the situation on the market, they also serve as guidelines for opening new transactions or exit points from existing ones.

The most famous levels are Murray, Fibonacci, pivot points, Dinapoli, etc.

One of the most popular level strategies is the strategy based on the Stochastic indicator - http://time-forex.com/strategy/strategiy-stohastik , which is loved by many traders.

special indicators are widely used .

They perform calculations based on specified parameters and can independently display the obtained data on charts of a currency pair. In addition, such scripts do an excellent job of constructing tasks - levels, channels, searching for graphic figures and candles.