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Forex Technical Analysis and Trend Determination

2023/2/25 6:54:21  Classification:   Participation: 7  

What rebate rebatesinforexforextrading Technical Analysis Technical rebatemeaninginforex underst bestforexrebates market movements by looking at historical prices and formulates trading strategies accordingly It is, along with fundamental analysis, the main analytical method for analyzing financial markets Unlike fundamental analysis, which focuses on economic, political and financial developments, cashback forex analysis essentially focuses only on charts, by studying historical price changes to reasonably speculate on possible future market best forex rebates Traders who use technical analysis believe in the following three prerequisite assumptions: market prices contain all the information one needs to understand; prices fluctuate in a trending manner; history repeats itself These three premises are the basis for technical analysis to be effective, and it is only when we conduct technical analysis that it will be helpful in predicting future market trends It is important to note that technical analysis is not In practice, you may find that the trading decisions you make based on rigorous technical analysis results are contrary to the direction of price fluctuations in the market This situation does not contradict the original purpose of our technical analysis, and does not mean that your technical analysis method is wrong The role of technical analysis is not simply to predict the rise or fall of market prices, its true significance is to help traders better understand the market Its really about helping traders better understand the market and develop a trading strategy that fits the current market The common methods of technical analysis include chart patterns and technical indicators, and well create two separate articles to cover them In this article, well cover one of the basic skills of technical analysis Identifying trends Why identify trends In the Beginners Academy "Three Chart Types", we cover how to read three common charts, even if you previously knew nothing about forex charts, by reading the article, I believe you have had your own insights into the information reflected in the charts However, just reading chart prices does not help us make trading decisions, you also need to understand how to identify price trends on charts chart trends are divided into three types: rising, falling and consolidation in rising and falling one-sided trends, the People tend to take a breakout trading strategy, that is, only trade in one direction, buy up or buy down while in the consolidation trend, people tend to take a high-selling low-absorbing range trading strategy, when the price rises to the top of the consolidation range to sell, down to the bottom of the consolidation range to buy Therefore, to determine whether the currency price trend in the rising / falling unilateral trend, or in the consolidation of the range trend, is particularly important to traders, only the The trend is accurate, we can use the correct trading method as possible There are many tools to identify the trend, and almost all technical analysis will involve the determination of the trend In this article, we first describe how to draw trend lines, support/resistance lines in the chart, and the general rule of whether the trend is over Note that the minute chart, although it can sometimes reflect some trend, but We still recommend that you use technical analysis tools on longer-term charts because the price information on longer-term charts is more comprehensive and statistically more reliableFor example, price information on hourly charts is more reliable than on minute charts, and price information on daily charts is more reliable than on hourly charts Trend lines, support and resistance linesA trend line is a straight line that shows the trend of a currency pair and consists of two or more prices connected in a rising market, a trend line is a support line; in a falling market, a trend line is a resistance line - A support line is a line made up of prices connected with support. If the exchange rate ever falls to a price level when it folds back several times, we consider it a price with a support line. The more support lines, the more reliable the support line unilateral rising Trend lines in the market  - Resistance lines are lines connected by prices with resistance, if the exchange rate ever rises to a price level when it folds back several times, we consider this to be a price with resistance The more resistance points, the more reliable the resistance lines unilateral down trend lines in the market On the MT4 platform, we can Find the tool to draw trend lines on the toolbar above the platform  The principle of drawing trend lines is to find the relevant highest and lowest points in the up (down) trend of the time period under consideration, connected by a straight line, in which the price cannot cross the trend line drawn out the longer the trend line, the more powerful the unilateral force represented, the price is falling (up) to the trend line near The greater the likelihood of folding back drawing a trend line can help us more clearly identify the current market trend at the same time, I also need to rely on the trend line to determine whether a trend is still continuing in the next chapter we will introduce the general rule to determine whether the trend continues

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