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The theoretical basis of technical analysis in the foreign exchange market

2023/2/26 11:05:10  Classification:   Participation: 8  

 Technical analys best forex rebate has three basic assumptions or prerequisites:   1.Market behavior embraces rebates cashback forexforex digests everything   2.Prices evolve in a trending manner   3.History repeats itself  Market behavior embraces and digests everything   Market behavior embraces and digests everything rebatemeaninginforex forms the basis of technical analysis Unless you have fully understood and received this prerequisite, the following discussion is meaningless Technical analysts believe that any factor fundamental, political, psychological or any other aspect that can affect the bestforexrebate of a rebateinforextrading is actually reflected in its price This assertion may sound too arbitrary at first, but if you spend a lot of effort on it, you really have nothing to say   The essence of this premise is that price changes must reflect supply and demand, if demand is greater than supply, prices must rise; if supply is too much demand, prices must fall this The law of supply and demand is the starting point for all economic, basic forecasting methods to drop it over, then, as long as prices rise, regardless of what specific reasons, demand must exceed supply, from the economic basis must be bullish; if prices fall, from the economic basis must be bearish You see, this paragraph of the basic analysis of how strong the flavor, but there is no need for it to appear in our article purely on technical analysis In the end, technical analysts are only indirectly studying economic fundamentals through prices Most technicalists would agree that it is the underlying supply and demand, the economic fundamentals of a commodity that determines whether the market for that commodity is bullish or bearish The charts themselves do not cause the market to rise or fall, but simply show the optimism or pessimism that is prevalent in the market    Chartists usually ignore the reasons why prices rise and fall, and in the early stages of a price trend or when the market is at a critical turning point, often no one knows exactly why the market is acting so oddly It is precisely at such critical times that technical analysts often find a way to hit the nail on the head, so as you become more experienced in the market, the more you encounter such situations, the more the market acts The more you experience the market, the more you encounter this situation, the more the market behavior becomes irresistible charm   logically, since all the factors affecting the price of the foreign exchange market must eventually be reflected through the market price, then the study of the price is enough In fact, the chart analyst is only by studying the price chart and a large number of auxiliary technical indicators, let the market itself to reveal its most likely In fact, the chart analyst is merely studying price charts and a large number of auxiliary technical indicators, allowing the market to reveal its most likely trend, not the analyst with his savvy to conquer the market all the technical tools discussed in the future is merely an aid to market analysis Technicalists certainly know that there must be reasons for the rise and fall of the market, but they believe that these reasons are irrelevant to the analysis of forecasts Prices evolve in a trend way   The concept of trend is the core of technical analysis or that In fact, unless you accept this second premise, there is no need to read on. The whole point of studying price charts is to reveal a trend early in its development, in a timely and accurate manner, so as to achieve the purpose of trading with the trend. The next step for an established trend is often to continue to evolve in the direction of the existing trend, and the likelihood of a reversal is much less This is, of course, an application of Newtons law of inertia, which can also be put another way: the current trend will continue until it reverses, although these few sentences are almost a car wreck, but repeatedly stressed This is the source of the trend compliance theory History repeats itself   Technical analysis and market behavior are inextricably linked to human psychology for example, price patterns, they are expressed through the shape of some specific price charts, and these In fact, these graphs have been widely known and classified in the past 100 years, since they worked in the past, it is worth thinking that they are equally effective in the future, because they are based on human psychology, and human psychology is never easy to change the nature of history will repeat itself, that is, the key to open the door to the future Hidden in history, or that the future is a replica of the past  

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