How Technical Analysis Work Well in Trading Forex?

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How Technical Analysis Work Well in Trading Forex?
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Index
1. How Technical Analysis Work Well in Trading
Forex? 1. Fibonacci Studies 2. Parabolic Stop
and Reversal 3. Pivot Points
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How Technical Analysis Work Well in Trading Forex?

• In the forex market if you are considering
  currency trading or you are already involved in
  forex currency trading, here money making a
  lesson that we can borrow from investors or
  traders who use technical analysis to help them
  make the investment decisions.
• The goal of performing the technical analysis
  when the currency trading is to predict
  profitable currency pair movements by analyzing
  price trends.

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• The technical analysis principle in the equity
  markets is the same as those in the forex
  currency trading markets.
• The actual difference between this two is that
  the forex market is open for 24 hours a day while
  the equity markets are not.

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• It means that specific analytics that takes time
  periods in consideration will need to be adjusted
  for currency trading in forex.
• Any of these forms of equity technical analysis
  methodologies can be used when currency trading

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• 1. Fibonacci Studies
• This methodology is based upon the theory that
  changes in trends can be predicted based upon the
  prices interacting with lines based upon the
  particular sequences of numbers.

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• 2. Parabolic Stop and Reversal
• This methodology is based upon examination of
  prices in comparison to "stop and reversal" (SAR)
  numbers that indicate your entry and exit points
  for a trade.

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• 3. Pivot Points
• Mathematical formula used to determine when to
  exit in trade based upon the numerical average of
  the high, low and closing prices.

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• In this PPT, the critical difference between
  technical analysis in the Forex currency trading
  market and technical analysis in the equities
  market is the fact that it is probable to
  participate in Forex trading 24 hours a day,
  seven days a week.
• Also, the critical difference is the primary
  reason that technical analysis works so well in
  currency trading.

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• For a technical analysis of various techniques to
  deliver maximum results, there need to be
  extended periods of time available for patterns
  to develop.
• Forex market never closes, and currency pairs are
  traded full day, definable patterns develop more
  promptly, and the technical analyst has plenty of
  forex currency trading data available to work
  with.

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• Because more data means more accurate forecasting
  outcomes, technical analysts can see better
  results, when combining technical analysis and
  Forex currency trading.

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Thank You