How Technical Analysis Work Well in Trading Forex? - PowerPoint PPT Presentation

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How Technical Analysis Work Well in Trading Forex?

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The goal of performing the technical analysis when the currency trading is to predict profitable currency pair movements by analyzing price trends. – PowerPoint PPT presentation

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Title: How Technical Analysis Work Well in Trading Forex?


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

4
  • 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.

9
  • 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.

12
  • 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.

13
  • 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
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