# 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?

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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
3
How Technical Analysis Work Well in Trading Forex?
• In the forex market if you are considering
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
• 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
• 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

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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

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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