In Forex there are two types of analysis, Fundamental and Technical. The Fundamental Analysis attempts to predict movements in currencies by examining the situation current economic and political. Technical analysis uses historical economic data to forecast market movements currency forex. Here we examine the principles of technical analysis and related tools.

Basic Principles

Technical analysis is based on three assumptions:

1 - The price movements are the combined result of all the forces and trends      market. The currency prices are affected by political events, economic conditions, supply and      demand, seasonal variations and weather conditions. The technical analysis, however, ignores the reasons      cause market movement, but rather the movements

themselves.

2 - The currency prices due to trends. Many market patterns have been      recognized as having predictable effects.

3 - The price movements are due to historical trends. The relevant data market      forex currency have been collecting for more than 100 years and new patterns have emerged over time. These patterns      based on human psychology and how to respond to a series of circumstances.

Do you need technical analysis?

Many of the operators of the day depend on the forex market technical analysis and can also take advantage of the analysis instrumental in confirming its strategy in the operation. A major advantage of technical analysis with respect to is essential that technical analysis can be applied to different markets and different currencies simultaneously. Fundamental analysis requires a thorough understanding of the political and economic conditions of a certain country, and therefore less probable that an operator can properly make fundamental analysis from various countries.

The beginner trader may be discouraged by the presumed complexity of technical analysis and wonder if it is necessary to operate in the forex currency market. And as with any investment, the operation in the forex market requires a strategy. Although it is possible to apply any strategy, technical analysis is a proven method to predict movements in the forex market. Does this mean that is a safe? Nothing is 100% safe and prices are affected by currency variety of forces. This is the reason why many operators make use of the combination of analysis fundamental technical one, to plan their strategies in operations.

Availability

All forex brokers or online brokers should offer access to a wide variety of graphics for analysis technicians. Some graphics software are available for free while others are detailed professional graphics available on a monthly basis. The graphics can be seen in different time scales and provide information details about price movements as well analytical overlays. The graphs can be extended to power observe small changes or reduced to take an overview of a period of months or years. The graphics are updated in real time.

Forex charts forex can be provided on the website of your broker or broker or may be included as part of its operating software.

Before you start trading in forex is a good idea to get used primarily for the market through graphs and study their movements and learn their tendencies. Many forex brokers offer practice accounts or demonstration that can be used by beginners to execute orders of test - without investing real money. These accounts demonstration make it possible for a novice operator to become familiar with the graphics and movement of forex currency market while at the same time allow you to get used to the operating software that uses a particular broker.