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The three main assumptions of forex technical analysis

{}Posted in2023/2/26 11:16:34 | 6Browse

A. Market behavior embraces forexcashrebate digests everyth cashbackforexexnessg Market behavior embraces and digests everything forms the bas Forex rebate for Exness of technical analysis Unless you have fully understood and accepted this premise, it is meaningless to study technical analysis Technical analysts believe cashback forex any factor that can affect the forexrebates of a commodity foreign exchange base, political, psychological or any other aspects are actually reflected in its price As a corollary, what we must do is to study price changes This statement may sound too arbitrary at first, but it is true to spend a lot of effort to scrutinize it The essence of this premise is that price changes must reflect supply and demand, if demand is greater than supply, prices are bound to rise; if supply is more than demand, prices are bound to fall The law of supply and demand is the starting point of all economic forecasting methods to reverse it, so as long as the price rises, regardless of whether it is the price of a commodity. Then, as long as the price rises, regardless of what specific reasons, demand must exceed supply, from the economic basis must be bullish; if the price falls, from the economic basis must be bearish Ultimately, technical analysts are only indirectly through the change in prices to study the fundamentals of most technicalists will agree that it is the supply and demand of a commodity, that is, the fundamentals of the decision of the commodity bullish Yu The bearish charts themselves do not cause the ForexrebateforExness to move up or down, but are simply a concise indication of the prevailing optimism or pessimism in the market. Chartists usually ignore the reasons why prices move up or down, and when the market is at a critical turning point in the early stages of a price trend, no one knows exactly why the market is moving so oddly. So as you become more experienced in the market, the more you encounter these situations, the more irresistible the phrase "the market behaves in a way that digests everything" becomes. It is logical that since all factors affecting market prices must eventually be reflected through market prices, it is enough to study prices. Technical indicators, let the market itself reveal its most likely trend, and not the analyst with his savvy to conquer the market all the technical tools discussed in the future is only an auxiliary means of market analysis Technicalists certainly know that there must be a reason for the rise and fall of the market, but they believe that these factors are irrelevant to the analysis of forecasts Second, prices evolve in a trend way Trend concept is the core of technical analysis to study the price chart the whole In fact, technical analysis is essentially following the trend, that is, to determine and follow the established trend for the purpose of from the evolution of prices in a trend manner can be inferred spontaneously, for an established trend, the next step is often to continue to evolve in the direction of the existing trend, and This is, of course, an application of Newtons law of inertia. It can also be stated differently: the current trend will continue until it reverses, although this is almost a repetition of the same phrase. For example, price patterns, they are expressed through the shape of some specific price charts, and these graphs indicate the psychology of people bullish or bearish on a market in fact, these graphs have been widely known and classified in the past centuries Since they worked in the past, it may be assumed that they are equally valid in the future, because they are based on human psychology, and human psychology is never History repeats itself. To be more specific, the key to open the door to the future is hidden in history, and the future is a replica of the past.