Technical Analysis Functions

Technical Analysis Functions : Technical analysis, which is known as an indicator (LED) is essentially three basic functions that give a warning confirmation, and as a predictive tool. The indicator can act more like a warning in the assessment of price developments as indicators, information is the currency market movement forward. Makes it easier to perform for us in determining the decision operations.

For example, if it comes to giving a boost to alarm (warning), the display can show a break or support (support is the bottom line of the table as a point in price plane motion, usually annulment price will rise or by touching the support line. And if it breaks below the support line, the price will drop down to find a new basis).

Or, conversely, should be in the form of price increases, the indicator can be used as a warning sign (the emergence of resistance is the composition that is one point in the plane motion when prices touch the resistance, then the market price will rise when the price of this item the price will continue to increase until you find a new point of resistance).

Indicators can be used to treat other technical analysis tools (usually forex traders combine several indicators as a basis for development of the market, such as MA (Moving Average) with RSI (relative strength Index), or they can be used To confirm CCI ( Commodity Channel Index), when both cue indications that the market to buy, the seller will buy in the open position. If there is a break above the price chart moving average can be used to confirm these crosses fireplace (usually two periods MA crosses different indicators. whether the two time intervals from one period to another, add an entry to buy or sell) it to be. Several investors and traders are also indicators to predict future price movements.

Finally, indicators and technical analysis functions for reading the graph, as a mirror image of all events associated with the market reaction is due to the economic fundamentals. Technical analysis is not necessary or does not ignore the causes of price movements, but we can see the performance. Fluctuations in the capital markets in the table is legible capital market reaction. If demand increases and the structure is bullish and when demand decreases then the graph would be bearish.


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