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Username: Maria

Rating:
Guru Stars

Asked to: Chaoxiang Lee

Date Created: 07 Dec 2014
Category 46
Tag forex-article
Question What is the technical market analysis?
Advice from Guru
Hello Maria,

Technical analysis is a study of evaluating market price movements that helps to predict the future trend.

Generally, this analysis is based on studying charts.

In the technical analysis the main forecasting criterion is a price, a volume is also taken into account. Besides, an open interest is considered on condition of the futures market assessment. Two last-mentioned criteria are considered for the confirmation of the correctness of the price movement direction.

The technical market analysis is based on the idea of repeated price patterns. In other words, if the price pattern has been repeated several times in the past, so, it is quite possible that the price will move the same way under similar conditions in the future.

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