Axiom technical analysis

Axiom technical analysis.

As we know, in any case, there are things that do not require additional evidence is applicable and technical analysis of the forex market.

Axiom of technical analysis – it is the conclusions reached by many generations of traders on the movement of foreign exchange rates and assessment of the situation in the various markets.

They are universal for forex, and for stock and commodity markets.

All findings are grouped into several groups, so the axioms themselves are not so much:

Price includes all – this axiom you can find in almost every textbook on technical analysis or forex. She argues that the price analysis allows to obtain complete information and to properly assess the condition of the market.

The price includes information on the latest developments, the price expresses the demand and supply of trade tools, find the display – the social, political and economic factors.

• Price has a direction – rate may rise, fall or move horizontally, but the direction is always there. Even when the flat, the price is still changing, but these movements are not very noticeable. That is the direction of the price plays a decisive role in choosing the direction of transactions and is the main subject of analysis.

• History repeats itself – this axiom is much broader than simply the statement that in certain time intervals course comes to similar values. There is more talk about the emergence of regularities in forex, when a similar event caused some market reaction. For example, an increase in inflation – is depreciation.

Knowing how to led the price themselves in a particular situation can predict the direction of the trend with repetition thereof in the future.

Correct perception of these axioms guarantee you a successful trading on the forex and receive substantial profits.

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