Technique and method of fundamental analysis are the most used by profit-oriented people in Forex markets like other money markets and capital markets. Investors try to make profit from movements in parities by associating basic developments with long - medium - short terms.
Technical methods are the same in almost every market. These methods vary in fast moving markets like forex. Every person find his own method in time. We always say that while doing this, screen time should be increased as far as possible if making profit is wanted. This is unquestionable and valid in learning stage. Screen time can be reduced according to investor’s procedur after understanding market movements. If an investor, who transacts actively, spends time in front of screen all day long like in the learning stage, the investor can come across adverse effects of this. So, to balance get ahead of technique and basic analysis. It is necessary to be ready psychologically before making these analysis.
The most important technical analysis methods:
- Supports – resistances
- Fibonacci Retracement Levels
- Following of Moving Averages
Trend tracking is the most important and prior condition in Forex market like in the other markets. Before transact, we need to determine short- middle- long terms. While transacting, we need to have position parallel with them. Being on good terms with trend is useful for investors. Changing trend is bussiness of big portfolio. So the other investors have to move on parallelly with determined trend. It is possible with this strategy.
Middle or long term trend are determined. If it is upward trend, in upturns of support market, it is necessary to have position in the direction of purchase. Some investors want to have a position in the direction of selling from resistances, and they want to catch turning of trend. However, this is just a big and unnecessary risk. The most important rules are be patient and have a position on the side of trend in trend movement.
Support – resistance levels:
Before transaction in the markets, support and resistance levels are need to determine transparently, and it is necessary to continue according to this when related levels are approached. It is agree with trend-tracing which was mentioned before. An investors , when he knows general trend, he can use trend effectively if he knows support and resistance levels. But, if these points are determined wrongly, trend will not be useful because it has position in incorrect points. It will be useful closure of position accoriding to movements in resistance levels by purchasing , accommodating under a few ticks of support when it is approached to support. But, making purchase by thinking like “ there is support and markets will turn up sooner or later” is a big mistake. Let the markets approach to the support and turn up again. Maybe a number of tick profits are missed in case of purchase with the upturn, but risk is decreased. You can use total opposite of this strategy in downtrend
Fibonacci retracement levels:
Fibonacci retracement levels work succesfully in Fx markets. It helps to determine where adjusting ends and what should be expected to open a new position in trend direction. It can be applied on almost every term. It is one of the most important factors to benefit from trend.
If moving averages are used correctly, they contribute to see direction in market. In Fx markets, Especially, “Weighted Moving Average” contributes to determine directions on 30 minute periods. When shorter term moving averages intersect longer term moving average, it is expected that movement continue in parallel with the intersection. It is accepted that trend in the expected direction and position is taken in the direction.
Moving averages is very important as support- resistance level. Moving average numbers are significant in termination of a trend movement’s recession. For example, 34 Weighted Moving Average determines an important support-resistance point in 30 minutes graph. It can be expected that market hits to this level and it turns back to it’s movement in the trend direciton. It is accepted that trend is over for that moment and turn down.
- Date: 25 December 2016 Sun 21:43
- Last Added
French Presidential elections are affecting the positive atmosphere on Euro
French Presidential elections are affecting the positive atmosphere on Euro...
Inflation rate is testing record levels in Turkey
Inflation rate is testing record levels in Turkey...
Non-farm payrolls data of the USA increased
Non-farm payrolls data of the USA increased...
Fed's politics interest decision gives direction to the global markets
Fed's politics interest decision gives direction to the global markets...
Oil market is trying to find a direction
Oil market is trying to find a direction at the last times....