Understanding of technical analysis or indicators
We can say that all traders use technical analysis is rich, but not all dealers carry out technical analysis, although extensive teaching assistant is the most appropriate way trading foreign exchange market. It is also worth noting that a fundamental role, indicating whether the price up or down. This gives you the advantage over other traders.
Technical analysis is very useful for some reasons
1) It is a number. All information and its market and currency traders said the price represented.
2) it helps to forecast trends and foreign exchange market is very 'fashionable'.
3) a particular chart pattern is consistent, reliable and repeatedly. T.A. help us to see them.
There is a way, a comprehensive view of technology analsysis (wish I had a dollar for every time I said: 'Technical Analysis'). We all know that trends in price fluctuations. Research shows that those who trade the trend and 'greatly improved their chances, a profitable trade.
Trends to help you realize the overall market direction, and often saved our less profitable entry point. I attended a two-day course cost me 2,500 U.S. dollars and Australian dollars of the most important thing I learned from it takes discipline and emotional control. Therefore, the basic content, in the next three to four articles, I will cover it all. Therefore, learning the tools of trade of technical indicators and their applications will help you do what diagnostics market, but even so, you need UPS Yuqixiaxiang, Mao Yi and emotional control.
Remain in the trend, according to the price.
Explore the currency of the price. If the EUR / USD 1.4224 and 1.4180, then 1.4090 and then to enter the market decline. Only concerned with what their market is doing what is impossible. Listen to the market and the indicators will tell you to retain them.
Moving average.
Tell me your price at a specific time interval in a certain period. They are called moving because they give the final price, calculated on the basis of the average measurement time selected.
They lagged behind the market, so a pair of ever-changing trends suggest that the use of a shorter average like 5 or 10 day moving average. By short-term and long-term horse can detect short-term buy signal, by moving the direction of the long-term average upward. Or break down when the sell signal. For example, you could use the 5-day moving average and the average 20 days or 40 days and 200 days.
There is a simple moving average, linear weighting is more important is to provide new or weighted price index. The latter is a favorite because it believed that all the prices in one period, but stressed the importance of the recent price changes.
MACD indicators
Under the moving average, MACD indicators of the differences between the moving average of 26 drawn and 12 day moving average, and 9 days as a trigger line. If you find MACD indicator is still positive, when the market decline may be a strong buy signal. Opposite also applies.
Bollinger Bands (sounds like an elastic band)
Prices tend to remain between the upper and lower bands. They expand and contract more depending on the prevailing market volatility. A sell signal, the moving average over Bollinger bands, and vice versa for the buy signal. Some traders use it in combination with the RSI, MACD indicators, CCI, and the interest rate changes.
Fibonacci retracement
Cycle exists in nature interpretation and application of technical analysis to find the market trends. After the price increase is often the most moving, sometimes all be traced back to the original. Support and resistance levels often occur near the Fibonacci retracement level.
Relative strength index
Relative Strength Index measures the activity to see whether the market is overbought or oversold. This is a key indicator of the market will help to show what (great!). Relative strength index is overbought Ahigher number (so pessimistic about the changes expected) and the lower figures show oversold.
Successful traders generally use 3 or 4 signals, to provide more conculsive signal before making a transaction.
Always remember, "If in doubt, stay in it!." Technical analysis does not take into account the political news, economic profile, a country or a basic regulations and requirements.
Technical analysis can help us to know how much of the trade risk. How and when to enter the market, how out of business profits or minimize losses.
Be nice trading...
Bretton Woods Agreement
Agreement Bretton Woods Agreement was founded in 1944 committed to a stable monetary policy to avoid the free cash to another country to build. Avoid currency speculation in the world, as the gold exchange standard - prevailing from 1876 until World War I, the control system in the world economy. By using the gold exchange, currencies in a new era for the company because the shields of gold prices. In ancient times by kings and dictators of totalitarian transactions using gold as the main and lower the value of money causes inflation.
However, the standard used for exchange and not a lack of "broken." As the economy strengthens, imports of goods from abroad increased rapidly. But if the economy weakens, the national gold reserves needed money to buy foreign release performed, the result is a depreciation of the currency, interest rates fell and the economy began to slow down operations and cause a recession. Final goods rose more than the normal level, and of course the attraction of selling goods to other countries increased. This has caused huge buying power and an increase in the price of gold rose high at the moment, interest rates fell to its lowest point for creating wealth for the economy. The use of gold as a standard transaction that applies until the end of World War end the flow of transactions and gold are now free to move.
After the war the Bretton Woods agreement was established. Countries participating in the agreement agree to their own currency to maintain security by an amount equal to the dollar and the appropriate level of gold as needed. The lower the price of copper has been banned in their own language in transactions with foreign countries to facilitate, and are only allowed for the price of less than 10% lower. In 50 years of the 19th century, when the currency of international transactions was extended to the capital services for post-war reconstruction and rehabilitation was transferred en masse. This has led to foreign currency exchange rates destabilize established in the Bretton Woods agreement.
The Bretton Woods pact finally abolished in 1971, and currently the U.S. dollar (USD) can be used instead of gold (gold). In 1973, the currency advanced countries were freely floating, controlled resources at this level depends on the strength of the demand-supply (supply and demand) from the economy, they are a dynamic force in the foreign exchange impact. The price of the pair is recommended every day, with a large number of transactions, speed and price unchanged for 70 years from the 20th century, the application of new markets for financial instruments, which led to the earlier rule was abolished and the period of gradual liberalization of world trade.
In the '80s, the amplitude of movement of capital thanks to the explosive growth of the computer industry and technology, the market continues to grow in Asia, Europe and America ... The number of cash transactions in the foreign exchange market increased dramatically from 70 billion dollars per day to 1.5 trillion U.S. dollars a day two decades later.
