Why choose technical analysis? What are the advantages of technical analysis? How to use technical analysis in forex trading?
To trade forex, you need to use one of the following methods:
- Technical analysis: Use historical price charts.
- Fundamental analysis: Using intrinsic factors.
- Based on news: Using news, analyze the impact of news on prices.
- Based on psychology.
- Or not according to any rules, just according to personal feelings and predictions.
And these are the reasons why I choose Technical Analysis to trade forex:
The goal of forex trading is to predict the movement of prices. Technical analysis fulfills that.
- All information, internal factors, supply and demand, ... are finally reflected through the price chart. Therefore, the price chart is the most authentic, the most reliable. The price chart is the heart and "soul" of technical analysis.
- Many traders in the forex market have had success using technical analysis.
- Human personality often does not change, human behavior and habits in the forex market are no exception. Technical analysis is based on the principle of "history will repeat itself". This is absolutely correct.
- Technical analysis is very flexible. You can use technical analysis to forecast prices for many commodities: Forex, Gold, Oil, Agricultural products, coffee, rice, cashew nuts,... Wherever there is a price chart, you can use technical analysis.
Best regards,
No comments:
Post a Comment