Sunday, January 19, 2014
Technical Forex Analysis
Technical Forex Traders use Forex trading information (such as previous prices and trading volume) along with mathematical indicators to make their Forex Trading decisions. This information is usually displayed on a graphical chart and is updated in real time throughout the trading day. Technical Forex traders believe that all of the information about a Forex market is already included in the price movement, so they do not need any other fundamental information (such as earnings reports). There are many different types of charts and many different mathematical indicators. Some indicators are better suited to short term Forex trading, and others are better suited for longer term trend following Forex trading. Individual Forex traders are usually technical Forex Traders. Technical Analysis appears to have been used at least 200 years ago in Japan. Modern Technical Forex Analysis is usually performed by the Forex trader interpreting their charts, but can just as easily be automated because it is mathematical. Some Forex traders prefer automatic analysis because it removes the emotional component from their Forex trading, and allows them to take trades based purely on the Forex trading signals.