ACM Forex in English
ACM Forex in French
ACM Forex in Spanish
ACM Forex in Italian
ACM Forex in Greek
Click here to go back to the main page of ACM
Dealing room services Forex Market Analysis tools Ressources About us Contact us

 



 
Technical analysis
Technical analysis is concerned with what has actually happened in the market, rather than what should happen. A technical analyst will study the price and volume movements and from that data create charts (derived from the actions of the market players) to use as his primary tool. The technical analyst is not much concerned with any of the “bigger picture” factors affecting the market, as is the fundamental analyst, but concentrates on the activity of that instrument’s market.

Technical analysis is based on three underlying principles:

1. Market action discounts everything

This means that the actual price is a reflection of everything that is known to the market that could affect it, for example, supply and demand, political factors and market sentiment. The pure technical analyst is only concerned with price movements, not with the reasons for any changes.

2. Prices move in trends. Technical analysis is used to identify patterns of market behaviour which have long been recognised as significant. For many given patterns there is a high probability that they will produce the expected results. Also there are recognised patterns which repeat themselves on a consistent basis.

3. History repeats itself. Chart patterns have been recognised and categorised for over 100 years and the manner in which many patterns are repeated leads to the conclusion that human psychology changes little with time.

List of categories of the technical analysis theory:

· Indicators (Oscillators, eg: Relative Strength Index RSI)

· Number theory (Fibonacci numbers, Gann numbers)

· Waves (Elliot wave theory)

· Gaps (High-Low, Open-Closing)

· Trends (Following Moving Average)

· Chart formations (Triangles, Head & Shoulders, Channels)

 

 

 

Open a live account   Register for free 30 day Demo
Live forex trading platform   Demo forex trading platform
Go to market track
Preview forex trading platform
Request a call back
Advantages of trading Forex with ACM
     
           
Copyright 2002, all rights reserved