Technical analysis of the Forex market is a fairly broad concept that includes the analysis of the price chart using a variety of methods and approaches, including graphical, indicators, oscillators, and so on. At the same time, the so-called figures of technical analysis, albeit not in isolation, are used by almost all traders to increase trade efficiency.
The figures of technical analysis on Forex can be very different, among them a triangle, a flag, a pennant, a head with shoulders and so on. You can find dozens of different descriptions and approaches to identifying these very figures, but in practice it often turns out that an inexperienced trader, trying with all his might to find a particular figure, sees it where there really is no figure or there is a completely different signal. / p>
As a result, the wrong decision is made, and the entrance to the market is carried out either at the wrong moment or in the opposite direction from the future price movement. The same can be said about the situation when the chart draws a certain figure, but the person does not see it and does not use the favorable moment to open a position.
Graphic figures on Forex
What needs to be done to successfully use graphic shapes in Forex? First of all, read a lot of literature and draw certain conclusions for yourself. We all imagine what a triangle is and we know that when the price chart draws such a figure, the market is in the flat and can go both up and down, but depending on the aspect ratio there is a high probability of movement in one direction or another. / p>
In this case, it is worth emphasizing that generally accepted signals may not work, since fundamental factors also influence the market. Therefore, we should speak only about the likelihood and necessity of using other analytical techniques in order to obtain a reliable result.
Also, you must have enough experience to:
– do not look at the schedule biased and not see the figures where there are none;
– learn how to properly approach the received signals and not make hasty conclusions;
– develop a system for a comprehensive analysis of the information received in order to eliminate false analysis results.
Thus, it is necessary to conclude that all the figures of technical analysis can and even should be used, but this requires deep knowledge and relevant experience, since the classical figures, which tell textbooks and write on many sites, do not always appear on a real chart.