Essence of technical forex analysis.

Technical forex analysis can be generally defined as a method of forecasting prices, based on mathematical rather than economic computations. This method was created for purely industrial purposes, namely income while playing at first in the securities markets, and later in the futures. All methods of technical analysis created separately from each other and only in the 70s were integrated into a single theory with the general philosophy, axioms and basic principles.

Technical analysis - a method of forecasting prices with the graphs of market movements in the previous periods.

The practical use of technical analysis implies the existence of axioms.

Axiom 1. Movement of the market account for all (or rates account for all).

Any factor that affects the price (for example, the market price of the goods), - economic, political, psychological - is taken into account in advance and is reflected in its schedule.

Axiom 2. Prices move directionally.

This assumption is the basis for all methods of technical analysis. The main task of technical analysis is to determine the price trends (or tendencies or trends) for use in the trade.

Identify trends that gives the Dow, is as follows: when the rising trend (bullish trend) of each successive peak and each subsequent decline over the previous one. By other words, the bullish trend should be consistently with the outline of the curve rising peaks and troughs. Accordingly, the downward trend (bearish), each successive peak and decline will be lower than the previous one. Such definition is a fundamental trends and serves as a starting point in the analysis of trends.

There are three types of trends - bullish (upward price movement), bearish (downward price movement) and side (the price is almost not moving). All three types of trends are not in pure form, as the movement of "straight" on a price chart can be found very rarely.

The trend is valid as long as the files a clear signal that it has changed.

Axiom 3. History repeats itself.

Analysts have suggested that if a certain type of analysis worked in the past, it will work in the future, as It is built on a sustainable human psychology.

Technical analysis classified into two methods:

- Graphic

- Math - computer analysis.