Forex encyclopedia

We can divide all of the technical analysis methods into several groups: - Chart trading methods. We can predict the price movement just using a price chart or its transformed image. Traders mark resistance and support levels, channels and lines. They also apply a range of technical analysis patterns. - Technical indicators. Traders have been using most of them from the beginning of the last century. However they are commonly used only last ten years due to the Internet and the software which can calculate them easily.There is a wide range of forex technical analysis indicators in the marketplace.
A number of reversal patterns is indicated in Forex: Head and Shoulders, Double top, Double bottom, Triple top, Triple bottom, Diamond. Head and Shoulders Top – is a classical reversal pattern of technical analysis, which is formed following to a long upward trend. The model is considered to be fair reliable and is often formed. But despite above-mentioned, many beginning traders do not manage to take profit using this graphic pattern. The reason is that positions are opened prior to forming this model. Let's figure out the structure of the figure and its formation on the chart of trading terminal. The model consists from three subsequent price extreme points, the middle one is higher than others (head), and the rest two are below the middle one and are roughly equal (shoulders). All three uphills are supported by the neck line.
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Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
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