Technical Analysis

On the role of proportions by using technical analysis of the most common type of analysis is fundamental for 95% of existing traders, is a technical analysis. This type of analysis is based on several postulates, such as repetition of history and inertia of the price trend. Recently Wayne Holman sought to clarify these questions. All these laws are still present in the Dow Theory, which is a technical analysis in its purest form. Analyzing the chart with "technology", trader is looking for specific patterns, which, in essence, are the ones repeating mikrostsenami stories, which were discussed in the first postulate. Analyzing the behavior of prices within the time interval, which manifests a particular figure, as well as considering the news background, in which its formation occurred, it can be very reliable conclusion about the future behavior of prices. Successful trading world currency market has many components. This psychological aspect, and technical training trader, this is a specific, intuitive instant apprehension which is given many years of practice. Perhaps difficult to enumerate all the components of success, however, judging from the purely mathematical point of view: – the success of transactions is determined by only two parameters, which, unlike the above can be clearly expressed numerically.

This is the probability of positive outcome of the transaction and the amount of risk. The interaction of these two values determines the resulting trend in the trade of the deposit. Thus, all the richness of approaches to forming a market strategy can be reduced only to two components: capital management policies, or otherwise – risk management and improve the reliability of forecasts.