Community Forex Questions
What are the 4 basics of technical analysis?
Four Fundamental Principles of Technical Analysis
Markets alternate between expanding and contracting their ranges.
The continuation of the trend is more likely than the reversal.
Trends can end in two ways: climax or rollover.
Price follows momentum.
Markets alternate between expanding and contracting their ranges.
The continuation of the trend is more likely than the reversal.
Trends can end in two ways: climax or rollover.
Price follows momentum.
The four basics of technical analysis are price trends, support and resistance levels, volume, and moving averages.
1. Price Trends: This involves identifying the direction in which the price of a security is moving over time, whether upward, downward, or sideways.
2. Support and Resistance Levels: Support is the price level at which a security tends to stop falling, while resistance is where it tends to stop rising, helping traders determine entry and exit points.
3. Volume: Volume indicates the number of shares traded, reflecting the strength of a price move. High volume suggests strong investor interest and potential for continuation of a trend.
4. Moving Averages: These are used to smooth out price data over a specific period, helping to identify trends by filtering out short-term fluctuations.
1. Price Trends: This involves identifying the direction in which the price of a security is moving over time, whether upward, downward, or sideways.
2. Support and Resistance Levels: Support is the price level at which a security tends to stop falling, while resistance is where it tends to stop rising, helping traders determine entry and exit points.
3. Volume: Volume indicates the number of shares traded, reflecting the strength of a price move. High volume suggests strong investor interest and potential for continuation of a trend.
4. Moving Averages: These are used to smooth out price data over a specific period, helping to identify trends by filtering out short-term fluctuations.
Dec 05, 2022 13:06