The most popular among individual investors a tool to predict future changes in the market is technical analysis. Its popularity owes certainly simplicity and speed with which you can learn it. On the market there are also many publications on it and all the portals of economic devote separate sections. The simplicity of this art not a science, it is also its disadvantage. Most market players using the same methods of investment and prognostic causes that they become ineffective.
Technical analysis is the art consists in forecasting future exchange rate changes only through observation charts of price and building on the basis of indicators and price formation. Technical analyst does not therefore focuses his attention on macroeconomic data, the information flowing from the financial statements of companies. It focuses only on the graph, since according to the theory of technical analysis, the price is a reflection of all of this information. The adoption of such a rule, legitimate or not, is the cornerstone of shaping the entire technical analysis. All indicators and trading systems based on technical analysis, based on market prices rather than macroeconomic data and financial statements. Continue reading