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| By N2H | |||
Investors use mainly four kinds of charts depending on their skills and the information they are seeking. The different chart types which are used in technical analysis are line chart, candlestick chart, bar chart and point and figure chart.
Trend is the most important concept in technical analysis. A trend is the direction in which the market or a security is headed. The movement of high and low price movements constitutes the trend. For example, uptrend means series of higher lows and higher highs. On the other hand, downtrend means series of lower highs and lower lows.
The calculations based on volume and price of a security used to measure things like money flow, volatility, momentum and trends are known as Indicators. They are used as secondary measure for calculating actual price movements as well as for adding any extra information with the security analysis.
What is technical analysis?
Technical analysis is used to predict the future movement of prices through examination of the past market data. Technical analysis is used by most of the traders to obtain an insight into the history of an investment’s prices. All traders, even those who are not experts in Forex trading always consult a chart to make sure that they are trading at a fair price or selling at cyclical top.