Technical Analysis In Forex Markets
Technical analysis includes support and resistance levels where currency pairs tend to find lows and highs. At the same time, price
momentum indicators often signal where exchange rates are running out of
steam on the up and the downside. Technical analysis can breakdown at
times when black swan events occur.To get more news about
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Technical analysts look for areas of price support and resistance on
charts. Support is a price on the downside where a market tends to find
buying that prevents the price from falling further. Resistance is just
the opposite, as it is the price on the upside where a market tends to
experience selling that prevents it from rising further. When a price
moves below support or above resistance, it often signals a reversal in a
bullish or bearish price trend.
Technical analysis provides a roadmap of the past in the quest for
insight into the future. Many market participants use technical analysis
to make trading and investing decisions, which often creates a
self-fulfilling prophecy as a herd of transactional activity can create
or impede a price trend. Technical analysis is a tool that foreign
exchange traders use to project the path of least resistance of exchange
rates.
