O que é análise técnica?
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1. What is Technical Analysis?
Technical analysis of the forex market is a method of evaluating currency pairs by analysing the historical movement of the chart. Its goal is to predict future price movements based on past events.There are several tools and strategies to technically analyse the market.
a) Technical analysis based on chart history.
A chart in forex is a visual representation of the price movement of a currency pair over time.
Main Types of Charts in Forex:
1. Line Chart
The line chart is the simplest type of chart. It only shows the closing price of a currency pair over a specific time period.
2. Bar Chart
The bar chart is slightly more complex than the line chart. Each bar
displays price movements for a given time period.
3. Candlestick Chart
The candlestick chart is the most popular type of chart in technical analysis because it provides a clear and visually transparent view of the current market activity.
What do (Candlestick) charts tell us?
Charts provide information about the market trend, i.e., the direction of the price over time.
Based on this information, we can get an idea of how the market is currently evolving and better predict future movements.
Trend Movements:
- Uptrend (Bullish Trend): Prices are regularly increasing over time. The chart shows higher highs and higher lows.
- Downtrend (Bearish Trend): Price movement is seen going down. The chart will show lower highs and lower lows.
- Consolidation (Sideways/Range-bound): Here, the market moves within a certain price range, with the chart appearing to move sideways without a clear upward or downward trend.
Within a trend, there are two types of movements:
a. An impulse: A strong price movement in the direction of the current trend and supported by volume and duration.
b. A correction: A temporary price reversal that is less pronounced (often shorter than an impulse), and typically serves to restore balance before the trend continues.
Take advantage of the trend:
In trading, there is a well-known rule: "the trend is your friend." This means we should look for trade entries in the direction of the trend (especially after corrections).