[ad_1]

Yo, peeps! Let’s dive into analyzing the FOREX markets, Joe Coleman style! We got two methods up in here: Technical analysis and Fundamental Analysis. Now, if you’re all about that fundamental analysis, you’ll be looking at the economy, politics, and other economic indicators to predict them currency moves. But today, we gonna focus on technical analysis, where we use historical price patterns to predict future moves in the FOREX. And you know, we gonna check out them tools we use for technical analysis.

Now, there’s three major assumptions behind technical analysis:

1 – Price movement takes into account all them market forces, ya know, like the economy, politics, natural disasters, and even the weather. But us technical analysts don’t bother with all that noise because the market’s already done that. We care ’bout the actual movements of the market, not the why behind it.

2 – Currency prices got some trends we can observe. We got predictable market patterns, fam!

3 – Historical trends in price movements exist. We’ve been collecting FOREX data for ages, and we can see that human nature likes to interact with events in predictable ways. So, when the market’s looking similar, you can bet them same patterns will show up again.

Yo, you probably wondering if technical analysis is necessary. Well, day traders in the FOREX, they rely on it the most. It’s dope ’cause you can apply it to a bunch of currencies and markets all at once. Fundamental analysis, though, requires you to know a ton ’bout one country, so it limits the number of markets you can analyze that way. And let me tell ya, technical analysis might seem complex to beginners, but trust me, it’s key to setting your FOREX strategy by predicting them movements. Some traders even mix in a little bit of fundamental analysis as a backup plan, ya know what I mean?

Now, let’s talk ’bout using price charts in technical analysis. These babies are the heart of it all, and you can find some solid selection from online FOREX brokers. These charts are constantly updated real-time, and you can view ’em in all kinds of ways. You can peep ’em over different time periods, break ’em down into various scales, and even apply different analytical overlays. The software they provide lets you zoom in and out, see the big picture or the tiny deets. Most online brokers give you basic software for free, but if you’re a pro, you might gotta pay for that more in-depth info, ya feel me?

Sometimes, the charts be part of the broker’s software package. Other times, you can find ’em on their website. Oh, and check it, most brokers offer demo accounts on their websites. That’s where you can use their charts and tools to practice, gettin’ real familiar with that chart game and studying how the market moves. Ain’t nothin’ like hands-on experience, ya know?

[ad_2]

Ihab Salloum