How Do You Learn Forex In Technical Analysis?
Technical analysis is all about historical price action. It is based on the notion that historical analysis will provide clues into future price movements. The Forex, or currency market, is open 24 hours,so there’s a great deal of information about a particular currency pair. It is also the most liquid asset in the world, making the difference between the bid and the ask price (spread) very small. Profitable traders must find ways to capitalize on small price movements and technical analysis is one of the best ways to analyze those. Review the definition of a currency pair. Forex is quoted in currency pairs. The first currency is the transaction currency and the second is the quote currency. The quote tells you how many of the quote currency are needed to buy one unit of the transaction currency. Work through an example price movement. EUR/USD 1.2000 means that one euro is exchanged for 1.2000 U.S. dollars. If the quote moves from EUR/USD 1.2000 to EUR/USD 1.2010, the euro is getting s
