Technical analysis is used as a way to guess the future move to market trends through the study and search for data and historical market data including the most important ones which trading volume and price levels.
The traders using trading information as the size of trading last and price levels in order to allow them to make business decisions deliberative sound contrast to the use of information on mathematical indicators, this information is displayed unusual and direct by trading the same market through graphs in order to gain sufficient experience which enables you to take the right decision regarding the timing of the sale support or buy it.
– Dow Theory:
The Dow Theory is the basic core of technical analysis and which split them curricula and other analytical and patterns in the world of technical analysis, called the theory of Charles Dow name and is editor and founder of the Wall Street which is the basic means of technical analysis modern component, Charles Dow theory is based on three pillars, namely:
1. The price is a reflection of the rebound and AVI and integrated both the energies and influences the market, so the data and all data and market effects are reflected and bounce at any time.
2. We can fix prices in the movements of certain frequencies and thus transmit them and change them to the strong potential to earn profits and gains.
3. Fluctuations and changes in price levels changed to restore itself over the years and history.
– Pros Technical Analysis:
Technical Analysis needs and requires less than information fundamental analysis requires, as the trader can get all the necessary needs of the trading volume and price information, that the issue of the time of entering the process of trading and the start of a new deal be more easily when we are using technical analysis, because most of the focus is on wasq set and identify trends and implications.
– Disadvantages Technical Analysis:
Probably sometimes that technical analysis is changing to turn into a mere speculations and predictions, since when does a lot of traders and investors use of similar and identical features tools and the same connotations and principles moved away together between demand and biting then it is possible that this thing leads to price levels contained in the same direction as expected.
Fundamental analysis and / or technical:
– The technical analysis of the most effective and the best ways and means given to guess and anticipate the actions of and trends in the financial market, as sure and proved that this type of active and vital and productive analysis and is being used in a popular and acceptable and sustained by traders and investors in the global capital markets. When we integrate technical analysis with fundamental analysis, the integration of Monday will have a positive impact on the technical analysis of the true vital and Saeb more and more true.