## What is technical analysis?

# What is technical analysis?

On the** international www.onlinescam.net financial markets,** there is a lot of money, a lot of money. left of this, there are major investors reluctant to chance, on what products they set and whether they yield a profit or not.

They determine the asset, the realistic price, **the entry point and the many other factors that characterize a financial** investment strategy and based on hard facts and empirical predictions. It is no different in trading binary options.

## Price chart under the microscope

To provide an important tool for these predictions is the chart analysis, also known as technical analysis. How delve **meteorologists in the measured weather data viewing chart analyst tuition panels** of a value and try on the basis of OnlineScam past development to anticipate a future.

*Here one relies on experience to help interpret the data obtained. The basis for this place statistical and empirical considerations of price charts. As the father of modern Technicals applies the Americans Charles Henry Dow has published his work in 1900 üm around. The economist and journalist draws also responsible for the world-famous New York’s Dow Jones. He developed concepts for the cyclical nature of the trends to see just reign trends.*

A more mathematical strike got the chart analysis with their advancement through the, also based in the US mathematician Ralph Nelson Elliot. **This invented the theory of Elliot Wave,** which should also serve the discovery of market trends.**At the two approaches by Dow and Elliot,** you can already see the two main tools within the technical analysis. These are, firstly, to chart viewing and secondly to the calculation of mathematical indicators.

### Lines and channels Trend Determination

In the chart viewing relying mainly on the visual representations of the courses, of which there are very different forms.** Commonly known and easy to understand for lay people** about the simple line and area charts, in which the different rate positions are connected to the respective measurement periods with a line.

Somewhat more complicated, but also more meaningful, are the bar and candle charts. These courses are presented within a period onlinescam.net/24option/ with vertical figures. To be able to** make a price forecast recurring patterns** and formations are **sought which show up in the course.** Examples include triangles, wedges, rectangles, banners and pennants. This special meanings each be metered.

Apart from these patterns also trendlines and channels are shown in the chart in which you combine the extreme values of a course together to the basic price direction and thus be able to determine the trend.

#### Help from the world of statistics

*A little more focused on numbers approach is the use of mathematical indicators and oscillators. Here we calculate certain indicators should provide information on prevailing trends, trend directions or trend reversals. Known technical indicators such as the moving average, the average directional movement index (ADX) or the Relative Strength Index (RSI).*

During the viewing of chart patterns is still quite possible manually takes you back no later than for the calculation of **indicators onlinescam.net/banc-de-binary/ on specially programmed software.** This chart programs facilitate one hand, the visual representation of the price trend, while you can easily draw** trendlines or channels and calculate the other hand the desired indicators.**