What is technical and fundamental analysis?

Technical analysis in the financial markets is defined as a tool for predicting the price movement of a currency, commodity or stock. This price movement is translated by Japanese charts and candlesticks that chart the movement of the bullish and the bearish price against time.

Technical analysis in the financial markets is defined as a tool for predicting the price movement of a currency, commodity or stock. This price movement is translated by Japanese charts and candlesticks that chart the movement of the bullish and the bearish price against time.

 fundamental analysis - markets - currency - commodity - stock

When did technical analysis begin?

Technical analysis emerged at the beginning of the 20th century when Charles Dow developed a theory that is the cornerstone of technical analysis.
The analysis mainly analyzes and examines price movements and correlates them with the time factor.
This art appeared at the beginning of the 20th century when Charles Dow developed his theory, which is regarded as the cornerstone of technical analysis.
This helps to understand how currency prices move in the markets.
Technical analysis is based on simplification and ease of analysis, not complex and based on technical analysis of price charts.

What is the difference between technical analysis and fundamental analysis?

  • Technical analysis shifts away from the thought underlying the fundamental analysis
  • Does not recognize the concept of market efficiency, which is the mainstay of capital markets
  • Everyone recognizes the effectiveness of the fundamentals of technical analysis. The prices of currencies, stocks or commodities are united by the interaction of supply and demand forces
  • The forces of supply and demand are governed by many variables but the long-term impact is only due to rational variables, but the irrational variables can not continue to influence

What are the theories of technical analysis

1-The share price includes everything:

In this theory, Dow believes that the current prices of a company’s share or currency reflect all information about the company or currency of the country concerned.
Therefore, the current price represents the real price and should be taken as a basis for analysis.
Technical analysis uses information from these prices to discard the market trend in order to predict future prices.

2-Price movement is not entirely random:

Dow believes that the price index is typical (non-random).

Although there are periods where prices are random and prices are always random, it would be very difficult to profit by using technical analysis.
The technical analyst believes that it is possible to determine the typical movement of price, investment and profit taking based on the expectations of its movement.
Because technical analysis can be applied at different intervals it is possible to identify short- and long-term model traffic.
Looking at the charts of a particular company we find that most of the movement in the ascending pattern with periods of random movement or vice versa.
In the midst of periods of random movement there are small, incremental movements within the general upward pattern.
The upward pattern is renewed when the arrow breaks the range of random movement.

What is most important for technical analysis? Technical analysts only care about two things

What are the current prices?

What is the history of the movement of these prices?

The bearish pattern begins when the arrow breaks less than the previous random movement.
What is most important for technical analysis? Technical analysts only care about two things

What are the current prices?
What is the history of the movement of these prices?
The price is the end of the battle between the supply and demand forces of any financial instrument, whether currencies, commodities, indices or stocks.
The objective of the analysis is to predict the direction of the price in the future, unlike the main analysts who are interested in answering the question of why prices have reached what they are?
Technical analysts believe that this part of the equation “why?” Is not needed and the reasons given by key analysts are often questionable.
Technical analysts believe it would be better to focus on “what is the price and the date of its movement?” And lack of interest in the reason.
What makes prices go up? Simply because the demand is more than supply, and the real value of any goods is the amount you are willing to pay in them, so why bother to find out why.

Steps of technical analysis

  • Many technical analysts follow the so-called path from top to bottom. Which begins with the analysis of the big picture (the general indicator of the market), and then the bulk of this picture is then divided to form the basis for the final step of a more focused analysis
  • Such analysis could include:
  • Analysis of the general index of the market
  • Analysis of the sector index to determine the strongest and weakest sectors within the index
  • Analyze each stock individually to determine the best performance stocks within the sector

The unique thing in the world of technical analysis is its diversity.
Since the theory of technical analysis is general theory applicable to anything, so the same theory can be used to analyze any of the indicators mentioned.
You do not need a university degree in economics to analyze charts for market indicators.
Graphs are charts no matter if the duration is two or two years.
It does not matter if it is a chart for a particular stock or for a market index or even for another commodity (as long as it is governed by the principle of supply and demand).
The principle of technical analysis of support and resistance, the typical movement, the random movement and the rest of the technical analysis can be applied to any chart.
Although this seems very easy, we can not say anything about it.
Success in applying this skill requires serious study, taking the time to learn and an open mind.

The basis for technical analysis

  • Focus on price.
  • Supply, demand and price direction.
  • Levels of support and resistance.
  • Price History.
  • Identify entry points in the market.
  • Trends and curves of the market.
  • Average price movement.
  • Bounce cases.
  • Oscillators.

Conclusion

Technical analysis is a sea of information. Traders should begin by understanding the principle of technical analysis and then move on to learn the patterns of price movements on charts,
The fundamentals needed by the technical analyst to start analyzing the price charts.
Draw the important coordinates of the graph.

  • Identify support and resistance points.
  • Identify the supply and demand points.
  • Determination of Fibonacci ratios.
  • Cash Flow Index – MFI
  • Relative Strength Index
  • MACD – MACD
  • Bollinger Bands
  • JAPANESE CANDLES
  • REVERSE PATTERNS
  • MARKET TRACKLINE (TRACKLINE) – TRENDLINES
  • Dow Theory
  • Elliott wave theory
  • Momentum (accelerometer) – MOMENTUM
  • Size Index – OBV
  • Histogram – HISTOGRAM
  • Williams Index – WILLIAMS% R
  • Stochastic – STOCHASTIC
  • Price Channel Index – PRICE CHANNEL
  • nvelope indicator – ENVELOPE
  • FROM WOODIES
  • From CAMARILLA
  • From Demark – DEMARK

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Last moves for the most important cryptocurrencies in the market for the day 5/7/2019