What is Forex Technical Analysis?

Technical analysis method is an important indicator used by investors in order to predict the price trends of investment instruments not only in forex markets but also in all financial markets. Technical analysis is an analysis used to predict future price changes based on past price changes based on rational calculations.

Technical analysis is based on the principle that prices move as a whole in relation to each other. In other words, changes in prices follow each other in a continuous cycle. Although fundamental and technical analysis used in the markets may seem different from each other, they are in fact interconnected. However, the difference between them is that in fundamental analysis, investment instruments are evaluated based on economic information, while in technical analysis, they are evaluated based on past price changes. If you want to get more detailed information on both technical analysis and fundamental analysis in Forex markets, you can benefit from the free trainings we offer as Integral Investment. You can contact us at a time that suits you from the training calendar on our website and receive your training without changing your location.

What should be considered in Technical Analysis?

1- Changes in prices take into account all factors affecting the market. All economic, political or social factors that will affect price trends have already been taken into account and reflected in the price charts of investment instruments. In short, the price is actually an important indicator that reflects all the factors affecting the market.

2- Prices always change in a certain trend. This analysis is based on the "Dow Theory". Dow theory is based on 6 basic principles. These are as follows

• Indices contain all factors.
• There are 3 basic trends (direction of the index) in the market.
• Each trend consists of 3 phases.
• Trading volume should support the trend.
• Indices should support each other.
• The direction of the trend remains the same unless there is a signal that ends the current trend.

3- 'History repeats itself', meaning the past repeats itself. In other words, one can predict where prices will go by looking at past changes.

Charts are the most basic information tools in technical analysis. The OHLC chart brings together the opening, closing, high and low price information for a given time period. This provides a source of information about how prices will be in the future. Candlestick charts show the difference between the opening and closing of prices in the form of bars in many ways such as minute, hourly, daily or monthly. For technical or fundamental analysis, you can get live analysis support from the expert team in our Research Department every weekday between 8:30-17:30.