The primary functions of technical analysis in Millennium Trader 4 are to forecast and analyze the historical prices produced by any financial markets by using charts or quantitative techniques.
There are many different methods and tools utilized in technical analysis (a list of which is below) but they all rely on the same principles, namely that price patterns and price trends exist in the market that can be identified and exploited. The realm of technical analysis has been expanded further by market participants. New theories and tools are produced and existing tools are enhanced.
Technical Analysis is based on three beliefs:
Action in the market
This means that the actual price is a reflection of everything that is known to the market that could affect it, for example, supply and demand, political factors and market sentiment. The pure technical analyst is only concerned with price movements, not with the reasons for any changes.
Price move in trends
Prices can move in one of three directions, up, down or sideways. Once a trend in any of these directions is in effect it usually will persist. The market trend is simply the direction of market prices, a concept which is absolutely essential to the success of technical analysis. Identifying trends is quite simple; a price chart will usually indicate the prevailing trend as characterized by a series of waves with obvious peaks and troughs. It is the direction of these peaks and troughs that constitutes the market trend.
History tends to repeat itself
To a technical analyst, the human characteristics of the market might be irrational but nonetheless they exist. Because investors' attitudes often repeat, investors' actions in the marketplace often repeat as well. I.e., patterns of price movement will develop on a chart that a technical analyst believes have predictive qualities.
Technical analysis is always primarily concerned with price trends. Anything that can influence the price trend is of interest to a technical analyst. As an example, many technical analysts monitor surveys of investor enthusiasm. These surveys attempt to gauge the general attitude of the investment community to determine whether investors are bearish or bullish.
A number of technical indicators have been used in Millennium Trader 4. When analyzing the indicators ,one can come to the conclusion about further movements of the quoted products. For a more detailed description of the indicators, analyzing price charts and volumes of trading, click here.
There are many different methods and tools utilized in technical analysis (a list of which is below) but they all rely on the same principles, namely that price patterns and price trends exist in the market that can be identified and exploited. The realm of technical analysis has been expanded further by market participants. New theories and tools are produced and existing tools are enhanced.
Technical Analysis is based on three beliefs:
Action in the market
This means that the actual price is a reflection of everything that is known to the market that could affect it, for example, supply and demand, political factors and market sentiment. The pure technical analyst is only concerned with price movements, not with the reasons for any changes.
Price move in trends
Prices can move in one of three directions, up, down or sideways. Once a trend in any of these directions is in effect it usually will persist. The market trend is simply the direction of market prices, a concept which is absolutely essential to the success of technical analysis. Identifying trends is quite simple; a price chart will usually indicate the prevailing trend as characterized by a series of waves with obvious peaks and troughs. It is the direction of these peaks and troughs that constitutes the market trend.
History tends to repeat itself
To a technical analyst, the human characteristics of the market might be irrational but nonetheless they exist. Because investors' attitudes often repeat, investors' actions in the marketplace often repeat as well. I.e., patterns of price movement will develop on a chart that a technical analyst believes have predictive qualities.
Technical analysis is always primarily concerned with price trends. Anything that can influence the price trend is of interest to a technical analyst. As an example, many technical analysts monitor surveys of investor enthusiasm. These surveys attempt to gauge the general attitude of the investment community to determine whether investors are bearish or bullish.
A number of technical indicators have been used in Millennium Trader 4. When analyzing the indicators ,one can come to the conclusion about further movements of the quoted products. For a more detailed description of the indicators, analyzing price charts and volumes of trading, click here.
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