Foreign exchange technical analysis is to change the foreign exchange price daily and using the graph to judge the length of the price and then buy or The best time to sell. It may be difficult for newcomers who have just entered the foreign exchange market to understand. So let's first understand what foreign exchange is?
foreign exchange refers to various means of payment for foreign debt and debt settlement in foreign currency.
1. Dynamic Meaning: convert a country's currency into another country's currency and use international credit instruments to remit to another country, so as to pay off the transaction process of the creditor's debt relationship formed by the two countries due to economic and trade exchanges.
2. Static Meaning: Foreign exchange is a means of payment for international settlement expressed in foreign currency. Such payment means include credit instruments and securities in foreign currency, such as bank deposits, commercial drafts, bank drafts, bank checks, foreign government treasury bills, and long-term and short-term securities.
What is technical analysis?
Technical analysis refers to the past performance of the exchange rate trend of the foreign exchange market, using technical analysis tools to predict the future trend of the exchange rate and determine the predictive analysis method of the market entry and exit strategies. It is aimed at predicting the future trend of market price changes, using the graphs, charts, forms and indicators of market behaviour (price and trading volume of the foreign exchange market) as means, using theories of mathematics, statistics, and price to market behaviour. Analytical studies conducted.
However, experienced foreign exchange traders are more admired for technical analysis. The reason is very simple. The factors affecting the exchange rate are ever-changing. No one can grasp all the information, and the market trend is inclusive. Therefore, the trader only needs to study the technical graphics. This is why technical analysis is popular in the foreign exchange market.
I Manisha, Market researcher highlighting the topic of "What foreign exchange technical analysis?" Also, we provide Forex tips and Currency tips