Technical Analysis: Unfold and delve into the Forex Chart to find the secrets

Whenever we open a chart to look into it then we have to focus on the key point of interest. We have to take into account everything that we see in terms of price action and the price action means how the price moves in the market relative to where it was before, to the history and also relative to the structure of the market.

So we can start with the basics and the obvious things that we see in an online currency trading Dubai, the earliest things that we see is that we have price which was expensive and we could see a price that is cheap. Of course we want to sell at the most expensive price because we have to make our profit.

So as a basic concept we have two reference points at the same time, while many time we can observes that between these two reference points at the same time we can see that between those two points the market moves, and in swings it, moves sideways and sometimes it moves slowly sometimes it moves quickly.

The concept of three states

Now we have three states that the market always moves. The first state is a ranging market or what is called consolidation. Its other name is also accumulation and where we can see on a chart whilst the market moves sideways. These sideways are called ranges or accumulations of orders on a chart shown by Metatrader 4 Brokers UAE.

The second state is a ranging mark trending market and that is when the market begins to trend or to move into a particular direction. So it can be clearly visible on a chart that the market has trended up and down creating a range in each trend.

The Third state is pull back, so on a chart pull back can be seen when the market is trending down it pulls back. It means that the market rises a bit to trend downwards again, some of these pulls are for short period or stays for a little while.

What we ideally or would like to identify is the point at which the market continues in its intended trend direction right after there a pullback has finished and that is called trend. Learn more about currency trading UAE!

A trend is defined as two cycles of lower high points along with the lower low points, which indicates that we now have trend and if we jump on this trend, we can make as the market moves in our intended direction, so we would like to do is find the best price and then get into the market at the time when we expect the price to continue in our direction.