In making a technical analysis of currency. There are 3 basic things that must be appropriately recognized and used.
Trend
Momentum
Timing
Trend
The trend is the propensity of moving towards a particular direction. When uptrend, price moves positive and vice versa.
Momentum
The momentum is the force of motion. The stronger is the strongest impulse is the movement. When the drive is over, be reversed.
Calendar
The timing is that time when you enter the market. You enter only when the risk to benefit ratio is good. A part from that better stay out.
Wednesday, February 24, 2010
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