4.2.Klassifikatsiya methods of technical analysis Forex
Depending on the used tools and techniques of assessment of market conditions, methods of technical analysis can be divided into several categories:
1. Graphical method
In the graphical method of analysis Forex, is used exclusively graphic market (graphics, prices, volumes). An important component of the graphical analysis are graphical models. Depending on how the graph (lines, bars, Japanese candlesticks), graphical methods belong to the respective group. This separation is due to the fact that at different display pricing information, the perceived signal figures also have a different shape and interpretation.
2. The method, which uses digital filters and mathematical approximation.
The emergence of these methods is related to the development of probability theory and statistics, but more widespread recently, with the development of computer technology.
3. Theory of Cycles.
This method is based mainly on the third postulate of technical analysis "History repeats itself", which means that there is a cyclical and changing nature of the market and price fluctuations. Cyclicity can be determined by a clear mathematical formalism, using the theory of economic cycles, or based on Elliott wave theory. If imagination and knowledge can then be tied to the cyclical market swings of the magnetic field of the earth, or astrological forecast.
