Basis for Reading Probability of Market Movement
Reading the probability of the market direction or the biggest opportunity for the direction of the candle is to use technical analysis. A trader must understand how to use technical analysis to make big profits. Technical analysis is an analysis in forex trading to measure price movements through price charts. Technical analysis can use various models and bases, for example, for price movements, methods such as relative strength index, average price movement, regression, inter-market and intra-market correlations, cycles or classical methods are used, namely analyzing chart patterns. Technical analysis consists of parts that support each other. It needs to be used thoroughly so that the probability of accuracy of the analysis is quite large. This technical analysis consists of trend, SNR, and range. Check out the explanation below:
Trends
Trend analysis is a very important area of technical analysis and is the key to determining the overall direction of a security. Trends are based on the principle of higher and lower highs and lows and lower highs and lows (in a downtrend). Generally, a trend is a series of price track records in the form of a graph with a tendency to point up (uptrend) or down (downtrend).
SNR (Support and Resistance)
SNR is a concept that is often used in forex trading. Every time the price moves up and then goes back down, the highest point reached before the price moves down is called the resistance level. While the lowest point reached before the price moves up again is called the support level. With this, either support or resistance will continue to form all the time when the price moves up or down.
Range
Range trading can be identified as a trading style that aims to profit from a market situation or market where prices move sideways. Range trading refers to the difference between the high and low prices in a given trading period.
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