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Author Topic: As you continue to trade forex, evaluate the past  (Read 32 times)

MorrisPouff

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on: February 14, 2021, 08:15:47 AM
As you continue to trade forex, evaluate the past

One of the key principles of the technical approach is to value the past - the Dow theory works on the premise that "history repeats itself". Looking at the past price action of an asset can provide clues as to how the price will behave in the future based on past experience. Human behavior can be predictable to some extent under a certain set of circumstances and thus the technical approach can work. Market forces dictate prices, and price is determined by people just like you and me, who succumb to the same human emotions of hope, greed, and fear as everyone else. Seeing where previous highs and lows have occurred in the past and how the market has behaved before when at those levels can provide clues as to what might happen next, thereby allowing traders to formulate a set of strategies , using what-if scenarios.



 

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