Forms of Technical Analysis – EarnForex
In my opinion, there are four basic forms of technical analysis that are used to publish technical analysis by experts for other Forex market participants:
Text
Static charts
Videos
Audio broadcasts
You can see the examples of text technical analysis published every Saturday in this blog. The benefit of such form is the exact price levels that do not offer any opportunity for inaccurate reading. You could enter them into your trading platform as pending orders or set them as SL/TP levels for an existing position without any modification.
The charts with technical analysis — either indicators or some other form of price level markup — are much more visual than the bare numbers. The charts show the price history and a lot more data from the applied technical indicators. The problem is that, often, such charts do not show any exact levels, and the analysis consumers have to guess the exact levels by looking at the chart. Fortunately, our newest format of weekly technical analysis lacks that disadvantage as every chart is accompanied with related exact price levels.
Analytical videos are capable of demonstrating an even deeper picture of the current market situation for a given currency pair. The analyst can add and remove various indicators, graphical objects, scroll the chart, apply different timeframes, and at the same time use the voice-over narration to provide further explanations. Potentially, videos have the same disadvantages as the chart form, but sometimes, the author can mitigate them by providing the exact price levels via the video description or in the voice-over. Another disadvantages of Forex videos are their bulkiness, the necessity to spend several minutes of full attention, and the necessity to turn on the sound.
Listening to audio analysis is not very popular in the foreign exchange market. However, there are two main advantages of this form. The first one is the fact that you can listen to it as a background process for your normal activities (e.g. driving a car). The second one is that some people find information transmitted via audio channels much easier to perceive than via visual channels.
I myself prefer to see the plain charts when reading someone else’s analysis because it offers the optimal combination of visualization and ease of perception. And how about you?
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Forms of Technical Analysis – EarnForex
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