Technical analysis and tools used in measurement

In order to get acquainted with technical analysis and its basics, we must know its definition first, technical analysis is the study of market movement through the use of charts mainly to predict price movement, and price movement or market movement depends on the knowledge of three main things, namely price, trading volume and open contracts.
 

Technical analysis metrics Technical analysis is based on three different metrics :

1. The market movement decides everything

2. Price movement trends

3. History repeats itself
 

The following is an explanation of the three measures clearly and accurately

- The first measure:

is the movement of the market decides everything: it is considered the cornerstone of technical analysis, where anything can affect the price, where it is actually reflected on the market price, because the price movement is only a reflection of the changes that occur to supply and demand, if demand increases over supply, the price rises and if supply exceeds demand, the price drops with a simple example if there is a commodity in a limited number and the demand for it is high, the price increases, but if the commodity is abundant and the demand for it is limited, the price decreases. While the method of technical analysis sometimes seems smooth and simple in its ideas, the first measure is that the price decides everything is the greatest experience a trader can gain from the market.if what affects the market price is reflected on it in the end, all that is required is to study this price and by using charts and analysis of the price and a set of indicators that support the price movement, the trader can predict the next movement of the price and the market.
 

- The second measure :

is the direction of price movement: the concept of direction is considered something fundamental in technical analysis, and if one cannot realize that the markets are moving in a real direction, there will be no point in predicting the Future Movement for the purpose of trading on the basis of those trends.we often hear common expressions that say always striking in the direction of the market or never opposing the direction of the price, that is, the direction of the price is the direction of the market and the way in which it moves.
 

- The third measure : 

history repeats itself: most forms of technical analysis and the study of market movement must be accompanied by a study of human psychology because the key to understanding the future lies in studying the past, or we say that the future is only a repetition of the past, when a trader sees the formation of a certain pattern on the chart may have been before and changed the direction or confirmed the direction of the price, the trader decides to enter based on previous data that happened before and the price completed its direction or changed it due to previous studies of the chart and the study of price movement.