New tools of technical analysis

Eyb Kofnas is president of an educational Web site for traders forex market - Learn4x.com.

Today's technical analysis is largely based on tools that were developed by the previous generation of science and mathematics. Many of them are based only on the algebra and geometry. Moving average, Exponential Moving averages, momentum indicators etc. These are standard analytical tools. Nevertheless, the availability of new tools, which use more sophisticated analytical techniques. One example is the analysis of tools for trading in the FOREX market André Duc. They are based on quantum physics and are designed to analyze the movements of the Forex market 10-second time scale up to one minute, 10-minute, hour, day, week month or more. One of the advantages of new techniques in general and of the Duke in particular is that they provide a new way to confirm or refute the traditional indicators. Let's take a look, as the analysis of the Duke works. This would require a timetable, for example, the British pound:

Figure 1

Now the traditional schedule, we transform to the following:

Figure 2

Duke contends that this transformation provides a new understanding of movements in the FOREX market. The reconfigured schedule, of course, differs from the original version. Take the 10-minute movement of GBP and smoothed price action. The so-called "quantum" line based on the quantum analysis, a common idea is that they show the direction of stability. A typical analysis of the schedule would be that the GBP has gone beyond the limits of the lines and came back, indicating that the future price action will remain top-down. A key feature of the analysis of the Duke that he could also be applied to very small time scales, like the following one minute of the schedule for the Euro:

Figure 3

(Sell signal occurs when the blue line crosses below the red)

This is certainly an interesting new approach to technical analysis, which allows slightly different look at the forex market movements.

Forex Magazine
based on www.futuresmag.com