KG's Technical Analysis

There are many way for analyze chart in Forex, both fundamental or technical way, where the result will use to open transactions, i.e. open sell, buy, or just watch it first. I get this Technical from http://www.forexindo.com/, with indonesian language and i want share in English to this blog.

There are two kind of data that need to obtained from the analysis.

First: a prediction of where prices will move (up or down).

Second : It has a prediction to which prices will move.

These prediction are not generated in-consequent, but through mathematical and statistical calculation. For example, from the data that has been formed can be calculated and analyzed, then predict next price movement.

The most frequently asked questions by general traders is "Where the price trend or the trend will move?." Trend "by KG is defined as the tendency of price movements based on units of time, because time is one of the basic analysis in KG's techniques.

One of the easiest ways to determine the direction of the trend is to look at a chart, which is to see the value "price" in the leftmost candle and value "price" in the last candle at the time. Then compare the results, if the "price" in the left is lower than the "price" in the latest trend is said to rise, and  if the "price" in the left is higher than the "price" in the latest trend is said to down.

KG's Technical see the trend by using existing data on the chart that is used, i.e. price and time data. For example in the H1 Time Frame (Hourly time frame), every candle describe the range of price movement for an hour, and price movements that occur during an hour is only represented by four values, namely:

1. High Price Value : represents the highest price.
2. Low Price Value : represents the lowest price.
3. Open Price Value : represents the open price, the initial value when H1 time frame candle start.
4. Close Price value : represent the closed price, the final value when H1 time frame candle end.

From this we will get a grouping data, so the price data in the form of candle that seen in any Time Frame Chart is represents of price data which have been grouped, and each data group is only represented by 4 (four) price value during a certain time period .

An understanding of Time Frame and the data on each candle is extremely useful for select periods of time frame that will be used to analyze the chart. Lack of understanding about this can often cause errors in analysis.

From 4 Value Price mentioned above, can be obtained many data such as:

• Median ((H + L) / 2),
• Typical Data ((H + L + C) / 3)
• Weighted data ((H + L + C + C) / 4)
• And many others.

In KG's Technical, we will analyze data use Simple Moving Average (SMA) which is take from Weighted data in every candle to see the price movement.

Simple Moving Average (SMA) calculate the mean values within general way, for example : we have many value like : 4, 7, 6, 9, 8 and 2, so the value of SMA is (4+7+6+9+8+2)/6 and the result is 6. Where the divider 6 is the amount of data.

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