What is classical analysis?
What is classical analysis and its tools?
Here are 6 things you should know well:
-Japanese candlesticks
- Trend lines
- Support and resistance lines
- The most important technical indicators
- Technical models
- Capital management
Now focus: If you understand these six classic things, you will know well the most important market movements.
First: Japanese candlestick analysis:
We all know that there are 3 types of charts:
- Line chart - It is simply watching the price movement in the form of a line
- Bar chart - is watching the price movement in the form of perfect bars in the picture, and the left line represents the place where the column begins (open), and the right line represents its end (close).
The Japanese candlestick chart, which is the most popular in trading, also has a beginning and an end, and forms a tail or shadow from the top or bottom depending on the movement.
But all traders and analysts rely on Japanese candlesticks mainly because they are easy to read and give accurate information.
Line drawing can also be used, which is also useful in knowing the direction of the trend and analysis
But very few people use bar charts because they are difficult to understand, and I do not recommend them. Just take a look at them to learn.