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Technical analysis makes use of charts and other tools to identify patterns that can suggest future activity. The aim is not to measure a securitys intrinsic value like in fundamental analysis but to predict future price activity and identify high probability set-ups.
A fundamental analyst asearch for value in an investment whereas technical analyst will invest based on pattern, volume and statistical indicator analysis. Like any form of forecasting, technical analysis does not aim to result in definitive predictions about the future.
Instead, technical analysis can help the investor anticipate what the most probable direction for price over time is.
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When the trader closes the trade, the broker finalizes the position on the interbank market and any loss or gain is determined by how much the currency moved in price. In binary options trading, traders can select to trade options across a wide variety of assets, including foreign exchange, stocks, commodities and indices. Compared to forex trading, the traders goal here is to accurately predict the direction of the price.
If they are correct in their prediction they can gain large profits and if they krisworld development limited doing business as binaryoptionsxposedcom option-worldcom bank-optionsc incorrect they lose most of the money theyve placed on the bid.