Predicting the direction of a Forex market

The changes experienced by Forex markets is usually cyclical. This is an indication that at times the price behavior of Forex may become more predictable. The discovery of these factors is essential since it allows predicting the prices that can be earned on the market.

This is my technical analysis regarding this theory. This will be a technical analysis of how price movements can be predicted on the basis of analyzing the historical movement of the price chart. In his articles, Charles Dow indicated that through his basic principles of technical analysis, the stock market could be observed and analyzed, hence allowing predictability.

The principles were:
Market price accounts for everything. Therefore, in the current market movement and quotation, all tendencies, the sentiment of participants, and other factors that may lead to the influence of the prevailing market price information are already accounted for.

History is repetitive. As Dow observed, the formation of markets such as the alternation of lows and peaks is relatively stable and areas such repetitive hence predictable.

Lastly, the trends of prices are continually complimenting each other and are present. Therefore, the prices do not move randomly, and at each moment at a time, a prevailing movement is witnessed, either up, sideways, or down.

Therefore these principles indicate that technical analysis is the general way of predicting future prices.