Is technical analysis effective? Or fundamental analysis, or random walk ... these topics that have been so controversial over the decades have not ended. In fact, Technical analysis is still trusted and gives birth to many indicators, tools and methods. Charles H. Dow invented the Dow Jones index and a series of principles for market analysis that later became known as the Dow Theory, the foundation of Technical Analysis.

One of the fundamental tenets of Western Technical Analysis is based on the assumption that: "Price reflects everything" and "the future will continue to repeat what happened in the past". mainly based on the volume and prices of the past, to speculate on the future. There are of course many factors that affect the market such as news, supply and demand, natural disasters, earthquakes, and so on. To continue to temporarily accept the above assumptions.

Western technical analysis tools are Trendline, Elliot, Hamornic, Fibonacci, Cup, and hand price patterns, Double Top, Head and shoulders ... and dozens of indicators.

In the East or in particular, the Japanese invented the Ichimoku and Price Action tools.

Ichimoku consists of ingredients
  • Tenkan, Kijun: Describes current price action
  • Chikou: The closing price is pushed back after 26 periods
  • SenkouA, SenkouB: Describes current prices pushing forward 26 periods
Ichimoku - "A glimpse" but reflects the market in a very quick way, without the need to draw trendlines and complicated price patterns like Western technical analysis.