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no clear Support /Resistance areas are found either. This pattern can last a long time. Be on the lookout for any trending activity. 20 Gaps are areas in charts where no trading occurs and are usually continuation patterns. Runaway gaps have strong fundamentals behind move, are not quickly filled. Exhaustion gaps are usually the largest gap, usually filled, and have blowoff characteristics. Breakaway gaps are at end of price pattern or when breaking major support ( or resistance), and are usually filled. 21 Candle sticks 22 Point and Figure charts In a point and figure chart, X39。1 Forecasting exchange rate: part 1 WONG Ka Fu 10th January 2023 2 If you are looking for a white or black, or black white cat, I am your perfect choice. 3 Content ?A taste of technical analysis ?A taste of timeseries forecasting ?Fundamental analysis: Factors that affect the movement of exchange rates 4 A taste of technical analysis 5 Technical analysis ?Technical analysis is a method to forecast price movements of individual modities and/or entire markets by looking at purely marketgenerated statisticsabstract summaries of price activity. 6 Three tes of technical analysts ?All market fundamentals are depicted in the actual market data. ?History repeats itself. ?Prices move in trends. 7 1. All market fundamentals are depicted in the actual market data. ?Thus actual market fundamentals and various unquantifiable meta factors, such as the differing opinions, hopes, fears, and moods of market participants, need not be studied. 8 2. History repeats itself. ?History repeats itself, such that markets move in