Technical Analysis FundamentalsTechnical analysis fundamentals are based on the premise that history repeats itself – the Forex market will behave in much the same way immediately before a price move, with regularity. Technical analysis is a strategy used by many Forex Traders (myself included) with great success.Here is a list of some of the fundamentals of technical analysis: Market price movements are displayed on a chart (usually a candlestick chart). Market prices will move in trends – either bullish or bearish. Always trade according to the trend. There is no need to examine market news about a currency, as this is “too much information” – the news will inevitably be reflected in the price of a currency. The price movement history is statistics – and the candlestick chart forms recognizable candlestick patterns to give you a signal whether to enter the market or not. It is by using a combination of technical analysis tools that you make the decision to enter the market – I personally make sure that: * The candlestick pattern agrees on the 1-hour, 30 min and 15 min chart I also make sure that there are no
upcoming market announcements
of that currency in the next few hours as this increases the unpredictability of the market.
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