Technical AnalysisTechnical analysis is a strategy used by Forex Traders to speculate about future currency price movements. Unlike fundamental analysis, which goes into qualitative evidence such as news about a currency or commentator opinion, technical Forex analysis believes that this information will be reflected in the currency’s price and movements.This type of analysis basically examines past price movements to forecast future price movements. The premise of this school of thought is that “history repeats itself”. In my own trading, I use candlestick charts which show me candlestick patterns in accordance with a currency’s trend to tell me whether a trade will be worth entering or not. As with all trading tools, this type of analysis should not be used on its own. Always keep an eye on
major market announcements
as this is a signal of unpredictability in the market where the ebb and flow of the market might be briefly interrupted.
Leave Technical Analysis and return to Currency Exchange Rate History Return to Forex Trading Beginner homepage |
