Technical analysis (TA) is a basic analytical method in foreign exchange trading. It uses charts and indicators as main forecasting tools. According to the technical theory, the analysis of the price action that have already taken place provides predictive information for the future.

Technical analysts neglect fundamental ones because they believe that current prices reflect all the information available in the market, and new information is consumed too quickly to offer a trading opportunity.

TA is highly subjective. In practice, the same chart can be read as bullish by one trader and as bearish by another. This is mostly due to the different methods of technical analysis. There are practically countless directions for performing TA – price patterns, indicators, supports and resistances, price channels, Fibonacci retracements, etc.

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