Technical Analysis

Probably the most successful and most utilized means of making decisions and analyzing forex and commodities markets is Technical Analysis.

The difference between forex technical and forex fundamental analyses is that forex technical analysis ignores fundamental factors and is applied only to the price action of the market. In that fundamental data can often only provide a long-term forecast of exchange rate movements, forex technical analysis has become the primary tool to successfully analyze and trade shorter-term price movements, as well as to set profit targets and stop loss.

Forex technical analysis primarily consists of a variety of forex technical studies, each of which can be interpreted to predict market direction or to generate buy and sell signals.