What is Technical Analysis?
Technical analysis is a method used to forecast the trend of exchange rates in foreign exchange market by analyzing the past data, especially the data related to price and volume. Technical analysis focuses mainly on recognizing the pattern and trend of rates to explore their trend. However, there are many tools used by the technical analysts but one of the most important tools used is the study of price charts.
While forecasting exchange rates with the help of technical analysis, the expert technicians look for repeated patterns including head and shoulder pattern, double top reversal patterns, candlesticks or they study indicators like moving averages. [Read more…]