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Technical analysis is one of the most popular ways that traders speculate on the forex trading markets. To simplify their decision-making process, many day traders and scalpers use strategies based on technical analysis.The technical analysis consists of examining forex trading price graphs and various indicators derived from past forex trading prices to predict the evolution of the markets. It therefore uses the past to receive buy and sell signals. The technical indicators used in the technical analysis are mathematical formulas or calculations based on the study of prices and sometimes quantities, and the aim of which is to help the trader make better decisions. A technical indicator makes it possible to identify entry and exit points, to receive buy and sell signals on the forex trading markets or to graphically show the development of the speed and quality of a movement over a certain period4 | P a g e of time. In short, in the technical analysis, forex trading market indicators make it possible to predict future price developments on the forex trading markets. Once you've mastered the advantages and limitations of this method,Despite all the exotic tools it contains, technical analysis only examines supply and demand in a market to determine which direction or trend will continue in the future. It tries to understand the emotions in the market by examining the market itself as opposed to its components. Knowing the pros and cons of technical analysis will give you new tools or skills to help you become a better trader or investor.As mentioned in the previous chapters, technical analysis and fundamental analysis are the two main lines of thought in the financial markets. Technical analysis examines the price movement of a security and uses this data to predict its future price movements. Fundamental analysis, on the other hand, looks at economic data that is referred to as fundamental data.5 | P a g e Technical analysis can be used for any security with historical trading data. This includes forex, forex tradings, futures and commodities, fixed income securities etc. In this part of the tutorial you should highlight the analysis of forex in our examples. However, keep in mind that these concepts can be applied to any type of instrument. In fact, technical analysis is more commonly associated with commodities and forex.
