Forex Technical Analysis

There are two basic approaches to properly analyze the Forex, technical analysis and fundamental analysis. While the technical analyst studies the price movements themselves fundamental analysis focuses on the essential causes of price movements.

A technical analysis is what one uses to try to predict future price movements based on the analysis of certain periods and on reading / understanding of graphics. In technical analysis, there are several interpretations of the models, all are generally based on historical charts of a currency. As long as one realizes the various differences of fundamental and technical analysis, both can be used to parallel one or the other, although both may present different conclusions.