Forex Technical Analysis

Forex technical analysis is the study of market action, primarily for the purpose of predicting price trends. Some of the sources for analysis include forex prices, trading volume, and open interest (forex futures).

Much of technical analysis is based on the belief that all the available information that can possibly affect the market price of currency pair is already reflected in the price.

Therefore, the study of price action is all that is required.

There are many schools of forex technical analysis, but the biggest one is based on chart analysis. Charts themselves are only presentations of past prices of the currency pair.

Learning Forex Technical Analysis

However, a glimpse to the possibilities with technical analysis is not enough to form a viable trading strategy. That’s why many enroll into courses that offer a comprehensive look into technical analysis and may even be aimed at developing your own system by the end of the course.

There are also many good books on the subject of technical analysis. These books include:

• Technical Analysis on Foreign Exchange Markets
  by Ulrike Ludden
• Technical Analysis Applications in the Global Currency Markets
  by Cornelius Luca
• Intermarket Technical Analysis : Trading Strategies for the Global Stock, Bond, Commodity, and Currency Markets
  by John J. Murphy
• Trading Currency Cross Rates
  by Gary Klopfenstein, Jon Stein