technical analysis


The art of forecasting price movements through the study of chart patterns, indicator signals, sentiment readings, volume and open interest.



Unlike fundamental analysis, technical analysis does not focus on economic data, but rather on interpretation of price data. One of the key tenets of technical analysis is that price patterns repeat themselves, allowing technical traders to make highly probabilistic bets on the direction of the instrument.



FX lends itself particularly well to technical analysis because it trades 24 hour per day and therefore provides a continuous stream of data that can be used for statistical analysis.