Technical Analysis is one more system for investors to strategize their trading methods. These analysts examine price data of foreign exchange rates to determine if those prices will continue in the future. Technical analysis involves the uses of charts as a tool to identify patterns or trends in a currency market.
Although technical analysis is akin to fundamental analysis, it focuses on the effects of market movements, rather than the causes. Investors who use this strategy will look at a currency’s past price to determine what might happen in the future.
Technical analysis is not a method for those who prefer to use intuition as part of their trading strategy.