A lot of successful traders consider technical analysis the most important tool for examining the market.
Technical analysis is focused on the study of past, and Forex prices.
This is often realized through charts and its main objective is predicting future price movements and trends, as well as identifying opportunities for profitable Forex trading.
Prices move in trends which means that currency prices tend to move in the same direction for periods of time. Besides, market history repeats itself, this means that currency prices are likely to respond in direction and manner similar to that of in the past.
Among various tools applied in technical analysis there are included also moving averages, trend lines, support levels, etc. Hence a client has a chance to choose from a wide range of advanced analyses and theories.
Such popular analyses are Fibonacci Studies. They look at the relationship of numbers and apply the same sequence analysis to the Forex market to project the direction the market will move.
And traders, consequently, make use of all the tools to ensure an accurate and profitable trade.