Chapter 11
Cutting the Fog with Technical Analysis
In This Chapter
Understanding what technical analysis is and isn’t
Identifying support and resistance
Using momentum the right way
Spotting important chart patterns
Saying that there is a lot of information to absorb in the forex market is an understatement of major proportions. To help make sense of all the information, a lot of which can be just noise — the fog of the market — professional traders focus on the one piece of information that is not subject to dispute or opinion: prices.
The field of technical analysis is huge, and there’s no way I can cover it in its entirety in this single chapter. Literally hundreds of books have been written on technical analysis in general, as well as on specific approaches (such as the Elliott wave principle or candlestick analysis). In Chapter 20, I suggest several of my favorite books on technical analysis as additional reading. I strongly urge you to supplement the material in this chapter with further in-depth study.
In this chapter, I give you as rich a slice of the technical cake as possible, ...
