Using Technical Analysis
In This Chapter
• Interpreting charts
• Noticing trends
• Finding support
• Recognizing patterns
Technical analysis looks at the historical price movements of a currency. Technical analysts believe all that needs to be known about a currency can be seen by tracking its historical price, and from that historical data you can spot trends and predict future price movements.
That’s very different from fundamental analysts, who look at economic data and other key changes that impact a currency’s value to try to predict future price movements. We explore the basics of fundamental analysis in Chapter 8.
In this chapter, we introduce you to the basic types of charts and price patterns, as well as how to recognize trends. ...