Is technical analysis important in forex trading?

Is it important to learn technical analysis (TA) such as chart patterns and candlestick formations in Forex trading? Since the Forex markets is huge where no single player is able to manipulate the price action, therefore, technical analysis seems to apply better in Forex trading rather than stocks. Thus, it is important to know how to read charts.

There are many technical indicators and sometimes we ask ourselves do we really need to know every indicator to become 'Forex master of Technical Analysis'? My personal experience is that a trader does not need to know everything (it is not possible to remember every indicator anyway). Rather, a Forex trader should at least understand the basics such as candlestick formation, trend lines and Fibonacci support and resistance levels. I strongly believe the words in bold are important as they prove to be consistently reliable through the course of Forex trading. For other indicators, which indicator to use depends on the market condition, an oscillator such as RSI works well during a ranging market while a trending market should use a moving average or Parabolic.

If you are new to Forex trading, you might want to check out these three recommended titles that provide comprehensive coverage on technical analysis and you can also learn what economic indicators are important for a country economy:

1. Japanese Candlestick Charting Techniques, Second Edition by Steven Nison
2. Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy
3. The Secrets of Economic Indicators: Hidden Clues to Future Economic Trends and Investment Opportunities (2nd Edition) by Bernard Baumohl