Technical analysis in forex

Technical analysis may be the most common and successful means in making trading decision and analyzing Forex and commodities markets. It is different with the fundamental analysis. In technical analysis, the trade applied only to the price action of the market. Here, the price action is ignoring the fundamental factors. Different with fundamental data that is often provide long-term forecast of exchange rate movements, technical analysis will gives shorter-term price movements. It also can set when to stop loss and targeted profits. This way is more useful for traders.

The deriving support and resistance levels are one of technical analysis usable. The market will tend to trade above its support levels and trade below its resistance. If a support or resistance level is broken, the market will expect to follow through in that direction. These levels are determined by analyzing the chart and assessing where the market has encountered unbroken support or resistance in the past.

Technical analysis is consisting primarily of a variety of technical studies. Each of those is can be assumed to generate buy and sell signals or to predict market direction. This technical analysis gives you simple way in analyzing the trading process, as well as its chart of trading. On GCI's integrated charting system, for example, showing red support line that can be drawn by clicking the trend then you can draw a line of the trade movements.