FOREX Analysis

In Forex trading, probably the most successful and most used means of making decisions and analyzing Forex markets is technical analysis. The difference between technical analysis and fundamental analy- sis is that technical analysis is applied only to the price action of the market. While fundamental data often can provide only a long-term forecast of exchange-rate movements, technical analy- sis has become the primary tool to analyze and trade short-term price movements successfully, as well as to set profit targets and stop-loss safeguards, because of its ability to generate price-specific information and forecasts. Technical analysts are by nature chart mongers. The more charts there are, the better is the forecast.
 
From years now, technical analysis in the futures markets has focused on the six price fields available during any given period of time: open, high, low, close, volume, and open interest. Since the Forex market has no central exchange, it is very difficult to esti- mate the latter two fields, volume and open interest.