Technical Analysis

Technical Analysis is an analysis method that measures the intrinsic value of assets by analyzing statistical trends and patterns achieved from trading activity, including historical price data and volume.

Different from fundamental analysis, which focuses on analyzing economic, social, and political forces that affect assets’ supply and demand, technical analysis focuses on the market movements that affect changes in price, volume, and implied volatility. It is used to generate short-term trading signals from various charting tools and help investors predict what might happen in the future.

In Forex, technical analysis is a common strategy for traders to utilize when deciding whether to enter or exit a trade.