If it is not "technical analysis", what is it? The other side of this is known as the "fundamental analysis".
Traders need to know the difference and why most foreign exchange dealers these days use technical analysis.
Fundamental analysis is based on an instinctive feel for the forex market to the rich experience over many years of trading.
Without generalize too much, traders of the fundamental analysis have been in business for a long time, long enough consistently seen Ebbs in different currencies and to know what factors determine their value.
This is an over simplification, but for the most part, to be able to beat the market as a fundamental trader, you need to be a pretty good economist. Most successfull fundamental forex traders have a specialty currency pair or two and understand the complex inter workings of the relationship.
Prior to the average player be able to Dabble in the foreign exchange market, forex trading was only for major banks and other large institutional investors.
Decades of experience in a variety of information, and a clear idea of how currencies behave could in the current climate make you a large sum of money. Moreover, information technology was not as important in fundamental analysis as it deals more with the observation, hunches and lots of records. Now that information technology makes technical analysis more efficient, it is a favorite tool of most individual investors.
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