What is Technical Analysis?
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What is Technical Analysis?
Technical analysis is an alternative trading technique to fundamental analysis, and refers to the process of using charts and graphs to spot trends in currency prices.
The most often used technique is determining the market cycle - which is how long the currency takes to move from a low to a high and back again. However, technical analysis can be a haven for number crunchers - as it can get as complex as using Fibonacci numbers to anticipate changes in price trends.
A great book on technical analysis for "finance geeks" is The Forex Chartist Champion: A Visual Approach to Technical Analysis by Michael Archer. It is available from Amazon.com.
