Education

• Print
• E-Mail

fundamentals tend to be quite subjective.

Instead of trading to digest all of

this fundamental information and convert it into an opinion on

prices, those who use technical analysis believe that everything

that is to be known about a market is incorporated into one thing,

price, and look only at data generated by the action of the market

itself. The technical trader’s main resource is a price chart, which

shows visually what has happened to prices historically and, based

on past market action, what is likely to happen when the same

conditions arise in the present.

Even the staunchest advocate of market

fundamentals is likely to refer to a price chart before making a

trade, if for no other reason than to get some perspective on how

current prices fit into a market’s price history. By the same token,

even the most dedicated follower of technical analysis is likely to

keep in mind the importance of key fundamentals such as natural

disasters, political upheavals, major economic reports, etc.

This trading tutorial focuses on the

basics of technical analysis, which involves several underlying

assumptions:

• EUR / USD
• USD / JPY
• GBP / USD
• USD / CHF
• AUD / USD
• USD / CAD
• EUR / JPY
• AUD / JPY
• GBP / JPY
• EUR / GBP
• GBP / CHF
• EUR / CHF