Technical analysis tools.

Recently, Forex trading using fundamental analysis has significantly lost its effectiveness, so technical analysis tools are gaining more and more popularity. Technical analysis is the key method for studying the market situation, and the data obtained is used to make forecasts.

Technical analysis tools are everything that helps to carry it out; this group includes indicators and oscillators, graphical figures, as well as regular visual analysis.

It is not at all necessary to use only one of the listed options; an integrated approach has always given the best result.

Let's consider the tools listed above:

Forex indicators are a universal tool that not only automatically plots various lines, waves, and levels on a currency pair chart, but also determines important parameters such as market conditions, trend direction and strength, and warns of impending reversals.

Using indicators is especially beneficial for novice traders, as they effectively provide a semi-automated advisor that can serve as a source of entry signals.

Chart patterns – it's long been observed that all Forex trading is based on certain patterns, including the chart patterns formed by trend lines. You can identify the emergence of a new pattern either manually or using a technical indicator.

The emerging pattern can indicate an imminent trend reversal or confirm its continuation.

Visual chart analysis is a fairly simple tool, yet quite effective. It allows you to visually identify patterns in price movements, such as the dynamics of correction or the key price reversal level.

For some reason, most traders are skeptical about using this method in practice, but sometimes visual analysis can yield maximum profits. Incidentally, the appearance of chart patterns can be considered a form of visual trend analysis.