Technical analysis tools.

In recent years, Forex trading using fundamental analysis has significantly lost its effectiveness, leading to the growing popularity of technical analysis tools. Technical analysis is the key method for studying market conditions, and the data obtained is used to make forecasts.

Technical analysis tools are anything that aids in technical analysis. This group includes indicators and oscillators, chart patterns, and standard visual analysis.

It's not necessary to use just one of these tools; a comprehensive approach has always yielded the best results.

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.