Technical analysis

The market is made up of people, and these people respond to the behaviour of the market itself. Market movement depends on human psychology; if you can predict what people will do, you can make money.The forex market is not just driven by world events and major economic trends. 

Technical analysis uses detailed market data to predict these trends. Different technical indicators are calculated and plotted over time to give a view of market behaviour. These charts contain signals that indicate if the price is likely to go up or down, which you can use to decide when to buy or sell.

Here's a simple example:

• The market drops a small amount
• People who are affected rush to sell
• The market drops further because people are selling
• More people rush to sell and the slide continues
• Other investors start buying as the price becomes attractive
• The market goes up again

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