Forex Term

Technical Analysis

Forecasting price from charts, patterns, and indicators.

Technical analysis studies price charts, patterns, and indicators to forecast likely future moves, on the belief that price already reflects all known information. It contrasts with fundamental analysis, which looks at economic data. Many traders combine both to time their entries and exits.

Example

A technical trader might buy when price breaks above resistance on rising momentum.

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Risk

Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.