The aim of technical analysis is to forecast price trends in future basing on the historical data along with the one of the volume. Technical analysts are sure that any fundamentals and even expectations have affection to exchange rates changing being the factors of the market. The end of the 19th century gave birth to the Dow Theory that used the writings of Charles Dow, who was an editor and co-founder of Dow Jones. Recent decades gave a number of new tools along with the amelioration of the old ones that was caused by the development of computer-based technologies.
There are three suppositions laying at the basis of technical analysis:
1. Everything should be considered at the market movement;
2. Price movement has a purpose;
3. History is to repeat its occasions;
Relying on these statements, technical analysis can be described as the mathematical analyzing of historical data and carrying out price forecasts. Anyone can gain the profit by posing himself in the trend direction (different patterns of price chart that will suit the future market and price) , from the point of view of technical analyst. In the uptrend situation you should consider a buy decision, whether if the downtrend occurs you should try to sell. Forex Trader should consider technical analysis as a key factor for success. Technical analysis basic overview is historical market prices analysis for the purpose of predicting price trends or having an adequate picture of prices movement in future.
