Technical analysis is the methodology used by forex traders to predict or weigh up the odds of future price movements and market trends by studying past market price action. the premise of this analysis technique is patterns within the prices would reveal possible trends, highs and lows based on predictable repetitive human behaviour. People are predictable and have habits: history repeat itself. Also, the price action in achart reveals everything there is to know about that in strument since the current price action acounts foe all the market factors and sentiment, supply and demand.
There are a few sub-branches to technical analysis:
1. Oscillating indicator (RSI,Stochastics, MACD)
2. Number theory including the mathematical Fibonacci numbers and slightly mystical Gann numbers
3. Elliot Wave Theory
Gaps
4. Trends and Averages
It isn't necessary to use all of them at once. Perhaps the most commonly used are oscillators like RSI and MACD, Fibonacci numbers and Trends using Moving Averages.
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