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Can Forex Technical Analysis Work For Forex Traders? The principle behind technical analysis is that markets repeat themselves. Students of technical analysis follow the theory that particular market formations and trends can be identified within the market. These repeating formations and patterns are identified by the use technical indicators and chart formations. This is the very thinking behind technical analysis. That previous market patterns and events from past markets will continue to act the same in the future.Technical analysis does therefore have no room for random events. This approach is very different from that taken by fundamental analysts. Fundamental analysts instead view the market as efficient and driven by economic news flow.As every piece of market news is known to the market upon its release, the market is viewed as only ever reflecting true value.The question as to whether technical analysis works has long been debated. However from studying past chart formations, repetition of market events can be clearly seen. In fact it is obvious that they do this regularly. Therefore the question instead should be if technical analysis works frequently...more
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