Technical analysis is the process of interpreting prices, volumes, and market trends in forex trading. The purpose of technical analysis is to identify trading opportunities by looking for patterns in historical price data. By studying the current market, traders can make predictions on what will happen next.

Technical analysis is one type of analysis where MetaTrader is the main platform used and the chart will be the main object and foremost need, since they will be able to know the price movement through the chart.

Technical analysis in forex involves analyzing past price movements and market data to predict future price behaviour. It relies on charts, patterns, and indicators such as moving averages, support and resistance levels, and oscillators like the Relative Strength Index (RSI). Traders believe historical price trends tend to repeat due to market psychology and behaviour.

By studying these trends and patterns, technical analysts aim to identify entry and exit points for trades. Unlike fundamental analysis, which focuses on economic data and news, technical analysis is purely price-driven. Tools like candlestick charts and Fibonacci retracements help traders assess market sentiment and potential reversals. Overall, technical analysis provides a structured approach to make informed trading decisions based on historical price action.