Forex charts show a trend when we look back at them - but predicting which way prices will go in the future by studying Forex charts is a different matter!

Charting is an art more than a science. Use the right tools in the right way, and you’ll win - and if you don’t you’ll lose – it really is that simple.

This article is all about using technical analysis the RIGHT way - and using Forex charts to make big consistent profits.

Let’s start with the basics of why technical analysis is so effective in Forex trading.

The market prices all known fundamentals

Using technical analysis means you can see not only the affect of the fundamentals - but also human psychology, to give you the WHOLE picture. The simple equation for this is:

Fundamentals + Human Perception = Price.

The great advantage of technical analysis is that investors determine the price of anything (in Forex trading or any other market) - as human nature is constant, human psychology shows up in repetitive price patterns.