Technical Analysts believe that all the financial markets move by trends. They are of the opinion that Forex trading market is not that unpredictable as it seems to some. If the past movements and price trends of the market are thoroughly studied, then according to the technical analysts, current as well as future movements of the market prices can be easily estimated.And for sighting these past trends and movements and representing them clearly and orderly, Technical indicators are used. These indicators are basically figures and data of past market records based on diverse statistical calculations. These indicators facilitate the traders using technical analysis, to predict if there are any continuations or turnarounds in the market trends. There are many different types of technical indicators which are used in technical analysis, a few of which are given below: Trend indicators The continuances or reversals of a price movement in any particular direction over a period of time can be defined as a Trend or a Pattern. It is believed by the technical analysts that trends seem to move in three directions, either up, or down or sideways. Trend indicators are used to even out inconsistent price records and stats to produce a combination of market trends. They also reflect the direction and the momentum of the current trend. The most common Trend indicator is Moving Averages. Flux indicators Flux or volatility indicators are used to reflect the degree, or magnitude, of everyday rate variations with or without describing its direction. These indicators are important as it is seen that variations in volatility can be liable to show traders a way to price changes. The most common Flux indicator is Bollinger Bands. Support / resistance indicators Support and resistance indicators are used to reflect orderly, the effect of the basic process of demand and supply on the price levels due to which the markets ascend or descend time and again. The most common Support / resistance indicator is Trend Lines Oscillators/ Momentum indicators Oscillators/ Momentum indicators are used to reflect systematically, the momentum at which rates or prices move about in a specified period of time. They help the analysts in establishing the advantage or disadvantage of a trend or pattern as it develops over a time period. It is believed that strength of a trend or a pattern is maximum at the initiation of a trend and minimum at crossroads or transition phase of a trend. The most common Oscillators/ Momentum indicators are RSI, Stochastic and MACD. Sequence indicators Sequence indicators are those which are used to signify recurring trends in any market movements, related to repeated patterns or events such as specific time of the year, wars, elections etc. Due to such events and happenings, many financial markets have a trend of moving in cyclic patterns. The most common Sequence indicator is Elliott Wave. Strength indicators These indicators are used to reflect market strength and the power of market opinions relating to an outlay by studying the market situations obtained by different market traders and investors. Being the fundamental elements of this indicator, Volume or open interest generate signs that are immediate or driving the market. The most common Strength indicator is Volume. These days, nearly all charting packages contain some of the above mentioned technical indicators. Traders while choosing a charting package can easily add their preferred technical indicators to their charts.

There are two types of analysis which are generally used by the Forex traders to keep a track of the Exchange market. These are: • Fundamental Analysis• Technical AnalysisFundamental analysis includes a detailed study of the basic and primary elements which have and can potentially manipulate the financial system of a certain thing. This type of technique is often used to study and forecast the various trends like price action and market trends. These predictions are done mainly through evaluating fiscal indicators, public factors within a company and administration policies.When it comes to financial markets, fundamentals are the key. Fundamentalists can easily tell you how did any particular market trends occur and what will they be at the current hour or minute and further significantly, at what time and at which price will they be in the near future. Market traders are divided into the two; they are either Fundamentalists, or Technicians. But the fact is that it is kind of difficult to survive in the Forex market with one of the two techniques. What is needed is the right blend of the two to form a perfect picture of the current market and price trends. A Forex trader should always be aware of the fact that any financial market is influenced by many factors apart from its past trends and movements. Many issues such as political and financial pressures, national issues and social order define to a great extent, the way most of the financial markets move. While Fundamental analysis is a very successful technique to predict monetary conditions of the market, it can somewhat lack in determining the exact market rates and prices. For example, just by studying a financial forecast of the political and fiscal reports, it cannot be guaranteed that you will be benefiting from them. What is important is to know the right and accurate way to utilize the information by setting up accurate entry and exit points for a particular trading position. Fundamental analysis is mostly studied using a multitude of empirical data to devise a strategy with an effort to predict the current market movement as well as future prices. Technical analysts are of the opinion that factors like market fundamentals, hopes and fears of the people need not be studied in detail to understand the market well. According to them, market moves in a rather predictable manner and these moves can be predicted by studying various past patterns and trends. Technicians believe that markets move in trends and that history repast itself. And therefore, they are not as unpredictable as they seem.Technical analysts use systematic methods to predict market movements such as price charts, volume charts, and other studies to estimate future market values.After doing so mush of analysis of the past trends and flows, it becomes very difficult for the technical analysts to not rely on their findings a 100%. After using technical analysis to foresee the market trends, it is necessary for the traders to set up strict entry and exit levels, and stay with their pre planned strategies rather than deviating from it at the last moment.

Forex is a market where currency is a bought and sold everyday. Trading of more than 1.5 trillion US Dollars everyday makes Foreign Exchange one of the largest financial markets in the world. The main aim for everyone trading Forex is to make profit from their position. Now, the most important question here is that, what is a position? A Position can be defined as the netted total holdings of a given currency. A position can also be termed as a trading view expressed through the pattern of buying or selling. It can denote the size of a currency either being possessed or payable by a trader. A position can be categorized into 3 types: Flat or Square trade or position has no exposure in the market. Short trade or position is where more currency is sold than being bought. Long trade or position is the one where more currency is bought than being sold. Open trade or position is the one where an investor has either bought or sold a currency but is yet to sell or buy back the corresponding amount to successfully close the position. Currencies are always valued in pairs in a Foreign Exchange market. That is the reason why all trades bring about an instantaneous or real time buying and selling of currencies, where one currency is bought as the other is being sold. This is the main reason why Forex is known as Foreign Exchange or a Crossing Currencies market. The main aim of all the traders while trading Forex is to exchange one currency with another, with the anticipation and probability that the market prices will change. And if that happens, then the currency you bought has the chances to increase its price as compared to the currency that you sold. If the currency that you buy increases in its value as compared to the value on which you bought it, then you must instantly sell it back to gain the profits and secure them. Other terms such as “Going Long” and “Going Short” in a market are also frequently used. “Going Long” is used when you are buying a currency and are therefore, said to be “long” in that currency. Similarly, when you are selling a currency, you are said to be “Going Short” in that currency. Because the Forex market goes by the exchange system, traders can be seen buying and selling currencies simultaneously, hence “Going Long” in one currency and “Going Short” in the other. An Open position is one which is current and ongoing. Here, the trade is still going on. In order to Close a position, a trader has to conduct an equal exchange deal with the same currency pair. If a currency is bought by you, which has suddenly appreciated in its value, then have the chances of making profits making the deal and by closing your position. This means that you will have to sell that particular currency, just to buy the counter in the pair.