Technical analysis methods in Forex trading

The main difference between fundamental analysis of forex technical analysis is that fundamental analysis is based on the situation: the prices of currencies in the forex market is a reflection of supply and demand, which in turn depend on fundamental economic factors.
The followers of the technical analysis ( argue that the cause of changes in foreign exchange Kurov do not look for and analyze the prices themselves enough. It is assumed that it is impossible to find the reason for price changes, before the market will have time to include it in the price. Technical analysis in most cases engaged in shorter time intervals, from a minute to a week. These intervals timeframes fundamental analysis, with the exception of one of its variations (trading on the news) is almost useless, because they themselves are the fundamental data is usually published once a week, month, quarter.
However, if the purpose of the analysis is the forecasting of medium- and long-term forecasts in the Forex market, it is already becoming necessary to conduct studies on the internal root causes of changes in exchange rates. Only this type of analysis will provide an opportunity to assess the prospects of the dynamics of supply and demand on the currency. In addition, this approach will give the investor the opportunity to not consider short-term fluctuations – market noise.
The main drawback of the fundamental analysis forex – its complexity. Just when the necessary skills to trace the interconnections 10-20, caused as a result of a single change fundamentals, but when the fundamentals themselves 50 is only one country, each of which has its causal relationships of many of these links are contrary each other or are reflexive, then you need to have a small research center. For this reason, forex fundamental analysis when making decisions are variously estimated 10-20% of the traders, and the majority of them possesses a surface.
In addition, as mentioned above, the fundamental analysis is almost useless for short-term trading, which means that its use imposes a limit on the amount of your money. You just can not have enough money for current loss on the open positions in multiple pieces (or remote installation of stop orders) that are possible when trading on the medium-term trends.
Factors influencing the forex market and forming the supply and demand for the currency, rather can be divided into several groups.

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