In forex technical analysis graphs and charts play an important role in deciding the right time to buy and sell the foreign currencies. Technical analysis forecasts the forex market movement in future by data, graphs and charts. Also, investors can easily see the past statistics of currency pairs. The prediction of future forex market movement is much easy by using technical analysis rather than complicated fundamental analysis.
Technical analysis in forex trading has mainly two sections as discussed below-
Traditional Technical Analysis- It is related to graphics and charts.
Modern Technical Analysis- Modern technical analysis consist of quantitative methods.
It is also a good idea to use technical analysis along with fundamental analysis for prediction of future market movement if you are expert in both types of analysis. But if you are a beginner and not very comfortable with fundamental analysis then you can use only technical analysis to predict the future forex market movement.