For beginners in the forex market, technical analysis can seem difficult to grasp, that is why we have chosen, today, to popularize somewhat.
Technical analysis is important in trading because it allows traders to determine the direction a currency. This is a fundamental difference with the games money as with the latter, it is absolutely impossible to predict, for example, the cards that you will have between the hands. Lucky day, therefore an important role in the casino while this is not the case at all on the foreign exchange market.
Of course, with technical analysis, you will not be able to predict 100% the evolution of a currency, but using it properly you can still get to a good 70% of predictions are valid.
Technical analysis is based on the saying that the trend is your friend. In other words, this means that there is no reason for that trend is reversing itself. However, for lovers of fundamental analysis, this adage is false. In fact, according to the latter, a trend takes necessarily end sooner or later and conversely, therefore, at a time, without there being necessarily of reason. Because of this, most experts in forex suggest using both analyses. It is, in effect, combining them as you refine the better your predictions.
To succeed, you will have understood, a trader must study the graphics techniques and keeping an eye on the financial news of the world. Of course, again, you will not have the guarantee that your predictions will be correct but they will have more of chance of being.
If you want to make a comparison, let fall that which is commonly done with the casino games because, as we noted earlier, this is not at all comparable. Forecast future trends in the foreign exchange market is more like the work of a meteorologist. Of course, the latter predicts not 100% what the weather will be tomorrow or the following days but in the measure in which his analysis is based on evidence and scientific the probability that he says true is far more important.