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Forex Charting Lesson: Chapter 1 - Introduction

We made our Technical Analysis lessons as simple as possible for
easy understanding. There will be as much graphs and step by
step guide as possible. We believe that the basic is the most
important step to understanding TA - with these basics, you can
move on to read some of the more advanced books in the market.
But what we can say is that - you do not need to. With the
basics + your own experience = You can develop your own set of
proven tools. Lets start with Chapter One.



Technical Analysis and Art or Science? It started more as an art
and has became more scientific due to rapid development in
computer technologies. It will remain an art with greater
scientific underpinning.



Technical Analysis (TA) Vs Fundamental Analysis (FA) FA = Gives
the causes of price movement TA = Studies the effects of price
movement



TA and FA are mutually supportive in the long-term but when it
comes to short-term theres usually conflicts. FA tends to be
economic in nature and will not be able to forecast non-economic
events such as political and other crises which often move
financial markets. Forex Charting Lesson: Chapter 1 -
Introduction



Guidelines in using Technical Analysis - TA is based on
evidence, not logical. - TA is based on probabilities and same
as HYIP investment - theres no gurantee. - Do not have the ONE
tool mentality. TA is able using a combination of the tools
available. - When a tool/technique is proven to be successful,
try to use it more often and improve it.



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