Forex Technical Analysis is complete art in itself and You don't need to be Rocket scientist to read a Currency chart and Your technical knowledge will remain incomplete if you don't know Who hold the strong side on the chart and who is more likely to gain control in future. That market is most sentiment oriented which can turn its hands any time and it would take a session or two for a strong bull or bear trend will completely reverse, so it means you have to be cautious and can take all the time you need to access and implement what you learn in all those months or even years you spend
Forex Technical trading is all about who holds the edge, and if you want to compete with the best in the business, you need to be well versed with all the tools and need to stay ahead of the market
Chart reading or knowledge of complete Price Action is must and your decision making should be based only on levels and time spend near those levels which makes those levels even stronger when they are visit. Market always use to behave near those strong levels even for some spikes, which can be the result of consumed orders or strong pinbars which tell us the strength of the level again.
Step to step Technical Analysis
Chart above Canadian dollar/japanese yen without any explanation will put you in complete disarray what is happening but If I put some text on the same chart the you will have some idea why it is important to read every chart and understands what it is trying to tell and then plan your trading activity. Technical analysis should be easy to read and should only be based on price and its complete supply and demand structure, and time put behind such knowledge always give you an edge above others who use indicators, trendlines, fibo and Chart patterns like Head & shoulders, cup and handle etc.
Also read:--- How I manage to pick bottom in S&P--S&P Technical Analysis
Forex Technical Analysis--Step by Step Chart Reading
Above Chart tells the different story altogether,because every move is cleared in this chart and if you find such decisions been made on the chart the Forex Technical Analysis is logical otherwise they are just support and resistance areas which would surely be one or other way of failure.
If you see the above chart we have supply from where price fell a fair way away and then it found demand and compressed(cp) to supply faking it out and then this CP broke into demand and again faking it out and then rally to new highs which was another fakeout and price fall again.
While price fall of that new high it ignore the demand on its way down,creating new supply and price again found new demand and that first visit to supply (ignore demand become supply)was rejected and price then compressed to newly formed demand faking it out and went quickly for the second visit to supply and when it again went to the demand level which was consumed it just give false pinbar which tells that there was spike due to unfilled order and that unfilled orders now got consumed and price is ready to fall to the next demand level or decision making.
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