Moving back to predicting movements in the market, we acknowledge that a trader must have a thorough comprehension of the factors that can affect the movement of a currency's exchange rate if they want to be successful. Being capable of identifying trends is one of the core skills a forex trader should possess, as it can prove to be useful in making any forex market prediction. Experienced forex traders use market indicators to identify market trends and make trading decisions, among other functions.

Recognizing chart price patterns is an important aspect of technical analysis that forex traders should master. These patterns act like a highlighter on the chart showing a potential trade. With so many ways to trade currencies, picking common methods can save time, money and effort.