In the global foreign exchange market, retailers, investors, speculators, and institutions determine the relative value for the conversion of one currency to another via the buying a selling of currency pairs. There are a number of methods used by forex traders to predict the movements of currency pairs. Some traders focus on news, interest rates, and economic variables while others prefer to use charting tools and indicators to guide their trading decisions.

To be profitable in today's world technology and advancement forex traders must be proficient in reading and more importantly understanding charts, chart patterns and basic technical indicators.

What could possibly be more important to a technical forex trader than their price charts? Your perception of price will ultimately help shape your opinions of trends, determine entries, and more. With this in mind it becomes absolutely critical to understand what you are seeing on your trading monitor.

There are many methods used by forex traders to predict the movements of currency pairs. Fundamental traders may read news sources to see how interest rates, economic growth, employment, inflation, and political risk affect the supply and demand for currencies.