Before we talk about trading and patterns of forex markets, you should know what forex exchange is. Forex or foreign exchange market is a market that is the most liquid market in the world. They deal with trillions of dollars every single day. It is also a market that does not exist in the physical world, which means it is an intangible market. Countless people rely on the forex market for their jobs.
The forex market is actually a place that represents a market where a lot of different currencies would move against one another. It is also a place where you exchange one currency for another. A lot of people make a living by being a forex market trader. The dashboard is actually made up a lot of currencies which are paired with one another, and the traders actually speculate their movements. It actually means that one currency will be worth something one day, and it will be worth something else another day. The values can go up and down.
For example, consider that if a trader bets on the excellent shape of the economy of the United Kingdom, he would buy the currency, which would be the GBP. He would have to buy it against something, and therefore, he will have to choose the currency pair.
The traders that would buy and sell based on the chart interpretations or actually known as technical traders. Technical analysis is actually the bread-and-butter of their trading.
Technical traders make use of oscillators and indicators. They also track the price movement, and they apply a lot of filters to plot support and also at the resistance levels or the overbought and oversold levels of currency charts. Based on the results, traders purchase and sell the currency pairs, and they also speculate on many instances.
Technical analysis actually changed over time, considering many factors which influence the way that the traders approach the market. You should also keep in mind that computers completely changed the way that traders look at the market and the advancements of new technologies that were available, completely alter the face of the forex industry.