Technical analysis is the analysis of movement based on a mathematical calculation (formulas, graphs, charts, etc.). By combining the movement of an instrument with specific mathematical formulas. To present a picture or predictions of the future. Now that you have to be careful and watch was the words, images / predictions, so accuracy is not 100%. The amount of accuracy is at the level of art and distinct from each trader. The more you diligently honed formula, evaluating, combining, etc. will become more precise.

The goal of traders using technical analysis, among other things:

1. Volume of transactions
2. Trends
3. Levels of psychological (support and resistance)
4. Period of time that occurred.

This technical indicator created by many technical analysts, and if the collected amount can reach 250 more, with a variety of purposes. And with the level of complexity is different. But little input you do not need to use all (because it was impossible too), just use whichever you really understand it, a little better and simpler, but you master and know where the strengths and weaknesses.

Indicators apply the principle of mathematical and statistical sciences. So the question, well I must be dong statistical science? The answer is not necessary, the application program forex, most of them have been able to provide a direct indicator that you apply in the charts. For those of you who have advanced (forex & statistics) you can also create an indicator based on your tastes. Although this congenital indicator can already be directly applied and used on the graph, you still need to study the usefulness and function of the indicator.

Several indicators are commonly used:
Broadly speaking there is three types of indicators are:

1. Price Momentum Indicator (Oscillator): This type is used to identify indicators of oversold or overbought situation. Momentum indicators are also used to see whether a trend will still continue or fizzle out.
Example indicators:
- Stochastic Oscillator
- Relative Strength Index (RSI)
- CommodityChannel Index (CCI)

2. Following Trend Indicator: This indicator is used to identify the beginning and end of a trend or when a trend will change so that can know when the best time for the opening and closing positions.
Example indicators:
- Moving Average (MA)
- Moving Average Convergence – Divergence (MACD)
- Directional Movements Index (DMI)
- Parabolic SAR

3. Volatility Indicator: This indicator is used to see the views of market power price fluctuations within a certain time period. The market is said to have high volatility when going up and down price movements are sharp or very volatile where there is a big difference in price between the highest and lowest prices.
Examples of indicators: – Bollinger Bands

The name of technical indicators are also a lot in common with the name of its discoverer, example an indicator called Bollinger Bands created by John Bollinger, a Jewish Technical Analyst.
Fundamental Analysis
- It takes time to obtain information.
- Nature subjective because it involves a lot of people’s opinions.
- Difficult applied to an inefficient market.

Technical Analysis

- Requires lots of data to support accurate prediction.
- Required proficiency trader (read chart)

- More suitable to be applied in the long term trading period.

Basically playing the forex is to predict a currency pair to rise or fall in value. And the confidence of the predictions that we achieve in open position / trade. And in forex there are only two kinds of open positions. Namely
1. BUY / BUY / LONG: predicting value pair INCREASED
2. SELL / SELL / SHORT: predicting value pair DOWN

In order to be clearer, see the illustration below.

1. Handoko entrance in a position to BUY EUR / USD at 1.3000, after a certain time
Handoko SELL (CLOSE) at 1.3064 then Handoko gain profit 64 pips / point (the smallest unit in forex).

If Handoko SELL (CLOSE) in 1250, Handoko suffered a loss of 50 pips

2. Erik entered in positions SELL GBP / USD in 1500, after a certain time
Erik BUY (CLOSE) in 1400 then Erik gain 100 pips / points (the smallest unit in forex).
If Erik BUY (CLOSE) in 1650 then Erik loses 150 pips

Note, if you look in the application:
* Rates are used when OPEN BUY / LONG is the purchase price (ASK) and the prices used when you close / liquid is the selling price (BID).
* Rates are used when OPEN SELL / SHORT is the selling price (BID) and the prices used when you close / liquid is the purchase price (ASK).

Easy is the way to play, but hard to win or gain profit. You must be brave sacrifice of time, even thought the money so that later you can really become expert. You must test your skills in a range of time, 1-2 yrs so really your trading method and the way a tested and proven.
Here are some tips that may help you in forex trading:

1. Demo Account: Demo account / virtual provides an opportunity for us to trade significantly, but using virtual money. So that you can use to test the ability and methods used for your router. And be sure to test it in a long time range 6 months to 1 year. New thereafter if you managed to boost your profits by becoming a live account.

2. Learning: Many methods of analysis method used in playing forex. Generally is a technical and fundamental analysis. Then the second study the science of it either through books, forums, seminars, e-books, or to the people who are more experienced in that field.

3. Personal style trading: After you read the articles (web / forums / etc) you will be confused by the many kinds of trading styles. This is reasonable because this style is highly subjective, masing2 different people. So grab a suitable one with your style (time, risk ratio, emotions) and the style test and evaluation. Until eventually you find a style of play forex your trading style and of course bring in profit.

4. Community: Try to form a community (friends) so you can quickly exchange information with the forex. This will speed up your learning.

5. Do not be a gamble: People gamble often rely on ‘feeling’ and ‘emotion’, if this is a feature or your style, you better not forex trading. You will lose and just burst spending money alone. You must know, you should not be emotional, you need discipline and you should be rational and can think clearly and self-control.

1. Line Chart

2. Bar Chart

3. Candlestik Chart

For bar charts and candlestick:
Open: Opening price (initial)
Close: closing price (last)
High: Highest price
Low: The lowest price
Calculated within a certain timeframe / bar = 5menit, or 30 minutes, or one hour or one day.

To learn candlestick chart patterns and its mean, please see here.

1. Fundamental analysis: to rely on news / rumors in the market.

2. Technical analysis: by relying on charts and mathematical formulas.

Fundamental analysis:
Fundamental analysis is the analysis that relies on the news happening in the world market. Or that was circulated in the market. This news content can drive a market trader’s emotions to determine the value of a currency, equity or other instruments. One example is the Central Bank rate hike by the Fed (U.S. central bank) can mean a stronger dollar. Rising prices will hoist petroleum stocks related to commodities and other things. If you do not like the analysis of complex-complicated (count, graph, etc.), then it is now time for you to learn this fundamental analysis.

To learn fundamental analysis correctly then you should study economics, the financial macro, for example why rising interest rates can make the value of the currency to strengthen. Here will not be described in detail about the economic laws. But there is some news (economic indicators) that if you can use as a reference.

Political & economic conditions of Americans were very influential to world economic conditions; therefore the news and U.S. economic data is often used as a reference by investors against major world currency movements.
Economic Indicators Increase / Decrease U.S. $
1 Average Earning Rise Stronger
2 Balance of Payment Rise Stronger
3 Budget Deficit Down Stronger
4 Business Inventories Down Stronger
5 Capacity Utilization Rise Stronger
6. Car Sales Rise Stronger
7 Chicago PMI (Purchasing Management Index) Rise Stronger
8 Constuction Spending Rise Stronger
9 Consumer Confidence Index (CCI) Rise Stronger
10 Consumer Credit (CI) Rise Stronger
11 Consumer Price Index (CPI) Rise Stronger
12 Consumer Spending (Expenditure) Down Stronger
13 Cost of Living Rise Stronger
14 Current acount Down Stronger
15. Corporate Profits Rise Stronger
16 Deflation Rise Stronger
17 Discount Rate Rise Stronger
18 Durabel Goods Orders Rise Stronger
19 Econimic Monetary System (EMS) Rise Stronger

20 Factory Orders Rise Stronger
21 Federal Budget Rise Stronger
22 Federal Reserve Fund Rise Stronger
23 Gross Domestic Product (GDP) Rise Stronger
24 Gross National Product (GNP) Rise Stronger
25 Housing Start Rise Stronger
26 Industrial Productions Rise Stronger
27 Invisible Trade Down Stronger
28 Jobless Claims Down Stronger
29 Leading Indicators Rise Stronger
30 Money Supply (M1, M2, M3, M4) Rise Stronger
31 National Association Rise Stronger
32 (NAPM) Rise Stronger
33 Non-Farm Payrolls Rise Stronger
34 Personal Expenditure Rise Stronger
35. Personal Income Down Stronger
36 Prime Rate Rise Stronger
37 Product Price Index (PPI) Rise Stronger
38 Public Sector Debt repayment Rise Stronger
39 Retail Sales Down Stronger
40 Trade Balance Rise Stronger
41 Trade Devicit Down Stronger
42 Trade Weighted Index Down Stronger
43 unemployment rate Down Stronger
44 Unit Labour Cost Rise Stronger
45 Value Added Tax Rise Stronger
46 Visible trade Rise Stronger
Once you know all this, the question is where I can obtain the data or news. You need not to be sweat. With the development of the internet nowadays, you can get data/news quickly and easily.
You can see it in: forex calendar