How to Read the Price Action

Technical analysis takes the forex concept one step further, and claims that all that matters to trading is the price action by itself. This type of attitude is justified on the basis of the belief that the price action, created by knowledgeable and profit-hungry traders, reflects all the information available to the public at any one time, and it is futile so seek an edge over the market by trying to stay updated on all data. Not only it is impossible, technical analysts contend, it is also useless, since the price already incorporates all the available information in itself according to the interpretation of the best and most powerful minds in the forex market.
he tools of technical analysis are all applied on the price action as depicted on charts. Indicators are used to evaluate any price pattern to generate buy or sell signals, while price patterns are interpreted to identify the underlying momentum. Technical analysis does not claim to create error-free, concrete answers to questions in traders' minds, but it does offer to identify the scenarios where the potential for a profitable trade is greatest.