Let's start with the assumption underlying technical analysis. In this case I would take an extreme approach so that you can understand how a technical analysis used in obtaining the gain in forex trading. Of course, in practice it is not so. You can combine both analysis (fundamental and technical) in order to obtain the best trading system for you.

The chartist (those who perform technical analysis), believe that they can learn the patterns of price movements in the future exchange rate based on observations with the exchange rate movements in the past. In short they are holding this jargon: "History always repeats it self." Philosophy is of course contrary to the fundamentalists in which investment decisions on the value of a currency based on economic fundamentals, monetary policy and the country concerned.

The main weapon of the technicians is a graph (chart - that's why they called chartist). Through this chart they can see an ongoing trend, the trend period, the volume of transactions and psychological levels that exist. If you have been able to find 4 that, of course a big advantage would be rushing to your pocket. Let me repeat:
1. Trend

2. Volume of transactions

3. Levels of psychological (support and resistance)

4. Period of time that happens.

Yup, that's all. It is the goal of the chartist is to predict these four things. But now the question is how accurate our ability to predict the price? Well that's what it should continue in refining each day. There is no single perfect method of both fundamental and technical. Experience and self central role here.

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