In Forex trading, you trade in currency pairs. This entails picking a currency of one particular country against that of another and deciding whether it is going to do better or worse. You determine this by what we call fundamental analysis. Thus knowing how the country is doing socially, politically and economically.

You are able to make predictions based upon what your forex charting tells you. If a currency has been doing for a while, then it’s likely to continue that for a while and if it has not been doing well, you should get out of that particular trade.