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Between the two main schools of thought for analyzing the financial markets, technical analysis often trumps fundamental analysis. If you look around, technical analysis is more widely quoted than fundamentals. And almost any forex trader you meet is more likely to learn about the technical indicators rather than the fundamental analysis.
Part of this is because traders prefer to make a quick buck rather than wait and invest in the long term.
Technical analysis is the study of past price history to predict future price action. In combination with the volatility in the currency markets and the use of leverage to help traders maximize their profits, traders make their gains.
You will, therefore, see many traders focusing on building a trading system, or looking for an automated solution. They do this to take advantage of technical analysis for the mere purpose of maximizing the returns from forex trading.
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