How is Technical Analysis used in Forex Trading?

[FXTradingPro]

In the mid-18th century, a Japanese merchant named Munehisa Homma invented technical analysis for trading rice futures. His book, “The Fountain of Gold,” elaborated a method for trading based on market psychology

https://fxtradingpro.com/technical-analysis-used-forex-trading/

[LUCKMCFLY]

I have not read the book but I think it is very good, the Japanese always do incredible things, however, the technical analysis must know how to carry it, because it often fails if it is done in the wrong market phase, before doing any technical analysis , a previous study of the market must be made, to make decisions based on technical analysis that make sense to the market analysis that was made, in this way it is less likely to lose money.

[BADecker]

Market psychology can be extracted from historical data by various chart indicators.

[BADecker]

^^^ It works like this. Crammed into the historical data of the various Forex currency pairs, is the reasoning of what happened. Isaac Asimov coined the term "Psychohistory."

Psychohistory "is a fictional science which combines history, sociology, etc., and mathematical statistics to make general predictions about the future behavior of very large groups of people..." - https://en.wikipedia.org/wiki/Seldon_Plan.

Forex historical data is simply a condensed form of psychohistory regarding certain investments. Since the investments have to do with all the major currencies, they reflect all of society's usage of money, which is usually called the economy. This means that we have the reflections of the many turning points in the economy of the world, even though we don't have the reasons for the turns.

When one is simply interested in the ways that currencies react, without being interested in the underlying reasons, one of the best methods is Forex historical data. Psychohistory was determined by observing and combining the historical data of gigantic groups of people. And people regard money as one of the most important parts of life. So, what better place to go to understand the basic directions that people think than in the money historical data... the Forex. Technical indicators reflect the direction of the Forex, and the direction of the nations thereby.

Psychohistory - Forex historical data ... expressed by Forex technical indicators.

[LUCKMCFLY]

I think that the psychology of the market is a term that does not exist, because psychology is only psychology, what some do is apply the knowledge of psychology to have to face some events or cases of operators when they suffer losses.
That's why when they talk a lot about market psychology, or trading psychology, it seems to me that it's something that does not exist, but that does sell a lot.