The motivating belief among all technical analysts is that past and current technical data (open, high, low, and closing prices) provides sufficient information to forecast price fluctuations for the immediate future. This genre of trader also believes that identifiable price formations and patterns recur with such a high degree of frequency as to warrant market entry orders. This microcosmic viewpoint, however, is based on a rather restricted set of input data: the open, high, low, and closing prices. Futures speculators also have the luxury of volume and open interest, two fields not available to Forex traders owing to the decentralized nature of the foreign echange markets. The small-cap short-term Forex trader who remains glued to the computer monitor for hours on end is essentially granted only one piece of incoming information the prevailing market price. However, there exists a myriad of techniques by which the collection and storage of the streaming data can be massaged and coerced into revealing critical properties and characteristics about the underlying currency pair. It is this process that makes the employment of technical analysis a potentially profitable occupation. Forex shockwave analysis is an emerging branch within technical analysis that relies heavily on the principles of financial wave theory. Traders will find many roundbreaking innovations in the chapters that follow, several of which they may mold and modify

to meet their trading goals and ambitions.

The Fundamental analysis is a study of the economy and is based on the assumption that the supply and demand for currencies is a result of economic processes that can be observed in practice and that can be predicted. Fundamental analysis studies the  relationship between the evolution of exchange rates and economic indicators, a relationship that it verifies and uses to make predictions.

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