Technical analysis is like a knife. It can be used for good or evil. It is up to the handler of the knife, whether he will follow in the footsteps of Jack the Ripper or a renowned neurosurgeon. There is a long list of traders who have dabbled in technical analysis, only to quickly give up in frustration and proclaim that technical analysis “does not work”. This observation is correct, only because any set of tools which are utilized incorrectly will fail in their intended task. The added complication lies in the fact that even if technical analysis tools are used correctly, they may still fail, but will fail less often than they would succeed, leading to profitable trades.

The five main ingredients to effectively use technical analysis

1. Choose a security.
2. Decide on a timeframe (Hourly, Daily, Weekly, Monthly).
3. Backtest.
4. Money management.
5. Trader psychology.

Successful traders
With fewer than 10% of active traders being consistent winners, we are the first to admit that merely attending the seminars is not a prescription for success.  Technical analysis is not for everyone and requires the trader to attain a mind-set that allows him to remain consistent and disciplined in his decisions, even when logic and sentiment say otherwise. The hundreds of professional traders that have attended the seminars and are today successfully using the complete trading system presented in the seminars, are living proof that technical analysis does work and can be used effectively to trade. 

Technical analysis Vs Fundamental analysis
Although it is possible to trade purely on technical analysis, a good technician knows his fundamentals. Technical analysis is more in touch with the market sentiment because it focuses on what the market "is doing", compared to what the market "should be doing".  The fundamentals needed to trade in the foreign exchange market does not require a degree in economics and center on:
• Economic growth (GDP).
• Interest rates.
• Trade balance.
• Political stability.