Testing the Power of Technical Analysis for Forecasting Market Trend

The aim of this study is to investigate the power of technical analysis for forecasting the market trend and future price in FOREX market. In order to achieve this result, the study analyzes the four most trading currency pairs in FOREX market during November of 2013 and utilizes various tools and indicators which are presented by brokerage companies in Meta Trader 4. The study affirms the power of technical analysis in FOREX market. The result shows that 58.33% of entire positions are terminated with profit; 32% in hourly, 15% and 11% in daily and midday respectively. The study has also confirmed that GBP/USD is the most reliable currency pair among the others in the period study was carried out.