4. Technical analysis is generally associated with price charts. Partially, because historical and current price action is much easier to observe in charts than in numbers. Besides, technical analysis actively applies different indicators that are derived from and linked with price level. So, to see some levels that market couldn’t break, patterns and indicators are much easier with charts, rather than with any other way. 5. Results and decisions that could be made with technical analysis are very subjective. Let’s assume that all our pipruits have the same degree of knowledge of technical analysis. Now, if we ask them to analyze some chart and tell us the decision – buy or sell, you’ll see very different conclusions about that. Although there are quantitative methods of technical analysis that exist also. 6. Although technical analysis has many different subtypes and methods, there are still some general concepts exist, such as classical analysis, wave theory, Fibonacci numbers application to markets and large number of indicators (moving averages, stochastic, etc). Almost all subtypes of technical analysis are based on single or several general concepts. Pipruit: Cool. But now I think that Technical analysis is not as easy as I’ve thought before. Better me start with fundamental analysis, I think. Commander in Pips: Oh, don’t worry. It doesn't matter which is better to start with, because you will pass through all of them, and you will have to study hard to know all three types. Ha ha! Pipruit: Thanks for pepping me up, Sir. P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.