MACD Divergence or Moving Average Convergence/Divergence is a useful indicator for spotting major changes in market trend, indicate trend direction and for giving hints of a possible market reversal. It is one of the strongest signals generated by technical indicators such as crossovers and divergence from price on a daily chart.

Relative Strength Index (RSI), one of the most popular financial technical analysis oscillators is best adapted to work in markets, which is range-bound. Developed in 1978 by J.Welles Wilder its popularity is mainly due to its easy interpretation.

Forex or Foreign Exchange is the largest international market for trading of foreign currencies between large banks, money speculators, financial institutions, multinational corporations and government. The market essentially is a reflection of how international currencies fare against each other in a day's trade.

Fibonacci sequence - 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.

Interpretation of the Fibonacci numbers in forex technical analysis anticipates changes in trends as prices approach lines created by the Fibonacci studies. When used in technical analysis, the golden ratio is typically translated into three percentages: 38.2%, 50% and 61.8%. However, more multiples can be used when needed, such as 23.6%, 161.8%, 423% and so on.

There are many chart patterns in the forex market: Trend, Support, Resistance, Flag, Pennant, Wedge, Gap, Head and shoulders, Rectangle, Ascending triangle, Descending triangle, Symmetrical triangle, Breakout, Double top, Triple top, Double bottom, Triple bottom, Price channel, Rounding bottom, Rounding top. The charts below show some of the chart patterns in the forex market.

The RSI is a price-following oscillator that ranges between 0 and 100. A popular method of analyzing the RSI is to look for a divergence in which the currency price is making a new high, but the RSI is failing to surpass its previous high. This divergence is an indication of an impending reversal. When the RSI then turns down and falls below its most recent trough, it is said to have completed a "failure swing." The failure swing is considered a confirmation of the impending reversal in the price of the currency.

A cycle is simply a regularly occurring sequence of events. The sun rising every morning and setting in the evening is a cycle. The four seasons are one cycle. In forex market, a cycle is loosely defined as price movement of a market from a local bottom to a local top and back again.