Distortions in the foreign exchange market happen when the exchange rate strays from its true value, showing market inefficiency. A model was created where traders make decisions based on technical or fundamental rules, but errors in information processing lead to distortions. Over time, these mistakes are corrected as traders learn from macroeconomic imbalances, eventually bringing the exchange rate back to its true value. This model reflects real-world data, including the non-stable distribution of returns.