Forex Strategy: Fundamental analysis and technical analysis are the two basic strategies in the Forex market – as is the case with the market patrimonies. Sin But technical analysis is the method most recent and popular analysis, by individual traders used Forex. a brief summary of two types of analysis that you can perform to trade in Forex is offered here:
Fundamental Analysis
Now, if you think it is difficult to assess a company just try valuing a whole country! Forex fundamental analysis is often very complex and is normally only used to predict long-term trends. Some operators, however, do fundamental analysis in the short term strictly on news releases. There are several key indicators of currency values published in various time periods:
- Non-Farm Payrolls or NFP
- Purchasing Managers Index (PMI)
- Consumer Price Index (CPI)
- Retail Sales
- Durable Goods
Keep in mind that these reports and news releases are not the only fundamental factors to consider. There are many meetings to be observed, because it can detect any comments or contributions that can affect the markets as much as (if not more) than any report. Forex These meetings are often called to discuss issues of inflation, interest rates and other issues that could affect currency valuations.
Even changes in how things are formulated to address certain issues such as the comments of the president of the Federal Reserve on interest rates can cause a volatile market. Two important meetings that must be taken into account are the Federal Open Market Committee and Humphrey Hawkins Hearings.
simply review the comments and read the reports, it helps fundamental Forex analysts to gain a better understanding of market trends and long-term lets operadres Forex short-term benefit from events that are unusual. An important aspect of fundamental analysis is the economic calendar. This is a calendar created by economists predict where economic statistics and figures according to historical data from previous months. Your broker may also be able to provide access to this information in real time.
Technical Analysis
A technical analysts, like their counterparts in asset markets, like analyzing price trends. The only major difference between technical analysis and technical analysis Forex asset is time. Keep in mind that the forex markets are always open 24 hours.
This means that some types of technical analysts need to take into account the time and modify strategies for working with the forex market 24 hours a day.
Some of the most common tools of technical analysis in Forex are:
- Elliot Wave
- Fibonacci
- Parabolic SAR
- Pivot Points
Many technical analysts combine technical means to build more accurate forecast. (Often Elliot waves and Fibonacci combined). Other trading system constructed by repeatedly simulating the conditions of purchase and sale.
Choosing Your Strategy
The most successful traders develop and looking to hone their trading strategies. Some focus on the study or calculation, while others use broad spectrum analysis as a means to determine their trades. Most experts suggest that you try to combine fundamental analysis with long term technical analysis for the short term. Of course, in the end, the individual trader has to decide what works best for him. Before you can start trading in Forex, you need to open a demo account and paper trade to be practiced until you can make a consistent profit. Many people who have no experience quickly lose a lot of money. To trade Forex need to take the time to learn.
Never be swayed by their emotions, reverse slowly and quietly. You can not keep track of all stop-loss points if you do not have the ability to run on time. You should always put your stop loss and take-profit points automatically. You must abide by its decisions. Follow trends in the Forex market is a widely used strategy. Never operate against the trend, since they go against a trend may result in losing all your capital. Trade with the trend maximizes its chances of success.
The forex market is the world’s largest market and many people are increasingly interested in trading Forex. But before you start trading, make sure your broker meets certain criteria, take your time to find a trading strategy that works for you.