There are two types of analysis of forex movements. There is a fundamental and technical analysis. Some traders prefer technical while the second core. there is no point arguing which is better. The choice depends on what the trader thinks might help him make money from forex trading. The best would of course be a combination of the two.
For traders who rely on fundamental analysis to predict currency movements, provide good opportunities for setting-up a potentially profitable trades. market usually reacts to specific news such as new trade policy and political action or countries often traded currencies. News of the economic situation and the disaster is almost the same effect on the market. Predicting which way currencies will go as a result of the influence of the news is not very easy task, but once discovered patterns;. currencies will react a certain way to certain news, things are a little easier to the general rule is that events tend to weaken the economy of the country tend to also weaken the currency.
The funny thing about this is that traders are actually monitoring the reactions of other traders on the news. Dealers will react this way or that depending on how they interpret the news. It would be nice to still be able to tell where other traders will go to practically determine where currencies will end. This is not an easy course, but there are ways to detect patterns of currency movements after every news Forex news releases.
Using Forex software provides detailed historical data of daily movements in the market, can say what the effect of news had on the market and how his fellow traders read the news. Fundamental analysis allows a trader to detect patterns in forex movement after the publication of news and efficient method for the development of appropriate strategies forex trading.
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