It should be also remembered that the movement of the forex market is so dynamic, so you are required to have at least one analysis as a guide to read the direction of price movement.
Analysis In Forex Trading
Technical AnalysisTechnical analysis is the observation of the price movement that occurs seconds, hour after hour, day after day in a specific time period which is usually shown in the form of a chart. The main idea is to use data on the prices of 30 which are then processed to get information where the next price movement direction. The most important thing in the technical analysis is able to recognize the trend as early as possible. Many traders who assume that all matters relating to the price of a currency is already reflected in the price values in the chart.
In using this analysis a trader was aided by the charts, indicators, and some of the tools that are already available in the Trading Platform of a broker. You can use it any time. Later I will write about some of the indicators in the technical analysis that you can use with simple in trading.
Fundamental AnalysisFundamental analysis is a way to analyze the direction of price movement by utilizing economic data, social, politics of a country that is linked to the country's currency. A powerful country economically will have a stronger rate compared to other countries.
How to get fundamental data? You can get it from financial information sites available on the internet. There are several sites that can be used as a reference, among others, Bloomberg, CNN, Forex Factory, as well as sites that berkewenangan Government in issuing an economic data. There are a few very influential economic data on price movements of interest rates, GDP, Inflation Data, the labor Data.
So a brief overview Analysis in Forex Trading. In the next article I will be much more in both the peel of this analysis.