Forex - Doing the analysis

miskec

Active Trader
Mar 16, 2009
26
1
32
Analysis is very important in every human trade, although it is almost never easy to do and usually takes a lot of time. Analysis makes decision making a lot easier and the outcome is usually satisfactory. When trading on Forex, analysis is very important because you can’t rely only on the money management strategy to succeed. You can forecast the direction of the market basing on your technical and fundamental strategies to see their effectiveness.

You'll be able to make forecasts of price movements by applying the past data of the prices and graphs to the technical analysis methods. You can predict future prices with the level of accuracy dependent on your technical analysis skills using the graphs of the rates you observe. Trading with some brokers you can see technical indicators along with the graphs. You can apply it to your demo account and estimate your prediction skills necessary for planning trading decisions.

It is impossible to choose the most effective indicator among lots of various ones. Each trader has to decide for himself which indicator is best for him. You can't find any magic formula; you just see the graphs, make your forecasts and find out whether they come true seeing the values in the news later. There are a lot of technical analysis indicators available but here are the ones which are the most wide-spread: the Moving Average Convergence Divergence (MACD), the Bollinger Bands, Pivot Points, RSI, Stochastic, Fibonacci, EMA, Elliot Waves.

Fundamental analysis is another tool that maximizes your profit and minimizes your losses on the trades. There are some traders who prefer only one kind but the majority prefers both. Fundamental analysis means trading following the news, e.g. telling about the economies or unemployment rate in the countries of the currencies you trade. They can also tell about the events that can have a strong influence on the currencies' exchange rate.

If you are interested you can read rest of the article here
 

Pinalli

Master Trader
Jan 31, 2009
334
4
54
yes definitely.... I feel you should involve yourself more on discussion and less on promoting your blogs. I would like to discuss skills rather than reading articles. :)

Sorry if you feel hurt but its just a suggestion... no hard feelings.
 

andy003

Master Trader
Jan 7, 2009
252
1
47
yes definitely.... I feel you should involve yourself more on discussion and less on promoting your blogs. I would like to discuss skills rather than reading articles. :)

Sorry if you feel hurt but its just a suggestion... no hard feelings.

It need skills to write the blogs. lolz
 

andy003

Master Trader
Jan 7, 2009
252
1
47
On Friday, the Federal Reserve of the US released an expected report which has shown that the present financial condition and wild market instability have ‘substantially reduced’ the fiscal reserves at some of the major banks are under operations. However, the report has shown that the most firms still hold excess reserves in accordance with the previous regulatory standards. so I guess there is going to be a significant movement in USD soon.