Learn Forex Analysis

Basically forex trading is an art, in this case it is the art of analysis. How can that be? Clearly very able, each person/individual can generate lucrative trading style/art. Although you can be learned at the same person, not necessarily the outcome is the same for any followers. And not necessarily the same even with his own.

The ability and skill (skill) analysis, will be one of the main factors in the success or failure of a person in the world of forex trading. Good forex analysis will be able to always be consistent/repeat the profit, as well as being able to survive a long period of time that can be for all.

Well let's get started learning the basics of analysis in forex trading. Broadly speaking there are two basic types of approach/yg analysis commonly used.

1. fundamental analysis.

2. technical/technical Analysis.

Which is the best? don't get stuck for favoring one of them. And a waste of time to search for the article comparison where yg better. Although the above written fundamental analysis at no. 1, this does not make it better rather than technical. So let's review by relaxing one by one, and then put back together for the benefit of the magnitude of the two.

Fundamental analysis

Fundamental analysis is a way of looking at the market through economic conditions, social, and political forces that affect supply and demand. In other words, you look at the economic conditions, or conditions either yg yg bitch. The idea behind this fundamental analysis is that if the economy of a country with good, then their currency would also be nice. And result in a lucrative confidence increased from other countries against these currencies.

For example, the value of the us dollar continue to rise because the u.s. economy strengthened/improved. The consequences could be higher interest rates to control inflation, the effect the value of the dollar will also continue to be strengthened.

Above is one example of an illustration of how fundamentals can affect the value of the currency. In the articles on this site you can find just about any type of news/yg factor included in the fundamentals as well as factor/news anywhere is most influential. For the moment we take the line essentially alone, that fundamental analysis is the way to analyze the market through the economic conditions of the countries concerned.

Technical Analysis

Technical analysis is the study of price movements seen in terms of mathematical analysis. From here we can imagine there will be graphics or mathematical formula/calculation in it. With historical data serja price movement now imaginable then analysis could provide projections on the value of where prices will go up, down, or turn around. Or it could be called a ' trend ' this is sought in technical analysis. By identifying trends or patterns correctly, will be able to help you find the best trading opportunities.

People say that in the technical analysis TREND is your friend. If you are able to recognize trends should your friend, then he will give the money (profit) to you.

Up here you so discouraged? Well I am not good at math, I would kepayahan using technical analysis, unimaginable I got dizzy see numbers and formulas. ..

2:).. be patient to follow and read our articles. Not as complex as yg imaginable ... And believe me it is not worth the losses You would reply paced (later in trading) compared to know well technical analysis.

The link between Fundamental and technical analysis

To become a master forex, you need to know how to effectively use both types of analysis. Let's look at an illustration that shows how focusing on just one type of analysis could turn into a disaster.

* Let's say that suatau time you see Your graphics (technical) and you find an opportunity that very good trading opportunities. With a fiery spirit while you dream of that money will come down like rain from the sky. You think, wow I have never seen a sweet opportunity like this (I love the graph I).

* With full confidence soon you proceed to enter the order of transactions to brokers. With a big smile, impatiently await Your reply seems to have advantages in front of the eyes.

* After some time passed, and the order has been open, lho .... price movements become opposite and move towards another reply, you see the losses of 40 pips. It turns out do you know, just there is a reduced rate of interest on the currency you are holding reply, so that the value of the currency is weakening, and now everyone in the market is moving to remove these currencies (against all Your chart analysis).

You might think that the illustration above is too over-complicate or dramatizes. Yes. Perhaps, but at least you can get the point of the illustration. Furthermore suppose now we back