FOREX ANALYSIS
Analysis is the tools we use to make to make a profit in the forex market. It is seperated into technical and fundamental. Technical analysis is the art of using charts to deciper trends and patterns in the forex market. Fundamental analysis is based on logical reasoning of events such as interest rates an economic news.
Technical Analysis
Technical analysis is method used to determine the future price based on past trends and patterns in the price. Its main tool is the simple price chart where the user will try to gain as much information regarding past movements as possible. The theory behind technical analysis is that all the information available at that moment is already reflected in the price. A number of different price charts, patterns and oscillators are used to determine the future movements. Click on the links under technical analysis to learn more.
Fundamental Analysis
Fundamental analysis is based on Economic information and breaking news. The analyst will try do determine the future value of a currency by studying the economic data of each country and determining which currency will go up and which will go down. Trading the news is a method where a trader will attempt to trade on the latest available news either through public releases from governments(see economic calendar) or shock events.
Before we step into the forex market one last thing has to be taught. The leading reason for failing traders is money management. Read this before doing anything.