Market Analysis.

You should not hope that after studying the technical aspects of Forex trading you will be able to successfully trade on Forex; the key to profitable trading has always been and is market analysis.

Using analysis, you can determine both the current state of affairs and the immediate prospects for the development of events; the data obtained is used in making a forecast of exchange rate movements.

In stock trading, there are two main areas in which market analysis is carried out - fundamental and technical, the use of each of which has its own characteristics.

First of all, it should be noted that the use of one of the types of analysis is mandatory when trading on Forex; a simple glance at the chart does not always allow you to correctly assess the situation, which is the reason for the occurrence of unprofitable transactions.

Fundamental analysis is based on a logical approach to assessing past events.

After all, as you know, any political or economic news can cause a change in the price of a currency. Therefore, the trader can only wait for an important event and draw his own conclusions about the prospects for the exchange rate movement. Based on fundamental analysis, you can also form your own opinion about the current situation by analyzing the history of past events.

Technical analysis is based on the principle that the price includes everything, that is, by analyzing the chart of a currency pair, you can draw all the necessary conclusions.

The analysis is based on a study of the price of a currency pair, or rather such indicators as lows, highs, closing and opening prices, volatility and correction value, and others.

When conducting technical analysis, a huge number of different tools and methods are used, which allows you to accurately determine the most successful points for opening new transactions.

In the literature, such a concept as intuitive analysis is sometimes found, but in essence it is just a simpler option for using a combination of technical and fundamental analysis, since the trader predicts the trend not at random, but on the basis of certain data.