Independent analysis of the Forex market
Trading on the foreign exchange market is always carried out in two stages: the first is analysis, and then, based on the data obtained, forecasts of exchange rate movements are made.
The main object in this question is the chart of the currency pair, and it is on the basis of its history that all the relevant conclusions are made.
To verify and confirm the obtained data, several methods of currency market analysis can be used at once, each of which is aimed at studying specific indicators.
Forex analysis methods.
There are three main methods used to analyze historical data: Graphical, Technical and Fundamental.
Each of them does not give a 100% result, so to be completely sure, it is better to use at least two of the three named options.
Graphical – the name of this method speaks for itself; it is based on the detection of graphic figures that arise as a result of trend movement.
It is implied that there is a certain pattern, based on which, after the appearance of a particular figure, the trend will reverse or continue its movement.
It is based on this principle that the classification into reversal figures and continuation figures of the forex trend (trend) occurs.
The effectiveness of this method is around 65-70%, the main difficulty is to notice the new figure in time.
More information on candlestick analysis - http://time-forex.com/ys
Technical – This option also involves analyzing forex charts. It's based on the premise that the price of a currency pair is all-inclusive, meaning there's no point in analyzing external factors. This is why this method is the most widely used.
Its main stages are: constructing support and resistance lines, working with channels, calculating levels and minimum-maximum price points.
To automate this process, specialized Forex indicators are used. They not only take over some of the routine work but also produce more accurate results. Sometimes they even predict future trend movements, but that's more of a fantasy.
Basics of Technical Analysis - http://time-forex.com/tehanaliz
Fundamental analysis is the simplest and therefore most popular method among novice traders for analyzing the Forex market. It is based on the study of external factors that influence exchange rates.
The main source of fundamental analysis data is the economic calendar and news feed in your trading terminal. You can also obtain information from virtually any source—newspapers, magazines, and internet news sites.
The main thing is that you can correctly use the information received in your trading; there is nothing complicated here; you just need to establish the relationship that exists between the event and the currency.
For example, the Bank of Japan intervened in the foreign exchange market, which means the supply of Japanese yen increased, and the forex market will definitely react to this event by lowering its exchange rate.
The only downside to choosing this method is that the exchange rate may not always react appropriately to a given event. Therefore, as in previous cases, it's important to obtain confirmation of the signal.
All about fundamental analysis - http://time-forex.com/fundamental
Intuitive – based on intuition and assumptions, this type of analysis has recently emerged and is most often used by traders with extensive practical experience. They don't simply guess the trend, but base their assumptions on subconscious analysis and knowledge of the price behavior patterns of the chosen asset.
Forex market analysis serves as a source of data that can be used to predict the future price of a given currency pair.
Without this, you will open trades at random and close them without receiving the potential profit. Market research is one of the integral components of successful trading.
