Tuesday, January 17, 2017

Analysis of the Most Prevalent in Forex Trading

In terms of learning forex analysis, in principle analysis of the most dominant and superior use is a technical analysis when compared to fundamental analysis. Typically professional traders when faced with the analysis of data where both opposing the step taken is to follow technical analysis.

 
The price movement caused by fundamental news was transitory nature of time, and further movement would always follow the previous trend.
Understanding Technical AnalysisTechnical analysis is an analysis using the pattern of price movements in the past to project the price movement for the future usually by using a graph.
The price graph formed from the main components comprising; The opening price (Open), Highest Price (High), Lowest Prices (Low), the Closing Price (Close), Transaction Volume (V), or to make it easier to remember it can be shortened by OHLCV.
From this OHLCV pattern by combined with the science of statistics in order to obtain indicators on modern technical analysis tools are commonly known among other things:1. Trend Following Indicators, indicators in this category such as; Moving Average, MACD, Parabolic SAR.2. Momentum indicators, category; Stochstic, William% R, RSI3. Volume indicator, category; On Balance Volume (OBV), Volume Oscillator (OSCV)4. Volatility Indicator, examples of indicators which determine the level of price volatility is Bollinger Bands and Keltner Band.
  

Know term support and resistance in the trend of technical analysis indicators




 Support and resistance is an important indicator of where the forces of supply and demand meet.
Support is boost the price at which demand is considered strong enough to prevent the price tends to go down, demand is expected to be greater than the offer, the point of support is usually determined by the price trend is in the lower level.
Resistance is where the sale price is considered strong enough to prevent the price from rising further, and it is believed that supply will overcome demand and prevent the price tends to rise above resistance.

Fundamental analysis is the basisBasic fundamental analysis is to consider information or news coming from official institutions / government, Print / Electronic, Indiv.
As for the nature of fundamental news can be grouped into several parts:

1.
Demand is bullish news, news picture of market price movement looks as if it will fall but actually increased. Examples of bullish news is: Bad weather / unfavorable, conseccutive 3-6 days up / firmer (rose), Triggered buying, bottomside / bottomout, Buying power and so on.
2. News deals are bearish, market price movements picture looks as if it will go up, but the actual prices tend to fall. Examples are bearish news: Weather good / favorable, 3-6 consecutive days down / Easier (weakened), Lack of Demand (Demand weakened), Triggered selling, topside capped (highest price has been reached), harvesting, selling power, Ample of stock (stock abundance), and so forth.

Several fundamental factors which influenced the price movement of forex trading:

1.
Factors Financial Policies, changes in fiscal policy of a country, the value of revenues, exports, unemployment.
2. 
Interest Rate Movements value.
3. 
Socio-political factors, such as: change of state leaders, ministers in the cabinet, internal security, political stability.
4. 
Unrest and natural disasters

 

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