Concept Analysis in Forex Trading

As mentioned in a previous article (Forex = Judi, negative rumors about Forex), forex without knowing the analysis means we do gambling therein. And obviously, with gambling will lead to losses. Unfortunately, events like this are not only experienced a few new players in the forex world. No one has experienced loss of tens to hundreds of millions realized without a good analysis then forex trading is equal to gambling.That is why Belajarforex trying to emphasize the importance of analysis in forex trading. Without it, do not expect we will gain in the long term. If any benefit, usually because of the luck factor and will not last long. In a matter of weeks to months, all the funds we usually sold out because of the lack of knowledge of analysis.
 

So it can be concluded that knowing the analysis of the price movement is an absolute known by the forex players.Broadly speaking, the analysis in forex trading is divided into two ways, namely Fundamental analysis and Technical analysis. Both rests on the assumption that different from each other. You can see the division in the diagram below:

fundamental AnalysisIf you've heard on television about rising global oil prices or the decision of the US Federal Reserve, the Fed to raise interest rates, it is called the fundamental news. The news greatly influence price movements in the market and a very big influence on the portfolio of an investor in the forex world. The analysis rests on fundamental economic news is called fundamental analysis.Fundamental analysis found the price moves for their news and government policy, and the market response to the news was released.In fact fundamental news such as this does move prices in the forex market. Any news that has been or will appear elicit a reaction from the market or traders that led to the price change. That is, the news may make changes to the price of the currency of the country concerned. This change in turn encourages the government as monetary authorities determine economic policy that appears next new fundamental news. And so on this cycle spinning.For a fundamental analyst, the speed, the accuracy of the news and the ability to forecast (forecasting) market reaction to the news released is a vital component that is an absolute must-have. Without the above factors, it is difficult for a fundamental analysts utilize existing news in order to make a profit.Take a simple example. For example, when we heard the news that the Fed has just raised interest rates by 25 basis points (equal to 0.25%) a few minutes ago (here is no longer a matter of hours, but minutes and even seconds! Left behind in a matter of hours means that the opportunity has passed! ), in general, the USD will strengthen and position Buy could do. Well, let's say you hear this news after two days later. This important news has been of no use anymore because the market has finished reacting even the possibility has entered a period of correction. Thus, the speed gain is very important news here. So did you hear the news source. No matter the news you hear is not valid throughout the market have the same perception with you. Its size is the market and not on the truth or falsity of the news.In the forex world, there are more than 50 kinds of fundamental news issued by each country and each story has a different effect on the price movement. Well, now the question that remains is, what are the 50 to the news? And what about the influence of any news that appeared on the movement of currency?Two of these questions will be answered in the article a more detailed fundamental analysis again. Not on this article because this article only discusses the introduction to the concept of analysis before you start the analysis of both technical and fundamental.Fundamental analysis is the basis is the information / news (news) derived from:

        Official agencies / Government
        Print / electronic
        IndividualAccording to the source, the Fundamental methods are subjective, depending on the degree of confidence Investor / Consultant to the news source.

Technical AnalysisIn contrast to fundamental analysis, technical analysis will look at the idea that the price movements can be predicted from the past. That is, with a series of price data in the past, we can predict the future movement. Something very unreasonable fundamental analysts.Method of Technical Analysis is a method for analyzing data from the past that the market price data, volume and open interest unntuk predict the future price trend on dating.Data-data is then presented in the form of charting (GRAPH).Basic calculations in technical analysis is a mathematical fact that most of them are statistical and science of chaos theory (pattern recognition). So it took the exact approach. Thus the results obtained can be a number that is exact and definite. Something that could not be afforded by fundamental analysis. Some technical analysts even says so: "Technical analysis is a cheat trading".If so, what is better than technical analysis, fundamental analysis? No. Remember, that the fundamental news that spawned fundamental analysis is a real market mover, not technical analysis. According Belajarforex, each has advantages and disadvantages of each. Technical analysis is known because of inexact and can be applied to any method of trading (trading day, weekly and even monthly to yearly). Known for his fundamental analysis can predict significant and sudden movements that are caused by the release of the news that matters. Here we extracted in tabular form:Weakness in Fundamental Analysis weakness in Technical AnalysisIt takes time to obtain the information. It requires a lot of data to support accurate prediction.Often it is subjective because it involves a lot of opinions. Highly dependent on the ability chartist. Each chartist have different methods and each is not necessarily suitable to one another.Fits better with the long term trading period.Difficult to apply in inefficient market.Back around technical analysis, as in the diagram shown by Belajarforex, technical analysis is divided into three major indicators, fibonacci sequence, and Elliot Wave Trading. Indicators are a series of formulas created by the science of statistics and used to predict the trend, the point of support, ressistance nor overbought and oversold. While the Fibonacci sequence and Elliot wave analysis based on pattern recognition based on the pattern of numbers and shapes of existing graphics.There are more than 50 types of indicators that you can learn in technical analysis, Elliot wave pattern 11 standard (not including derivative trading that developed individual and community research lab or other specified). While the Fibonacci sequence basing the calculation on the Fibonacci sequence that is widely used to calculate the movement of random objects that have a certain pattern (such as currency price movement).

For now Belajarforex has provided fundamental lessons from some of the indicators that you need to know. Expected in the times to come, articles about the Elliott wave and Fibonacci will be displayed. All this with the aim to equip you as an investor or prospective investor in the world of forex trading.