subject: Forex Market Analysis [print this page] As with any event in global Forex market, developments in the currency market mark themselves through cause and effect, which are both analyzed through the two branches of Forex market analysis: fundamental analysis and technical analysis.
The only problem people often have is that while studying Forex analysis is failing to understand that price action is the result of series of events, which are independent of the price action itself.
Fundamental analysis is the study of financial and political factors, which cause price flows. It attempts to discover and foresee the causes of Forex trends and while doing so, it uses numerous indicators to present a full picture of global finance.
In comparison with fundamental analysis, the efficiency of technical analysis is a great, when market participants are the most sensitive. In general, the market actions are stable with little new money entries or exist.
In Forex market the most essential question is to understand the causes of price movements in a particular direction. Really, this is the most important question that one must have answered in order to make a profit in currency trading.
Effective trading trend requires you to regularly review your charts for the signals regarding the trends of all three degrees. This task will get success if you have a fixed number of technical analysis tools plotted on the 15-minute charts for the minor trends, on hourly charts-for the intermediate trends and on the daily chart-for the major trends. The instruments that you plot on these charts will be the tools, which you have specified in your Forex trading system.
Many Forex trading courses provide you with detailed guidelines on how to set up your charts to follow three degrees of a trend and how to combine the signals from each trend type to maximize your profits.
Daily geopolitical and financial events certainly create great, long-lasting undercurrents in the Forex Market. In fact, there are such issues as daily trade flows, currency options, cross-border merges and other issues that distort the global picture of such people, who are not familiar with currency trading and Forex market analysis tools.
Generally, qualified Forex brokers provide a reliable trading platform, round-the-clock customer support during Forex trading hours, access to Forex news and commentary, technical analysis tools and charts etc. Brokers, who offer less than the mentioned Forex services should not be considered in the selection of a Forex broker, as currently, traders have a good chance to choose retails brokers online.
