Thursday, September 13, 2018

Technical Analysis and the Most Profit Forex Trading Fundamentals

1. Fundamental analysis

Analysis of forex fundamentals. If you have heard on TV about the increase in world oil prices or the provisions of the Central Bank of America, the Fed to increase interest rates, that is what is meant by fundamental news.

The news is so affecting the price movement in the market and so much influence on one's portfolio of investors in the world of forex. Analysis based on the fundamental economic news was given the name of fundamental analysis.

Fundamental analysis has the opinion that prices move because there are news and government policies, and market responses to the news are released.

Actually fundamental news like the following is indeed moving prices in the forex market. Every news that has or will also come out causes a reaction from the market or some traders that lead to price changes.

The goal is that the news that comes out can change at the price of the relevant country currency. This change further encouraged the government to be the holder of the monetary authority to ensure economic policy to come out of the new fundamental news. The next cycle is circling.

For a fundamental analyst, speed, accuracy of news and the power of forecasting the market reaction to the news released is a vital component that absolutely must be possessed. There is no aspect above, it is difficult for a fundamental analyst to use the news that there are benefits to gain profit.

Take one simple example. For example, when we hear the news that the Fed just added its interest rate by 25 basis points (same as 0, 25%) a few minutes ago (here the count is not once more hours, but even minutes, even minutes! already over!), generally a USD currency will also strengthen and where Buy can be done.

 Well, let's say you hear this news after 2 days ago. This news has no function once again because the market is over reacting even the opportunity has entered the correction period. So, the speed of getting news is necessary here.

Likewise the news source that you hear. It doesn't matter that the news you hear is invalid as long as the market has the same perception as you. The size of the market, is not the true error of the news.

In the world of forex there are more than 50 types of fundamental news released by each country and every news has a different impact on the price movement. Well, now the remaining questions are, what are the 50 news? And how does the impact of each news come out on the currency movement?

The two questions above will also be answered in a more detailed fundamental analysis article. Not in this article because indeed this article only reviews the introduction to the previous analysis plan. You begin the analysis either technically or fundamentally.

Basic analysis with Fundamental, namely info / news (news) that comes from:
Official / Government Agencies
Make / electronic media

According to the source, the Fundamental way is subjective, depending on the degree of confidence of the Investor / Consultant in the news source.

2. Technical Analysis

Forex technical analysis is the most profit. In contrast to fundamental analysis, technical analysis goes to the idea that price movements can be estimated from yesterday. Means, with a series of data on price movements in the future, we can estimate their movements in the future. A thing that makes no sense according to some fundamental analysts.

The Technical Analysis method is a way to analyze the past data from the market, namely the price, volume and open interest data to estimate the price trend at the time to come. The data is then presented in the form of CHARTING (GRAPHICS).

Basic calculations in actual technical analysis, namely mathematics, some of which are one of them, namely statistics and chaos knowledge theory (pattern recognition). So indeed take an exact approach.

 With this, the results can also be in the form of exact numbers and of course. One thing that cannot be obtained from fundamental analysis. Some technical analysts even mentioned this: "Technical analysis is a trading cheat."

If so, is technical analysis better than fundamental analysis? No. Remember, if fundamental news that gives rise to fundamental analysis, namely the real driver of the market, is not technical analysis. According to BelajarForex, each has its own advantages and disadvantages.

Technical analysis is known because of the exact aspects and can be applied to each method of trading (day trading, weekly and even monthly to yearly). Fundamental analysis is known because it can estimate important and sudden movements that are really due to release of news that is necessary.

 We form it in the form of a table: Lack of Fundamental Analysis Lack of Technical Analysis It is necessary to get info. Requires a lot of data to support accurate estimates. Often subjective because it involves a lot of people's opinions. It depends on chartist strength. Each chartist has a different way and it is not necessarily appropriate to apply both. More appropriately applied in long term trading period. It is difficult to apply to ineffective markets.

Back around technical analysis, as in the diagram shown by BelajarForex, technical analysis is divided into 3 big is the sign, Fibonacci sequence, and Elliot Wave Trading.

Important, read also: Signs are a series of formulas created based on statistical knowledge and used to estimate trends, support points, resistance or tired buying and selling. Medium Fibonacci sequences and Elliot wave based their analysis on pattern recognition based on number lines or existing graphic shapes.

There are more than 50 types of marks that you can explore in technical analysis, 11 Elliot wave standard grooves (not including derivatives developed individually or trading research lab or other specific communes).

Fibonacci sequences base their calculations on the Fibonacci series which are widely used to calculate the motion of random objects that have specific grooves (such as currency price movements).

 For now LearningForex has provided a fundamental lesson from some of the you need to recognize. Desired in the future, articles about Elliot waves or Fibonacci will also be shown. All of them with a view to equipping you as an investor or potential investor in the world of forex trading.


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