Learning Analysis Forex - Forex trading is basically the art, in this case is the art of analysis. How can it be? Obviously very able, each person / individual can produce art / trading style which is different. In a sense even if you sit on the same person, not necessarily the result is the same for each of his followers. And not necessarily the same even with his own teacher.
Capabilities and expertise (skills) analysis, will be one of the main factors of success or failure of a person in the world of forex trading. Forex analysis which will either be able to always be consistent / repeated profit, and be able to survive in the long-term if possible for ever.
Well let's start learning the basics of analysis in forex trading. Broadly speaking there are two basic types of approaches / analysis which is commonly used.
A. Fundamental analysis.
2. Technical analysis / technical.
Which is best? Do not get stuck for the favored one. And a waste of time to search for article comparison which one is better. Although the above was written in the No. 1 fundamental analysis, this does not make it better than technical. So let's cover a relaxed one by one, and then put back together for the benefit of the magnitude of the two.
Fundamental analysis
Fundamental analysis is a way to see the market through economic, social power, and politics that affect the supply and permintaan.Dengan other words, you look fine day economic conditions, or conditions which sucks. The idea behind this fundamental analysis is that if a country's economy well, then their currency will also be good. And which resulted in increased confidence of other nations against those currencies.
For example, the U.S. dollar continues to rise as the U.S. economy stronger / better. The consequences could be even higher interest rates to curb inflation, the effect is the value of the dollar will also continue to strengthen.
Above is an example illustration of how the fundamentals can affect currency values. In the articles on this site you can find any kind of news / factors that are included in the fundamental and the factor / news anywhere of the most influential. For the moment we take the base line, that fundamental analysis is a way to analyze the market through economic conditions of the country concerned.
Technical Analysis
Technical analysis is the study of price movements in terms of mathematical analysis. From here we can imagine there will be graphs or calculations / mathematical formulas in it. With historical data serja price movements now exist, which can provide analysis of the projection in which the price will go up, down, or turn around. Or it could be called a 'trend' is sought in technical analysis. By identifying trends or patterns correctly, will be able to help you find the best trading opportunities.
People say that the technical analysis TREND is your friend. If you should be able to recognize the trend your friend, then he would give money (profit) to you.
Up here you so discouraged? Well I'm not good at math, I would be weary to use technical analysis, no giddy imagine I must look at the numbers and formulas ..
Take it easy .. :) Be patient to follow and read our article. Which is not as complicated as imagined .. And believe me it's not worth the loss of which would be your responsibility (in later trading) compared with the well known technical analysis.
Linkages Between Fundamental and Technical Analysis
To become a master forex, you need to know how to effectively use both types of analysis. Let us look at an illustration that shows how to focus on only one type of analysis could turn into a disaster.
* Let's say that suatau time you see your chart (technical) and you find an opportunity that is very good trading opportunities. With a fiery passion you once had a dream that money will fall like rain from the sky. You think, wow I've never seen an opportunity like this sweet (I love my chart).
* Then you immediately with full confidence to continue to enter orders to broker transactions. With a big smile, you impatiently waiting for the advantage which seems to have been in plain sight.
* After a few moments, and the order has been opened, you know .... price movements into and move in the direction opposite the other, you see a loss of 40 pips. Apparently if you know, recently there is a reduced rate of interest on which currency you hold, so the value of the currency is weak, and now everyone in the market is moving to remove the currency (against all your graphic analysis).
Maybe you think that the illustration above is too over or dramatized. Yes. possible, but at least you can get the purpose of illustration. Moreover such as we now return to your question. 'Can you guarantee if this can not happen?'
Back to the illustration above, so now you feel like a dream in vain, your dream is damaged by lightning in broad daylight, even worse you feel that the graphs / analysis of your field who are seen as trash only (buang2 time and the mind / brain). But if you be wise not to ignore the fundamental factors, the above may not have occurred.
Conclusion
Forex is like a big ball of energy moving and flowing, the ball there is a balance between fundamental and technical factors that play a role in determining where he will be moving, which direction the market. No reply can be the dominant element of control to 100%, be it fundamental or technical, even the forex market was not separated from the natural law.
Remember how mom and dad where going to the Children. Mother gave Dad gave sensitivity is rationality. The best results for children remains the synergy of both.
In learning forex analysis, the same applies when deciding which type of analysis to be used. Do not rely on just one. Instead, you must learn to balance the use of each of them, because only that which will make you really can get the most from your trading.
Capabilities and expertise (skills) analysis, will be one of the main factors of success or failure of a person in the world of forex trading. Forex analysis which will either be able to always be consistent / repeated profit, and be able to survive in the long-term if possible for ever.
Well let's start learning the basics of analysis in forex trading. Broadly speaking there are two basic types of approaches / analysis which is commonly used.
A. Fundamental analysis.
2. Technical analysis / technical.
Which is best? Do not get stuck for the favored one. And a waste of time to search for article comparison which one is better. Although the above was written in the No. 1 fundamental analysis, this does not make it better than technical. So let's cover a relaxed one by one, and then put back together for the benefit of the magnitude of the two.
Fundamental analysis
Fundamental analysis is a way to see the market through economic, social power, and politics that affect the supply and permintaan.Dengan other words, you look fine day economic conditions, or conditions which sucks. The idea behind this fundamental analysis is that if a country's economy well, then their currency will also be good. And which resulted in increased confidence of other nations against those currencies.
For example, the U.S. dollar continues to rise as the U.S. economy stronger / better. The consequences could be even higher interest rates to curb inflation, the effect is the value of the dollar will also continue to strengthen.
Above is an example illustration of how the fundamentals can affect currency values. In the articles on this site you can find any kind of news / factors that are included in the fundamental and the factor / news anywhere of the most influential. For the moment we take the base line, that fundamental analysis is a way to analyze the market through economic conditions of the country concerned.
Technical Analysis
Technical analysis is the study of price movements in terms of mathematical analysis. From here we can imagine there will be graphs or calculations / mathematical formulas in it. With historical data serja price movements now exist, which can provide analysis of the projection in which the price will go up, down, or turn around. Or it could be called a 'trend' is sought in technical analysis. By identifying trends or patterns correctly, will be able to help you find the best trading opportunities.
People say that the technical analysis TREND is your friend. If you should be able to recognize the trend your friend, then he would give money (profit) to you.
Up here you so discouraged? Well I'm not good at math, I would be weary to use technical analysis, no giddy imagine I must look at the numbers and formulas ..
Take it easy .. :) Be patient to follow and read our article. Which is not as complicated as imagined .. And believe me it's not worth the loss of which would be your responsibility (in later trading) compared with the well known technical analysis.
Linkages Between Fundamental and Technical Analysis
To become a master forex, you need to know how to effectively use both types of analysis. Let us look at an illustration that shows how to focus on only one type of analysis could turn into a disaster.
* Let's say that suatau time you see your chart (technical) and you find an opportunity that is very good trading opportunities. With a fiery passion you once had a dream that money will fall like rain from the sky. You think, wow I've never seen an opportunity like this sweet (I love my chart).
* Then you immediately with full confidence to continue to enter orders to broker transactions. With a big smile, you impatiently waiting for the advantage which seems to have been in plain sight.
* After a few moments, and the order has been opened, you know .... price movements into and move in the direction opposite the other, you see a loss of 40 pips. Apparently if you know, recently there is a reduced rate of interest on which currency you hold, so the value of the currency is weak, and now everyone in the market is moving to remove the currency (against all your graphic analysis).
Maybe you think that the illustration above is too over or dramatized. Yes. possible, but at least you can get the purpose of illustration. Moreover such as we now return to your question. 'Can you guarantee if this can not happen?'
Back to the illustration above, so now you feel like a dream in vain, your dream is damaged by lightning in broad daylight, even worse you feel that the graphs / analysis of your field who are seen as trash only (buang2 time and the mind / brain). But if you be wise not to ignore the fundamental factors, the above may not have occurred.
Conclusion
Forex is like a big ball of energy moving and flowing, the ball there is a balance between fundamental and technical factors that play a role in determining where he will be moving, which direction the market. No reply can be the dominant element of control to 100%, be it fundamental or technical, even the forex market was not separated from the natural law.
Remember how mom and dad where going to the Children. Mother gave Dad gave sensitivity is rationality. The best results for children remains the synergy of both.
In learning forex analysis, the same applies when deciding which type of analysis to be used. Do not rely on just one. Instead, you must learn to balance the use of each of them, because only that which will make you really can get the most from your trading.
