FOREX Trading
• What Is
FOREX?
• FOREX
Or Futures?
• FOREX
Or Stocks?
•
FOREX Trading for
Beginners
• FOREX
Terms To Know
•
Preparing for FOREX
Trading
• Is
FOREX Trading Risky?
•
The Philosophy of FOREX
Trading
•
FOREX and Fundamental
Analysis
•
Tools for FOREX Trading
•
Trading Strategies for
FOREX
• Trading Systems
for FOREX
•
Reading and Understanding
FOREX Quotes
•
FOREX Profits and Losses
•
FOREX Technical Analysis
Part 1
•
FOREX Technical Analysis
Part 2
•
FOREX Trading Brokers
• The
FOREX Margin
•
What Are Currency Options?
•
What Are FOREX Signals?
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Online FOREX Trading
FOREX Technical Analysis - Part 1
There are two different analysis that pertain to the FOREX market: Technical
analysis and Fundamental analysis. While Technical analysis predicts market
movements based on historical economic data, Fundamental analysis predicts
market movements by analyzing current ecomonic and political events.
Technical analysis comes from three assumptions: Price movements are a result
of a combination of all market forces, the prices of currencies follow trends,
and price movement can be predicted from historical trends. Let's take a
look at each one:
Price movements are a result of a combination of all market forces - economic
conditions, political events, seasons, supply and demand, and even weather
conditions have an affect on currency prices. In technical analysis, however,
the cause of market movement is not what matters. Instead, it is the market
movement that matters.
The prices of currencies follow trends - There are market patterns that can
be seen, and those patterns have consequences that can be predicted based
on the patterns.
The price movement can be predicted from historical trends - For more than
100 years, FOREX data has been collected and analyzed. Over this period of
time, certain patterns have emerged, and these patterns have a profound effect
on the way that we react to certain conditions, and on psychology in general.
FOREX traders use both fundamental and technical analysis on a daily basis.
Typically, they use technical analysis, and back that up with the fundamental
analysis, just to be sure. Unlike fundamental analysis, which is based on
one country at a time, technical analysis can be applied to multiple currencies
at one time. Unless you know and understand the political and economical
conditions in France, fundamental analysis for that country won't be much
good to you - but technical data, which is based on history, is useful.
Many beginners don't understand the importance of technical analysis in the
FOREX market. But if you want to be successful in FOREX trading, you must
have a strategy. That strategy is formulated with the use of technical analysis,
which is used to predict movement in the market.
Your FOREX broker should provide you with charts and charting software for
technical analysis. You may be charged a monthly fee for the use of the charts
and software, but in the long-run, that expense is not only worth paying,
it is vital to your trading strategy. Charts can be manipulated in various
ways, with zooms, overlays, and detailed information. Charts should, of course,
be in real-time.
Before you start FOREX trading, it is a good idea to open a demo account.
Many brokers offer these types of accounts, that will allow you to use all
of the tools. Learn to use those tools and how to analyze data collected
with the use of those tools before you start trading!
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