How to analyze the market? You have learned about the basics of the forex market before, now is the time to learn how to analyze the market. The next lesson will teach you different methods to analyze the market, because this is one of the most important things that you should know when trading. There are three methods to analyze the forex market: technical analysis, fundamental analysis and sentiment analysis. technical analysis is a technique to read graphs of past price movements to predict the future. This method is based on a theory that markets tend to repeat what it did in the past. Trends and patterns in the past graph is used to determine what will happen in the future. Technical analysis can be applied to any currency pairs as well as other products such as trading shares, indices, precious metals, etc .. In addition, because there are so logical and technical analysis methods allowing conversion transaction principles of computer programs (also known as robots) to be able to automatically trade when there is a certain logical conditions of the price chart is satisfied. Recently, this type of automated trading is becoming a preferred choice for many traders. Today, more and more traders to apply technical analysis into their trading strategies. More and more traders analyze the market and act in a similar direction as the market tends to move in that direction, as a corollary. For that reason, you should not ignore technical analysis or risk being left behind. The method uses fundamental analysis and news reports to assess the economic health of the coins , thereby determining the trend of the market potential in the future. The key element of the analysis method is basically interest rates, GDP, inflation, unemployment, etc .. These factors impact on each of the currencies of each country, representing secondary economy countries. When you buy or sell the currency of a country is like you are buying or selling shares of that country in world economy. In other words, betting on that economy. If the economy of a country grows, their currencies also strengthened, and vice versa. As you learned in the previous article, two important members in the forex market is that governments and central banks, as well as the main source of information of basic analytical methods. Therefore, what you should do is read the news, watch TV channels on finance, sticking reports and economic news. Fundamental analysis is the traditional method used in the stock market. While technical analysis more effectively with short-term strategies, the fundamental analysis proved more advantageous to the War long-term strategy. This is the typical method of serious investors. Fundamental analysis requires you to have an overview of the global economy. But do not worry, you will be instructed to focus on what and how to understand them in a different section.
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