There are many types of analysis in Forex. There is technical analysis, fundamental analysis, and there is also your own analysis, which depends on your personal character, and your logical analysis of what is happening in the market.
Of course, developing this level of analysis will not happen, unless you learn with our Forex courses, which will help you make the right decisions at the right time.
Let us explain further - when you're trading on a Dollar/Euro pair, you will face a lot on volatile situations, that will require an instant decision to be made. You may see that the deal isn't panning out as you hoped, so you will therefore, have two choices - either to drop out from the deal, or keep the deal open. You may lose profit, or gain profit - it all depends on your analysis.
The main analysis is specialized analysis of all the financial data, news, and the financial situations in the countries with global financial impact. This is known as the main analysis, because it is the foundation of your trades. You should, therefore, always do a study on all the financial data presently available.
Also, there is another kind of data that is closely linked to each other. Unemployment rate, for example, is linked to employment data. When there is a low unemployment rate, this means that there is a rise in jobs. You should, therefore, pay attention to all the news and economic developments, so that you know everything that goes on around you - from the growth of economies, and what is expected from the decision makers of monetary policy, so you will be able to correctly assess whether currency will be rising or falling.
Technical analysis has many tools, but let us first define the term. Technical analysis is the method that is used to predict a future movement. This is done through tools such as indicators, subsidies, and resistors, in addition to information, such as the size of the previous trading and prices.
Technical analysis also has benefits. For instance, the information required is significantly less than that of fundamental analysis. Also, when you select the price, levels will be reflected, and so there won’t be any difficulty, because the price movement is in front of you, and you can determine the subsidies, resistors and rebounds.
This type of analysis also has its share of disadvantages, such as the trader turning on himself, meaning that it's possible that the trader will use tools similar to each other to give him the same result, as well as the same concept, but this is wrong. He must use different tools in order to determine if a particular direction will continue in its track, or not. There are also the subsidies and resistors which can lead to another result, being the price colliding with the level of support, and to resist and recover from it. There are also many indicators, for example, like MACD and Moving Average, which are used by the trader to achieve a correct sense of direction.
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