FOREX, ANALYSIS OF MARKET
forex, fx, currency, economy, finance,credits, loans, investments
To interpret correctly the situation of market and estimating are the actions and events that cause it, it is necessary to learn to read and analyse the information received from external sources. To predict the fluctuations of the currency in the future have of two modes of analysis: fundamental and technical.
Let’s see which are the keys of each of them.
This type of analysis is based on the political and economic news and its influence on the types of changes. It is a set of actions that can allow to estimate what will be the behavior of the Forex market prices. THE basis of these data is essential for countries whose operations affect currencies in such operations. It is difficult to have a comprehensive situation analysis since there are several factors that can change the situation. In addition the consequences of those developments may also differ between them. The secret of the technical analysis depends on correctly understanding the impact of those events on the currency of reference. Among the indicators of fundamental analysis are:
- the rates of interest of the banks central
- the economic policy of the State
- the situation political
- the characteristics of economic growth
- the balance of trade indicators
- the rates of inflation
- solvency of the State
- sentiment of the investors
- the competitiveness of the product
- the confidence of the consumer
- State of the market real estate
- State of the market labor
- other indicators
The analysis fundamental is published in form of indices that can be revised and re-evaluated. When is estimate them data, the comparison of the data previous and current generates a process dynamic where is analyzed data of several years back. However not are data enough by what is necessary have them skills analytical that us allow associating the information with their causes and their consequences. These skills analytical can improve with a training global in the same, that allow to the inverter analyze the situation and take decisions in little time.
The analysis fundamental and technical are parts fundamental of the work daily from the inverter.
He analysis fundamental as not is rather than the analysis of the news economic global, and its study to know exactly what is what should do is. Them events world in the economy alter the position of the currency of the market in Forex. For example the situation of tension among them banks of a country can make fall its currency. The analysis fundamental requires of time and of patience and serves as analysis for periods long (years, semesters, quarters). This is the cause by which the day-traders and investors to short not you give importance. Even so is important have certain knowledge and notions of macroeconomics, as are powerful tools that us allow to know that will happen tomorrow.
This method is based on the analysis of the behavior present and future of the currency using graphics e indicators technical. This analysis is essential to the trader and has spent many years in use. This analysis allows to determine the future movement of the price of a value based on historical data. The advantage of this type of analysis is that it can be used in time short and media, from deadlines intraday to deadlines for several weeks. Technical analysis is based on three core pillars:
The market considers it all. Any event has influence on the market and is reflected in the price depending on the attitude of the participants of the same.
The price moves in trend. The price changes will always follow a trend. This trend can be ascending upward, downward or bearish or flat or side. The task of the inverter is know in which trend we are and follow the trend when it changes.
The market has good memory (history repeats itself). Past patterns are reproduced in the future. The laws governing the market remain the same.