Concept Analysis on Forex Trading

As already mentioned in the previous article (Forex = Negative Rumors about gambling, Forex), forex play without knowing the analysis means we do gambling in it.And obviously, with gambling, it will culminate in a loss. Unfortunately such events not only experienced a few new players in the world of forex. There are who have experienced loss of tens to hundreds of millions just realized without analysis of forex trading is good then the same with gambling.

That is why www.sale-forex.com sought to emphasize the importance of analysis in forex trading. Without it, don't hope we will gain in the long run. If any benefits, usually because of factors of luck and won't last long. In a matter of weeks to months, all funds we usually run out due to the lack of knowledge of analysis.

So it can be concluded that know the analysis of price movement is absolutely known by the players.

Broadly speaking, the analysis in forex trading is divided into two ways, namely Fundamental analysis and technical analysis. Both are based on the assumption that different from each other.

Fundamental Analysis

If you've ever heard on television about the rise in world oil prices or the decision of the Central Bank of the United States, The Fed to raise interest, that's what tribes called the fundamental news. The news greatly affect the movement of prices on the market and its effects on the huge portfolio of an investor in the forex world. The analysis rests on a fundamental economic news is called fundamental analysis.

Fundamental analysis argues that prices move due to Government policy and news, as well as the response of the market against the news was issued.

In fact the fundamental news such as this is indeed the price moves in the forex market. Any news that has or will appear cause reactions from the market or traders who led to the occurrence of the price change. That is to say, the news that appear may make changes to the price of the currency of the country concerned. This change ultimately push government as monetary authorities determine economic policy so that it appears next to new fundamental news. So on this spin cycle.

For a fundamental analysts, the speed, the accuracy of the news and the ability to predict (forecasting) market reaction against news issued a vital component is an absolute must-have. In the absence of the above factors, it is difficult for a fundamental analysts utilize existing news in order to gain profit.

Take a simple example. For example when we heard the news that The Fed had just raised the interest of the tribe by 25 base points (equivalent to 0.25%) a few minutes ago (here's no longer a matter of hours, but minutes even seconds! Behind in a matter of hours means the opportunity has passed!), in General then the USD will strengthen and Buy position can be done. Well, let's say you hear this news after 2 days later.Important news has been of no use anymore because the market has finished even the possibility to react had already entered a period of correction. So, the speed gain is very important news here. So did the news source you hear. It does not matter the news that you hear is invalid throughout the market had the same perception with you. Its size is the market, not on the true harm in the news.

In the forex world there are more than 50 types of fundamental news issued by each State and their respective news have different effects against price movement. Well,now the question that remains is, what are the news was the 50th? And how the influence of every news story that appeared against currency movements?

The above two questions are answered in the article fundamental analysis is more detail again. Not on this article because this article only discusses the introduction of the concept of analysis before you start analysis either in technical or fundamental.

Basic Analysis Fundamental is information/news (news) which is derived from:

Official/Government Agencies

Print/electronic media

Individual

In accordance with the source, then the Fundamental methods are subjective,depending on the degree of Investor confidence/Consultant to the news source.

Technical Analysis

In contrast to fundamental analysis, technical analysis budged on the idea that price movements can be predicted from the past. That is, with a row of data for price movements in the past, we can predict its movement in the future. Something very implausible according to fundamental analysts.

Methods of Technical Analysis is a method to analyze past data from market price data, i.e. volume and open interest to predict the trend of the prices at the time will come. This data is then presented in the form of CHARTING (chart).

Basic calculations in math is actually a technical analysis that most of them are the statistics and the science of chaos theory (pattern recognition). So did indeed take the exact approach. Thus the results obtained can be exact and definite figures.Something that can not be provided by fundamental analysis. Some technical analyst seven says so: "Technical analysis is a cheat trading".

If so, is it better than the technical analysis fundamental analysis? It is not. Remember,that the fundamental news that gave rise to fundamental analysis is the real driving force of the market, rather than the technical analysis. According to saleforex.com, each has its advantages and drawbacks of each. Technical analysis is known because the exact factor and can be applied to any method of trading (day trading, weekly even monthly to yearly). Fundamental analysis can predict movements known for significant and sudden that indeed caused by the discharge of important news. Herewe sarikan in the form of a table:

Weaknesses in Fundamental analysis technical analysis on Weaknesses

It takes time to gain information. It requires a lot of data to support the accurate prediction. 

Is often subjective in nature because it involves a lot of people's opinion. Relies heavily on the ability of the chartist. Each has a different method of chartist and each match is not necessarily applied to each other.

More suitable to be applied to long term period of trading.

It is difficult to be applied to the market is not efficient.

Back about technical analysis, such as in the diagram are shown by saleforex.com, technical analysis is divided into 3 large i.e. indicators, fibonacci sequences, and Elliot Wave Trading. The indicator is a series of formulas that are created based on the science of statistics and used to predict trend, the point of support, as well as buy and saturated ressistance saturated selling. While the fibonacci sequence and Elliott wave analysis basing on a pattern recognition based on the pattern of numbers as well as the shape of the graph.

There are more than 50 types of indicators that you can learn in technical analysis,Elliot wave pattern 11 standards (excluding derivative developed individuals or trading research lab or other specific Community). While the fibonacci sequence basing his calculations on the fibonacci sequence that is widely used to calculate the random motions that have specific patterns (such as the price movement of the currency).

For the current saleforex.com have been providing fundamental lessons from some of the indicators that you need to know. Expected in the times to come, an article about Fibonacci or Elliot wave will be shown. All this with the aim to better equip you as an investor or potential investor in the world of forex trading.

Short Quiz

1. Mention (min 5) different types of indicators that are included in the technical analysis?

2. What do You know about the terms are as follows:

• Support Point.

• Ressistence Point.

• Psychological Issues in running Investment Forex Trading

Instructions:

1. The types of indicators of technical analysis:

• Simple Moving Average

• Exponential Moving Average

• Weighted Moving Average

• Bolinger Bands

• MACD

2. The following is an explanation

* The point of Support: the lower limit of a price movement.

* Point of Resistant: upper limit of movement.

* Disease in running Investment Forex Trading:

a. Greed: Greed: the pursuit of profit (Profit) is great is excessive (Explosive)

b. Revenge: revenge: because have experienced Lost (a loss), then to alternative, as the opening position back without a clear return calculation.

c. rely on emotions/feelings. For example: a feeling of happy, good day, forecast that is not theoretical, etc.

d. do not have a clear Trading system.