Generally, there are two streams of thinking big when formulating a trading strategy good money markets, securities, futures, and kurs. The second stream is called Fundamental Analysis and Technical Analysis. Fundamental Analysis based more on the economic factors, while concentrating on the movements Technical prices. We will try to review one by one:
Fundamental analysisFundamental analysis is an investigation of the economy and based on the assumption that the supply and demand for currency is a result of the economic processes that are typically seen in practice and the usual predictable. Fundamental analysis studies the relationship between the evolution of the currency with economic indicators, resulting in relationships that can be used to prove and make different predictions.
Concentrations of fundamental analysis includes economic power, social, and political, which controls the supply and demand. none of the trust that controls the order of fundamental analysis, but most of the fundamental analysis that looked at the macroeconomic indicators such as economic growth, interest rates, inflation, and unemployment.
Technical analysis
Motivation to believe technical analysis is all the technical data on the past and the present (the opening price, high, low, and closing) provide sufficient information to predict price fluctuations in the short term. The flow of broker also believes that the formation of patterns that can be identified and can be repeated with a high degree of frequency to ensure orders coming into the market. Microcosmic perspective is also based on a set of input data is somewhat limited, the opening price, high, low, and closing.
The short-term forex traders with small capital are still glued to the computer monitor for hours, which is basically just look at the information that the previous market price. Many of the techniques to collect and process the raw data that can be used and emphasized the importance to the controlled and the characteristics of the existing currency pairs. therefore, the process is what makes the work in the field of technical analysis is a potentially lucrative job.
Motivation to believe technical analysis is all the technical data on the past and the present (the opening price, high, low, and closing) provide sufficient information to predict price fluctuations in the short term. The flow of broker also believes that the formation of patterns that can be identified and can be repeated with a high degree of frequency to ensure orders coming into the market. Microcosmic perspective is also based on a set of input data is somewhat limited, the opening price, high, low, and closing.
The short-term forex traders with small capital are still glued to the computer monitor for hours, which is basically just look at the information that the previous market price. Many of the techniques to collect and process the raw data that can be used and emphasized the importance to the controlled and the characteristics of the existing currency pairs. therefore, the process is what makes the work in the field of technical analysis is a potentially lucrative job.
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