The analysis of the situation in the financial markets is carried out via text and graphical materials from specialized sources. Forex analytics implies studying the news, and economic and political factors to predict the movement of asset prices. It is an integral part of any trader, as opening and closing trades should be based on certain factors.
Testing of created rules is the most important and responsible stage, as a trader's future depends on the results of testing. Testing of trading system rules can be done manually or use a special program. The manual test takes more time than the computer one. Testing in the program allows faster selection of optimal parameters for indicators, but only those rules can be tested and programmed, which requires special knowledge. The manual test allows a better feeling of the market and the principle of working according to the rules of trading strategy.
The debate between technical and fundamental analysis supporters has been going on for many years, and so far, there are no winners or losers. Most traders prefer technical analysis because it is not that time-consuming and allows traders to monitor several currency instruments simultaneously. In contrast, fundamental analysis traders tend to specialize in one currency pair because they have a huge amount of data to study. Technical analysis is suited for forex trading since the rates in the foreign exchange market change according to the trends.
Each trader wants to know which way the price will go. However, to get the closest to an answer to this question, it is necessary not only to watch the chart on the trading platform but also constantly keep track of what is happening in the world. A key referendum, presidential comments, or release of negative statistics about the country can dramatically affect the national currency rate. You must have heard such phrases: "The dollar fell on the news... The euro jumped against the franc because of the news...".
To make money on forex, you need to be able to research the market. Understand where the price is going, and based on that, decide whether to enter the game or wait for more favorable conditions. That's what all traders do, not just on forex. A farmer who sells milk knows that if he goes to the market on a sunny Sunday afternoon, he will sell more, and at a better price than on a rainy Monday. He knows that good weather and a day off are two factors that will increase the demand for his product because there will be more people in the market.
The Moving Average is undoubtedly one of the most popular indicators. However, its wide popularity is not based on nothing. It is a simple but at the same time a powerful trend indicator. It clearly shows which way the price is trending, how clear the trend is, and when the reversal occurs. Today we will look at how to set up the Moving Average, how to use it, and what strategies can be implemented using this indicator.
The forex market is a rather complex and difficult to predict financial institution. The movement of currency pairs depends on a whole range of economic, political, and social factors. Their close interaction and complex influence on the market are often difficult to predict, especially the strength and direction of their impact on the price dynamics of a particular currency pair.
Investors and traders use various methods to predict the price movements of stocks, currencies, and other instruments. Technical analysis tools have become the most common. They use mathematical algorithms to calculate the patterns of changes in quotes and draw conclusions about further developments with a certain degree of probability. The other approach - the fundamental analysis - although complicated, is considered by many investors to be more effective. A beginner in the market should know at least its general provisions.