In general, the analysis in forex trading is divided into two ways, namely Fundamental analysis and Technical analysis. The aim is to identify what factors that influence the price movement, psychology, statistics, prices, economic news, security or politics, all this contributed to the price movements in the Forex.
As mentioned in previous articles (Forex = Gambling, Negative rumors about Forex), playing the forex without knowing that we do an analysis of gambling in it. And obviously, the gambling will lead to losses. Unfortunately events like this are not only experienced a few new players in the world of forex. Some have experienced loss tens to hundreds of dollars, only to realize without a good analysis of the forex trading equals gambling.
That's why we try to emphasize the importance of analysis in forex trading. Without it, do not expect we will benefit in the long run. If any benefit, usually because of luck and will not last long. In a matter of weeks to months, all our funds are usually sold out because of lack of knowledge analysis.
So it can be concluded that knowing the analysis of price movements is absolutely known by the forex players.
Fundamental Analysis
If you've ever heard on television about the increase in world oil prices or the U.S. Federal Reserve's decision, the Fed to raise interest rates, that is what is called the fundamental news. The news greatly affect the price movement on a very large market and its impact on an investor's portfolio in the world of forex. Analysis rely on news of economic fundamentals is called fundamental analysis.
Fundamental analysis argues that the price moves because of the news and government policy, and the market response to the news released.
In fact the fundamental news like this is the price moves in the forex market. Any news that has been or that will emerge from the market reaction or traders that led to the change in price. That is, news that came to make changes to the price of the currency the country concerned. These changes eventually prompted the government as the monetary authorities to determine the economic policies that appear next new fundamental news. So on this cycle spinning.
For a fundamental analyst, speed, accuracy and ability to predict the news (forecasting) market reaction to the news released is a vital component of the absolute must-have. Without the above factors, it is difficult for a fundamental analyst utilizing the existing news in order to gain profit.
Take a simple example. For example when we heard the news that the Fed had just raised interest rates by 25 basis points (equal to 0.25%) a few minutes ago (here is no longer a matter of hours, but minutes and even seconds! Disadvantaged in a matter of hours means that the opportunity has passed! ), in general the currency and the USD will strengthen the position of Buy can do. Well, let's say you heard about this after 2 days later. This important news was not any good anymore because the market has finished reacting even the possibility has entered a period of correction. Thus, the speed gain is very important news here. So is the source of the news you hear. No matter the news you hear is not valid throughout the market have the same perception of you. Market size is not really his fault on the news.
In the forex world there are more than 50 types of fundamental news issued by each country and each story has a different effect on the price movement. Well, now the remaining question is, what are the 50 news? And how the influence of each story that appears on currency movements?
Two of the above questions will be answered in this article that fundamental analysis is more detailed again. Not in this article because this article discusses only the introduction to the concept before you start analyzing both technical analysis and fundamental.
Fundamental analysis is the basis is the information / news (news) that comes from:
Agency Official / Government
Print media / electronic
Individual
In accordance with the source, the fundamental method is subjective, depending on the degree of confidence Investor / Consultant to the news source.
Technical Analysis
In contrast to fundamental analysis, technical analysis went on the notion that price movements can be predicted from the past. That is, with a row of data in the past price movements, we can predict their movements will be the future. Something that was inconceivable according to fundamental analysts.
Technical Analysis Method is a method to analyze the data of the past from the market price data, volume and open interest unntuk predict the price trend will dating.Data-time data and charts presented in the form (GRAPH).
Basic calculations in technical analysis is a mathematical fact that most of them are statistics and the science of chaos theory (pattern recognition). So it took approach exactly. Thus the results obtained can be a number of exact and definite. Something that can not be provided by fundamental analysis. Some technical analysts even say that: "Technical analysis is a cheat trading".
If so, whether technical analysis is better than fundamental analysis? No. Remember, that the fundamental story that gave birth to fundamental analysis is the real mover of the market, rather than technical analysis. According to BelajarForex, each has its pros and cons of each. Technical analysis is known as exact factors and can be applied to any method of trading (day trading, weekly and even monthly to yearly). Known for his fundamental analysis can predict a significant and sudden movements that are caused by the discharge of important news. Here we sarikan in tabular form:
Weakness in the Fundamental Analysis Technical Analysis Weakness
It takes time to obtain information. Require a lot of data to support accurate prediction.
Often are subjective because it involves a lot of people's opinions. Highly dependent on the ability chartist. Chartist Each has different methods and each is not necessarily suitable to be applied to one another.
More suitable to be applied to long term trading period.
Difficult to apply in an inefficient market.
Back around the technical analysis, as shown in the diagram by BelajarForex, technical analysis is divided into the 3 major indicators, Fibonacci sequences, and the Elliott Wave Trading. Indicators are a series of formulas created by science and statistics used to predict trends, point support, as well as saturated ressistance buying and selling saturated. While Fibonacci sequence and Elliott wave analysis based on pattern recognition based on the pattern of numbers or a graph form.
There are more than 50 types of indicators you can learn in technical analysis, Elliot wave patterns of 11 standards (not including the developed derivative trading individuals and research labs or other specific communities). Fibonacci sequence while basing its calculations on the Fibonacci series which are widely used to calculate the movement of random objects that have a certain pattern (such as currency price movements).
As mentioned in previous articles (Forex = Gambling, Negative rumors about Forex), playing the forex without knowing that we do an analysis of gambling in it. And obviously, the gambling will lead to losses. Unfortunately events like this are not only experienced a few new players in the world of forex. Some have experienced loss tens to hundreds of dollars, only to realize without a good analysis of the forex trading equals gambling.
That's why we try to emphasize the importance of analysis in forex trading. Without it, do not expect we will benefit in the long run. If any benefit, usually because of luck and will not last long. In a matter of weeks to months, all our funds are usually sold out because of lack of knowledge analysis.
So it can be concluded that knowing the analysis of price movements is absolutely known by the forex players.
Fundamental Analysis
If you've ever heard on television about the increase in world oil prices or the U.S. Federal Reserve's decision, the Fed to raise interest rates, that is what is called the fundamental news. The news greatly affect the price movement on a very large market and its impact on an investor's portfolio in the world of forex. Analysis rely on news of economic fundamentals is called fundamental analysis.
Fundamental analysis argues that the price moves because of the news and government policy, and the market response to the news released.
In fact the fundamental news like this is the price moves in the forex market. Any news that has been or that will emerge from the market reaction or traders that led to the change in price. That is, news that came to make changes to the price of the currency the country concerned. These changes eventually prompted the government as the monetary authorities to determine the economic policies that appear next new fundamental news. So on this cycle spinning.
For a fundamental analyst, speed, accuracy and ability to predict the news (forecasting) market reaction to the news released is a vital component of the absolute must-have. Without the above factors, it is difficult for a fundamental analyst utilizing the existing news in order to gain profit.
Take a simple example. For example when we heard the news that the Fed had just raised interest rates by 25 basis points (equal to 0.25%) a few minutes ago (here is no longer a matter of hours, but minutes and even seconds! Disadvantaged in a matter of hours means that the opportunity has passed! ), in general the currency and the USD will strengthen the position of Buy can do. Well, let's say you heard about this after 2 days later. This important news was not any good anymore because the market has finished reacting even the possibility has entered a period of correction. Thus, the speed gain is very important news here. So is the source of the news you hear. No matter the news you hear is not valid throughout the market have the same perception of you. Market size is not really his fault on the news.
In the forex world there are more than 50 types of fundamental news issued by each country and each story has a different effect on the price movement. Well, now the remaining question is, what are the 50 news? And how the influence of each story that appears on currency movements?
Two of the above questions will be answered in this article that fundamental analysis is more detailed again. Not in this article because this article discusses only the introduction to the concept before you start analyzing both technical analysis and fundamental.
Fundamental analysis is the basis is the information / news (news) that comes from:
Agency Official / Government
Print media / electronic
Individual
In accordance with the source, the fundamental method is subjective, depending on the degree of confidence Investor / Consultant to the news source.
Technical Analysis
In contrast to fundamental analysis, technical analysis went on the notion that price movements can be predicted from the past. That is, with a row of data in the past price movements, we can predict their movements will be the future. Something that was inconceivable according to fundamental analysts.
Technical Analysis Method is a method to analyze the data of the past from the market price data, volume and open interest unntuk predict the price trend will dating.Data-time data and charts presented in the form (GRAPH).
Basic calculations in technical analysis is a mathematical fact that most of them are statistics and the science of chaos theory (pattern recognition). So it took approach exactly. Thus the results obtained can be a number of exact and definite. Something that can not be provided by fundamental analysis. Some technical analysts even say that: "Technical analysis is a cheat trading".
If so, whether technical analysis is better than fundamental analysis? No. Remember, that the fundamental story that gave birth to fundamental analysis is the real mover of the market, rather than technical analysis. According to BelajarForex, each has its pros and cons of each. Technical analysis is known as exact factors and can be applied to any method of trading (day trading, weekly and even monthly to yearly). Known for his fundamental analysis can predict a significant and sudden movements that are caused by the discharge of important news. Here we sarikan in tabular form:
Weakness in the Fundamental Analysis Technical Analysis Weakness
It takes time to obtain information. Require a lot of data to support accurate prediction.
Often are subjective because it involves a lot of people's opinions. Highly dependent on the ability chartist. Chartist Each has different methods and each is not necessarily suitable to be applied to one another.
More suitable to be applied to long term trading period.
Difficult to apply in an inefficient market.
Back around the technical analysis, as shown in the diagram by BelajarForex, technical analysis is divided into the 3 major indicators, Fibonacci sequences, and the Elliott Wave Trading. Indicators are a series of formulas created by science and statistics used to predict trends, point support, as well as saturated ressistance buying and selling saturated. While Fibonacci sequence and Elliott wave analysis based on pattern recognition based on the pattern of numbers or a graph form.
There are more than 50 types of indicators you can learn in technical analysis, Elliot wave patterns of 11 standards (not including the developed derivative trading individuals and research labs or other specific communities). Fibonacci sequence while basing its calculations on the Fibonacci series which are widely used to calculate the movement of random objects that have a certain pattern (such as currency price movements).
