Before we conduct transactions both buying and selling that we need to Arm yourself with knowledge about analyzing the price movements. With the aim of our analysis for the right to conduct transactions and of course to profit and avoid losses.
In general, the analysis in foreign exchange trading, there are two categories: technical analysis and fundamental analysis.
In general, the analysis in foreign exchange trading, there are two categories: technical analysis and fundamental analysis.
Technical Analysis
Is one method of approach which evaluates whether the price movement of a stock exchange, forex, futures, indices and several other financial instruments. technical analysis can also be interpreted as a major study about the price, including the amount and the open position. The technicians will conduct fundamental research on the pattern of commodity price movements are repetitive and predictable. The conclusion of technical analysis is an analysis of the pattern of price movements in the past in order to predict price movements in the future. Technical analysis is often called by chartist as the analysis conducted a study using a graph (chart), where they hope to find a pattern of price movements so that they can exploit for profit.
In technical analysis, to predict forex price moves the same as predicting the movements of commodity prices as analysts see only factor graph and volume of transactions only
Basics Of Technical Analysis
1. Market Price
1. Market Price
That is all the events that can lead to turmoil on the stock exchange as a whole or the price of the currency of a country such as economic factors, political fundamentals and also includes events that are not predictable like the war, earthquakes and so forth will be reflected in the price market.
2. The trend of price
That is the price of foreign exchange will continue to move in a trend. Prices began to move in one direction, down or up. This trend will continue until price movements slow down and give warning before turning and moving in the opposite direction.
3. History reference
Because of technical analysis also describes the psychological factors of market participants, the historical movement to be a reference to predict price movements in the future. This historical pattern can be seen from time to time in the graph. These patterns have a meaning that can be interpreted to predict price movement
That is the price of foreign exchange will continue to move in a trend. Prices began to move in one direction, down or up. This trend will continue until price movements slow down and give warning before turning and moving in the opposite direction.
3. History reference
Because of technical analysis also describes the psychological factors of market participants, the historical movement to be a reference to predict price movements in the future. This historical pattern can be seen from time to time in the graph. These patterns have a meaning that can be interpreted to predict price movement
Fundamental Analysis
After we analyze the price movements using technical analysis, we also require a balancing analysis is fundamental analysis.
After we analyze the price movements using technical analysis, we also require a balancing analysis is fundamental analysis.
What is fundamental analysis?
Fundamental analysis is an analysis based on economic circumstances, political and global security. Information and news relating either directly with the economic situation can be used as an indicator of sufficient importance. There are several fundamental factors that are used for reference to analyze them as follows:
- The interest rate (interest rate)
- Balance of payment (BOP)
- Producer price index (PPI inputs)
- Consumer price index (CPI)
- Retail sales Non-farm payrolls (NFP)
- Gross domestic product (GDP)
