For the trader on the Forex exchange, one of the important factors of successful trading is an analyst. Forex analysis is a set of conclusions and forecasts about the further events and expected activities of the trader, based on certain data.
The main parameters of this data are set by the traders themselves, taking into account their chosen trading strategy. There are two basic types of analysis in the Forex market: technical and fundamental. On their basis, traders build their trading strategy, and make some adjustments when changing any of the factors.
Nobody can give 100% forecast for future market conditions, but it is possible to predict the event with a possible probability greater than 50%.
Among entrepreneurs who use fundamental analysis in their practice, the main emphasis in the information gathering parameters is the release of economic and political news, which, in one way or another, affect the price movement of the market. These may be statements by central banks, various political events or natural disasters.
Those entrepreneurs who use technical analysis in their work are based on statistically-mathematical indicators in their forecasts. The basis for technical analysis is the analysis of a series of time-based prices, including the type of analysis, all statistical data that can help determine the most probable forecast.
Forex analysis is one of the main factors of competent and successful trading, so those who want to reach the top of the trade, it is necessary to investigate the main aspects of both fundamental and technical analysis on the exchange of currencies.