By itself, the foreign exchange market was originally createdto ensure the conduct of banking operations between different countries. Forex is a market, or rather, one of its components, enabling traders to profit by selling and buying currency.
Like any market, Forex is a clear mechanism, subject to its rules and laws. The task of the trader is to anticipate the movement of the price of one or another currency pair.
Different factors affect the quotes.There are a number of events with the help of which traders with experience analyze in which direction the price will move. Analytics and the forecast of the currency market is one of these tools.
In the world there are always different events,which affect the movement of market prices. The market can very significantly push in one direction or another and the speeches of bank executives and well-known politicians, and forecasts of the gurus and experts of the currency free market.
Often such information is distributed specifically to weaken, strengthen or exert pressure on some currency.
There are many financial exchangesanalysts who regularly publish their analysis of the foreign exchange market. Exact forecasts do not always happen, and they are based, as a rule, on the available data on the international situation, economic calculations and trends, as well as a variety of trading indicators.
The profession of the exchange analyst has become the lasttime is quite in demand. Such specialists process various data and information available to them, conduct invisible links to them and make their own forecasts. Of course, their statements are not unsubstantiated and often prove to be true, however, so that unthinking confidence and following others did not turn out to be a loss of capital for a trader, one should, in addition to studying analyst forecasts, rely on one's own knowledge and try to make their own forecasts.
Not always analysts are right and oftenthere are situations when, due to the incorrect interpretation by the stock analysts of the available information, traders go on the wrong path. And sometimes it is done intentionally, with the purpose of influencing a certain currency pair.
Among professionals engaged in analyticscurrency market Forex, there is a saying: "If you do not know what to say - say that the current trend will not change and will continue." This says a lot ... Therefore, in order to trade profitably and without unreasonable risks, each trader simply must learn to make his own forecasts and build trade with their account.
Thus, traders are recommended to treat analysts' forecasts as some kind of trading signals, but to conclude deals only by listening to them, but drawing on their own conclusions.
When preparing analytics and forecasts of foreign exchangeForex market uses a comprehensive analysis. That is, everything that is possible - the trends in the world community, events and news of the market, signals, indicators, trends, fundamental knowledge and data of technical analysis. All these indicators have clear links between each other. Do not neglect the news of the exchange, conducting an analysis of the Forex market. This is also very important.
The analysis of the Forex market consists of several parts:
Which of the methods of analysis to use and what to pay attention to more - everyone decides, since, as is known, the trader trades at his own risk.
Traders usually focus on that analystcurrency market Forex, accurate forecasts, compiled on which, come true most often. Everyone chooses the one that is most suitable for their chosen trading strategy.
Find different information about events in the world is not difficult. It is much more difficult to understand it correctly and interpret it accordingly, as applied to trading on the stock exchange.
First of all, the current analysis of foreign exchangemarket, is located in the trading terminal, which is used by all traders. These are graphs, indicators - their analysis helps to understand the trend of the trade trend. In addition, each professional trader develops his own trading strategy, which, in conjunction with a set of different tools, helps them make the right decisions during the trading session.
On the sites of brokers there are always sections where the analyst of the foreign exchange market is from the staff analysts and various tips for working with indicators and signals.
Where to look? Among:
Do not neglect printed publications, for example.they publish a lot of useful information for the trader. Regular browsing of popular Internet resources in the "Economy" section, visiting thematic portals about Forex trading. A novice trader does not necessarily have to be an analyst guru, not even knowing the intricacies of stock trading, it's sometimes easy enough to notice something or pay attention to someone's professional opinions or new trends.
Engaging in the analysis of the foreign exchange market and making its own forecasts of quotations, it is necessary to first understand the terminology, to understand what indicators affect the movement of prices on the exchange.
There are basic, sometimes obvious facts that lead to the growth or fall of the national currency. Any negative in the state leads to a weakening of the currency.
The better the trader understands what events (or,on the contrary, what events have not occurred) can affect the prices of the foreign exchange market, the better its trade is promoted, and the more it has the chances to receive a regular profit, and not lose its money.
When analyzing the foreign exchange market in one way or anothersituation or currency pair, you should always listen to the opinion of professionals, but you only need to make conclusions yourself, carefully comparing all known facts, and never trust someone else's opinion completely. Only then will there be an opportunity to achieve success.
To understand how to use analytical forecasts and data in trade, you can consider a simple example.
The cost of the pair at 112.80.
Having examined the price movement chart for this currency pair, it is clear that the price for it fell over the last week by more than 300 points. But this is not enough.
Next week, the Bank of Japan is scheduled to meet. Issues of credit policy will be considered. It is at the end of this meeting that it will be possible to understand what the currency pair is expecting.
1. Since Japan is a country whose economic aspirations are aimed at export, the competitiveness of goods is therefore important.
This means that an increase in the price of the state currency is not desirable. This suggests that, most likely, the cost of JPY should not increase.
2. After technical analysis, it can be concluded that support for the pair is at this mark, which means that the price can push off from it and go up.
So, the trader, having various information for the analysts of the foreign exchange market, gets a chance to profit by trading on this pair.
