Forex forecasting methods

In fact, Forex trading is similar to that predicted whether. Currency does not change randomly. Instead, it changes in a predetermined order that is determined by market demand. Therefore, trade is not of & # 39 is not possible, provided that the research and experience carried out correctly.

Predicting currency trading in the Forex market is done in two main ways. First, the technical indicators, and secondly, a market analysis based on economic news and trends. Both have to be done simultaneously.

Beginners can only predict on the basis of technical analysis, but advanced traders need to predict, based on news related to the trends of the economy.

Technical Analysis – this is a reasonable way to predict currency changes based on mathematical formulas. The users may not need to know the mathematical details associated with this type of analysis. They only need to know how to properly use these indicators.

For example, stochastic indicators this way to predict currency changes mean to see whether the rate is very low or very high for a relatively long period. In this case, & # 39 is a trade event and the trader can buy or sell the currency, which is traded.

On the other hand, the economic analysis is used to predict currency changes based on the financial condition of the country with the currency that is traded. It depends on the level of the industrial countries, as well as the political situation in the country. For example, if a country is at war, it is adab & # 39; etsya on the value of the currency of that country.

As mentioned above, this type of analysis requires advanced traders to be able to use it. Easier to & # 39 are technical indicators, and not even all of them, as some indicators can be difficult to use.

Strategic trading strategy – it is a way to predict currency changes on the basis of a combination of technical indicators and news analysis. For example, Forex strategy can have two technical indicators, such as stohastychny and MACD, and no news analysis is not included in the strategy.

For a more successful strategy for a trader should use fewer indicators for simplicity, as a rule, more simple, even greater success. This applies to many areas of our lives, not only for trading in Forex.

Predicting currency changes in a simpler way will give you a rough idea to help make a decision to buy or sell right now. The ability to predict currency changes – the key to success in trading. In other words, nepradkazanne how currency is lead to failure in the trade and lead to losses.

Source by Youssef Edward