There are two main types of analysis one can use trading in the Forex. They are Fundamental analysis and Technical analysis. You should know a little about both types in spite of the fact that there has always been a debate which analysis is more preferable. It's necessary to examine the currency markets from aside and learn how news influences prices. You should know and understand the daily Forex news and market analysis proposed by professional currency analysts. Soon you'll realize what big part fundamental news are playing in your everyday trading. Luckily, most Forex news and analysis are offered on the Internet free of charge. We'll name these sites.
Technical analysis
Technical analysis is equal to charts, or, in other words, it's the study of price movement. The thing is that anyone can look at historical price fluctuations, and according to them, predict at some point where the price will go. In the charts one can find trends and patterns which will help you find good trading options. The most necessary thing in technical analysis is the trend! A lot of people know quite well that "The trend is your friend". You will more apparently succeed if you're able to find a trend and trade in the same direction, and Technical analysis can help you identify these trends as soon as possible. Then you'll get more beneficial trading opportunities.
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