Forex Fundamental and Technical Analysis - Best Method

Technical and Fundamental Analysis

Previously we have known what is forex, broker, how to deposit and how to use MetaTrader. whether we have been said to decide buy or cell in forex trading? Of course not, without analysis in forex trading with gambling .. for that before we have to understand what is the technical analysis and fundamental analysis. 

There are two basic approaches to analyzing currency markets, fundamental analysis, and technical analysis. Fundamental analyzes analyze concentrated on the underlying causes of price movements, while technical analysis studies the movements of the price itself.

Technical analysis

Technical analysis is the use of action to attempt to predict future price movements, based on an analysis of past time and readings or understand the graphic representation. Although during the advent of various thoughts on various forms in technical analysis, generally all are based on the graphic history of the currency. As long as one is aware of the differences from the fundamental and technical analysis, both can also be used to connect with each other, even sometimes they have different conclusions.

Fundamental Analysis

A lesson from a specific situation, such as warfare, discovery, and change in a governing body, which can affect demand and supply, and consequently also on the market price. Fundamental analysis consists of examining the indicators of macroeconomics, consideration of market and political assets when evaluating a country's currency at a certain time between each other. Macroeconomic indicators include values such as growth values, as mentioned by Gross Value of Products of Domestic Income, interest rates, inflation, unemployment, money supply, State foreign exchange reserves, and productivity. 

Market assets consist of stocks, bonds, and housing. Political considerations result in a degree of trust in the government of a country, state of the situation of security stability and level of certainty. 

Sometimes the government stands when the market forces to make a serious impact on their finances, so the government intervenes directly to keep their country's finances in order not to deviate too far from the desired level. 

Financial interventions are initiated by the Central Bank and are usually scheduled although they have had an impact on the Forex market for a while. A Central Bank may take global buying/selling actions for each of its currencies in other currencies or bind itself to mutual interventions in collaboration with other central banks to at least confirm the effects of such interventions. Alternatively, some countries may manage their respective currencies,

Technical Analysis or Fundamental Analysis?

One of the most dominant debates in the financial market analysis is about the validation relationship of the second-tiered sequence of analysis, Fundamental and Technical.

Combining the two approaches is a great step for placement in the 3-month and one-year period. 

Nevertheless, the empirical evidence further unmasks that long-term technical analysis helps to identify long-term movement moves, However, most of the traders are more obedient to technical analysis because it does not take hours to learn. Technical analysis can follow many currency movements at one time.

Fundamental analysis, however, seeks to establish itself in excessive amounts of data within a market. Technical analysis works well because financial markets are always trying to build a strong direction of movement. When the technical analysis has been outlined, it will be easy to use for various time constraints in money market transactions.