OVER BOUGHT & OVER SOLD
Over Bought & over sold it’s a situation where price is no longer able to continue the trend, because the price was too expensive or too cheap, in contrast with the support and resistance which is a psychological level which is basically just an unofficial agreement among fellow traders, over-Bought & over sold is a real state of the commonplace and the market place, if a rising trend is happening, then in these circumstances the currency becomes more expensive than usual, for example: we find a chart of GBP / USD is rising up, then that means the price of GBP is more expensive than the price in USD , and market participants will continue to hunt GBP in the hope prices will continue rising, and they still have sufficient capital to conduct action buy them, but there will be a point where buyers no longer possible to buy the GBP because the price was too expensive, things like this is called point overbought (OB), conversely when the downtrend is going on, there will be a point where prices will stop down due to selling price was too cheap, so the seller is no longer possible to sell its currency because it will lose money, this is called oversold (OS), price reaches a point in a state of OB & OS then the expected price trend will reverse direction and would soon cease, OB & OS also often occur at the point of support & resistance because indeed they are the points that are the same: a trend counter, but not always the case, because buy and sell decisions will be very supportive if the prices are not at this extreme point
The easiest way to determine the point OB & OS is to use the oscillator-type indicators such as RSI or stochastic, because this indicator was designed to determine the point OB & OS example: using the stochastic oscillator indicator, the stochastic, OB area occurs when the value of the stochastic at the level above 80 and OS occurs when the value of the stochastic at the level below 20, when prices go down and then touched the oversold area then the price will go up, because the price was too cheap to sell, the same situation also occurred in the overbought area, taking into account OB & OS we can predict when a trend will end and replaced with the next trend, thus we can set the time of opening a position for the better
bisnis online
Friday, August 26, 2011
Tuesday, August 16, 2011
FOREX CHARTS
SUPPORT AND RESISTANCE
Each trend will end if the increase will reach its peak, and then stopped rising and continues to decrease, and vice versa when the price goes down, there will be a point where the decline stopped and the prices go up, the point where the rising and falling prices stop is called, the point support and resistance,
Support = point trend change from down to up trend
Resistance = turning point of the rising trend to trend down
Point of support and resistance vital in FOREX trading, without knowing the point, can only follow the trend, without knowing that the actual age of the trend would not be much longer, will be replaced with the opposite trend or way-side situation, to determine the point of support and resistance is, with know the lowest and highest price movements in previous days, at a certain period for example one month, the point of support and resistance actually is, a reflection of the psychological point that is recognized by market participants simultaneously, because price movements are basically determined by the laws of demand and supply, when demand rises , while supply remains, then the currency will strengthen and conversely, when supply and demand much fixed, then the currency will weaken because the number of outstanding supply market, such as pricing in the state of an uptrend, when prices began creeping up, then traders will follow the trend is happening and take a buy position, this resulted in rising demand, so prices continue to boost up, but the other side of the majority of traders are also anticipating the end of the trend, by taking a specific resistance point, at that point they no longer have to buy the action, otherwise they will do profit taking, by selling the currency that they had bought earlier, if everyone does so it automatically reduced demand, and an increase in the currency began to lose strength, consequently, prices will again move down, so the key to trading is much easier how to determine the point of support and resistance the same point of support and collectively market resistance
Resistance point of support and can be penetrated by the price movement, in which buyers and sellers win less, then the price will continue to rise despite already reached the point resistance, in the circumstances, the actual point of support and resistance vote on the markets is not uniform / equal, and divided into several groups, one group estimates that prices will not rise until a certain level, while another group believes the price could go up past the first level of the specified group, if the second group to win the support and resistance will break, when the point of support and resistance impenetrable, it will form a point resistance support and new, that impregnable resistance point will be a new point of support, and prices move in the new range, while the new resistance point will be formed, to know the price will penetrate the point of support and resistance, have to learn some technical analysis instrument, especially the type of oscillators, to know the point of overbought and oversold point, should also be taken into account the fundamental situation that occurred, most of the points critical to know whether or translucent support and resistance, because it has experienced for many years in trading
The simplest way to determine the extent of support and resistance is, by the method of simple line or trend lines, without the use of formulas and calculations, the trend lines in the chart is a straight line, which connects sequentially from the top price or the lowest price, and this used to identify support and resistance, to limit resistance, just look straight at the highest price in a period, this line will give an indication for price prediction, as well as the limit of support, just look straight line at the limits of the lowest in a certain period
PIVOT POINTS
Pivot points are how the calculations to determine areas of support and resistance, pivot points are not classified as indicator, but is still regarded as a branch of technical analysis, because both make decisions based on projections of the past, consider the following formula:
resistance 1 = (2x pivot points) - Low
resistance pivot points 2 = + (high - low)
Support 1 = (2x pivot points) - high
Support 2 = Pivot points - (high - low)
accuracy of key pivot points are at the point of taking the high (H), low (L), close (C), and open (O) in accordance with the history that occurred, many traders who have modified their pivot, so they no longer use the H, L , C, and O on a candle before, but bias just some of the previous candle is condensed into a single, traders modify the formula so that the pivot point in accordance with their way of trading, as far as it pivots used quite extensively in trading every day, accuracy is also pretty, to facilitate , use Excel to determine the point of pivot points, support and resistance simply enter the H, L, C, and O only, pivot quite powerful when the price is not influenced by news or fundamental issue is strong, when news emerged of price volatility becomes routine, but more likely move because of irregular supply demand, pivot becomes less effective so it would be better to switch to use the calculation of support and resistance psychologically, not technically as pivot points
Each trend will end if the increase will reach its peak, and then stopped rising and continues to decrease, and vice versa when the price goes down, there will be a point where the decline stopped and the prices go up, the point where the rising and falling prices stop is called, the point support and resistance,
Support = point trend change from down to up trend
Resistance = turning point of the rising trend to trend down
Point of support and resistance vital in FOREX trading, without knowing the point, can only follow the trend, without knowing that the actual age of the trend would not be much longer, will be replaced with the opposite trend or way-side situation, to determine the point of support and resistance is, with know the lowest and highest price movements in previous days, at a certain period for example one month, the point of support and resistance actually is, a reflection of the psychological point that is recognized by market participants simultaneously, because price movements are basically determined by the laws of demand and supply, when demand rises , while supply remains, then the currency will strengthen and conversely, when supply and demand much fixed, then the currency will weaken because the number of outstanding supply market, such as pricing in the state of an uptrend, when prices began creeping up, then traders will follow the trend is happening and take a buy position, this resulted in rising demand, so prices continue to boost up, but the other side of the majority of traders are also anticipating the end of the trend, by taking a specific resistance point, at that point they no longer have to buy the action, otherwise they will do profit taking, by selling the currency that they had bought earlier, if everyone does so it automatically reduced demand, and an increase in the currency began to lose strength, consequently, prices will again move down, so the key to trading is much easier how to determine the point of support and resistance the same point of support and collectively market resistance
Resistance point of support and can be penetrated by the price movement, in which buyers and sellers win less, then the price will continue to rise despite already reached the point resistance, in the circumstances, the actual point of support and resistance vote on the markets is not uniform / equal, and divided into several groups, one group estimates that prices will not rise until a certain level, while another group believes the price could go up past the first level of the specified group, if the second group to win the support and resistance will break, when the point of support and resistance impenetrable, it will form a point resistance support and new, that impregnable resistance point will be a new point of support, and prices move in the new range, while the new resistance point will be formed, to know the price will penetrate the point of support and resistance, have to learn some technical analysis instrument, especially the type of oscillators, to know the point of overbought and oversold point, should also be taken into account the fundamental situation that occurred, most of the points critical to know whether or translucent support and resistance, because it has experienced for many years in trading
The simplest way to determine the extent of support and resistance is, by the method of simple line or trend lines, without the use of formulas and calculations, the trend lines in the chart is a straight line, which connects sequentially from the top price or the lowest price, and this used to identify support and resistance, to limit resistance, just look straight at the highest price in a period, this line will give an indication for price prediction, as well as the limit of support, just look straight line at the limits of the lowest in a certain period
PIVOT POINTS
Pivot points are how the calculations to determine areas of support and resistance, pivot points are not classified as indicator, but is still regarded as a branch of technical analysis, because both make decisions based on projections of the past, consider the following formula:
resistance 1 = (2x pivot points) - Low
resistance pivot points 2 = + (high - low)
Support 1 = (2x pivot points) - high
Support 2 = Pivot points - (high - low)
accuracy of key pivot points are at the point of taking the high (H), low (L), close (C), and open (O) in accordance with the history that occurred, many traders who have modified their pivot, so they no longer use the H, L , C, and O on a candle before, but bias just some of the previous candle is condensed into a single, traders modify the formula so that the pivot point in accordance with their way of trading, as far as it pivots used quite extensively in trading every day, accuracy is also pretty, to facilitate , use Excel to determine the point of pivot points, support and resistance simply enter the H, L, C, and O only, pivot quite powerful when the price is not influenced by news or fundamental issue is strong, when news emerged of price volatility becomes routine, but more likely move because of irregular supply demand, pivot becomes less effective so it would be better to switch to use the calculation of support and resistance psychologically, not technically as pivot points
Monday, August 15, 2011
FOREX CHARTS
TYPES OF FOREX CHARTS
There are several types of chart FOREX commonly known and we must understand it, to be able to perform technical analysis in FOREX trading because it will not escape from the chart, then must know control charts to understand how reading is a very important thing, to look at a chart you can access at www.netdania.com website provider of real time charts for free online FOREX, there are various types of charts used in FOREX trading:
1. Line chart
2. Dot chart
3. Bar chart
4. Candlestick chart
bar chart is more often used by traders in the United States to analyze the movement of currencies, while traders in Asia and Europe is more often used in conducting technical analysis candlestick, for line charts and dot charts its use is very limited and only certain circles, this is due to information presented in line charts and dot charts are not as complete candlestick and bar charts, most traders prefer to use the candlestick, as the candlestick has a view that is easy to read, consisting of: high, low, open, and closing price, otherwise it is able to provide information price movements at certain hours, the reading is much easier because there are colors on the chart, candlestick interpretation based on "pattern" that is, a green candle (blue) means: the price moves up or closing price of greater value than the opening price, on the contrary red candle means: the price goes down or closing price is lower in value than the opening price, highest price and lowest price can be determined by vertical lines, above and below the candle, in the example above is the lowest and highest price for each hour, for the period is used every hour, if using the term bullish and bearish, then the green is a bullish pattern, and red is bearish pattern
TREND
In trading profits can be obtained when the price moves up or down, the price trend is moving in one direction is called: the trend, the trend is the most important part to determine the position of trading, in trading there are only two positions that buy and sell, the trend also has only two types, namely, up trend and down trend, technical analysis, moving averages are used to predict trends, and the extent to which the trend will last, but sometimes the market does not move up or down, the situation is called "side-way", avoid trading on the state side way, because only drain patience, and there will be no results when we open to sell or buy, a situation usually occurs when the side way European or American markets are closed, or waiting for big news, in such circumstances is not much trading going on, thus causing the side-way situations
FOREX ANALYSIS
Some of the fundamental news that should be observed in FOREX Trading:
1. Economic Growth Data
GDP (Gross Domestic Product) is an indicator that measures the total value of goods or services produced a State, GDP consists of four main components as follows:
• Consumption Rate, Indicator-related: Consumer Spending
• Total Investment in State
• Government expenditure in the form of purchases of goods and services required
• Trade Balance is the difference in value of exports to imports, trade balance Trade Balance indicators are also often the focus of investors to determine the economic growth in one country, How to predict this story is the same as predicting the results of GDP
That affect the GDP (Gross Domestic Product) of a State is:
• Data Labor
Included in this category is the change in the amount of labor, unemployment data, the monthly wage payment data, more commonly known name is the Employment change, non-farm employment change (non-farm payrolls), non-farm productivity, unit labor costs, labor costs index, unemployment rate , claims, claimant count change that affects the level of consumption, employment data of the most powerful and rapid price movements are: non-farm payrolls, non-farm payroll employment is the number of new non-agricultural sector who work full time or part time to earn wages / official salary of more than 500 private and public companies,
• Data rate of consumption
If the salary / wages received by high consumption is also high, because certainly some wages are also spent on consumption, but consumption was also associated with the retail sector (retail sales), the consumption of home purchases, namely: housing starts, building permits, building approval, house price index, mortgage approval, national home price index, new home sales, and manufacturing sectors such as manufacturing production and industrial production, the effect of currency is directly proportional, if the housing sector to increase the value of the currency of the State concerned will rise
• The data of foreign capital
TIC net long - term investment transactions that affect one country
• Inflation Data
Policies issued by the government related to the rising prices of goods and services are: inflation is better known as the CPI and PPI, the consumer price index (CPI) is an indicator that measures the rate of increase of goods and services charged to consumers,Production price index (PPI) is a economic indicator that calculates the rate of inflation of goods purchased by the manufacturer or manufacturing company (processing of goods), if the inflation rate for goods and services purchased by manufacturers rose, then the manufacturer will also be raising the price of goods dab services to cover raw material price increases that have been purchased, if the price of goods and services rose then that's the beginning of the trigger inflation and the government together with the central bank will try to raise rates
2. Survey data
Often a survey of a number of people could affect market sentiment towards the currency in question, including: consumer confidence, consumer sentiment, consumer confidence index, PMI, Ivey, manufacturing and services PMI, Chicago PMI, IFO survey, German ZEW economic sentiment, etc. , the point when sentiment toward business, economy, manufacture decline, the market will usually react negatively to the currency of that State, of course, assuming that the market considers a very important survey data news
3. Data commodity prices (oil and gold)
America is the country's largest oil importer in the world, so the U.S. dollar becomes very sensitive to rising oil prices, when oil prices go up then the U.S. dollar (USD) will be weakened, so did Japanese YEN (JPY) for Japan, including oil importer after the 3rd world America and China, when oil prices rose, the dollar Canada (CAD) is likely to strengthen as Canada, including the second-largest oil exporter after Saudi Arabia, if the price of gold rises, then the benefit is Australia and New Zealand because they are the world's largest gold producers, exchange rate Australian dollar (AUD) and New Zealand (NZD) tend to follow the movement of gold prices, so the exchange rate affect each country if the price of gold rises, then the pair EUR / USD the EUR / USD tends to rise
TECHNICAL ANALYSIS
Methods of technical analysis is a method for analyzing past price data from a market, volume and open interest to predict price trends in the future, these data are then presented in graphical form, the main weapon of the technical analyst are charts, through This chart they can see the ongoing trend, the trend period, the volume of transactions, and psychological levels that exist, the parties who believe that technical analysis, they can learn patterns of movement of exchange rates in the future, based on observations of past exchange rate movements, and patterns depicted in the graph is always recurrent (history always repeats it self), and each market has a nature / character of its own
The market price (price trend) is determined by the attitude of traders who trade in it, this means that the market is moved by psychology trader, whether greed, fear, hope, despair, etc., technical analysis study the psychology of this market is illustrated in the form of graphs, if you have been able to find out: the ongoing trend, volume of transactions, Levels of psychological (support and resistance), and the period of time that happens, then you will get a huge advantage
1. Economic Growth Data
GDP (Gross Domestic Product) is an indicator that measures the total value of goods or services produced a State, GDP consists of four main components as follows:
• Consumption Rate, Indicator-related: Consumer Spending
• Total Investment in State
• Government expenditure in the form of purchases of goods and services required
• Trade Balance is the difference in value of exports to imports, trade balance Trade Balance indicators are also often the focus of investors to determine the economic growth in one country, How to predict this story is the same as predicting the results of GDP
That affect the GDP (Gross Domestic Product) of a State is:
• Data Labor
Included in this category is the change in the amount of labor, unemployment data, the monthly wage payment data, more commonly known name is the Employment change, non-farm employment change (non-farm payrolls), non-farm productivity, unit labor costs, labor costs index, unemployment rate , claims, claimant count change that affects the level of consumption, employment data of the most powerful and rapid price movements are: non-farm payrolls, non-farm payroll employment is the number of new non-agricultural sector who work full time or part time to earn wages / official salary of more than 500 private and public companies,
• Data rate of consumption
If the salary / wages received by high consumption is also high, because certainly some wages are also spent on consumption, but consumption was also associated with the retail sector (retail sales), the consumption of home purchases, namely: housing starts, building permits, building approval, house price index, mortgage approval, national home price index, new home sales, and manufacturing sectors such as manufacturing production and industrial production, the effect of currency is directly proportional, if the housing sector to increase the value of the currency of the State concerned will rise
• The data of foreign capital
TIC net long - term investment transactions that affect one country
• Inflation Data
Policies issued by the government related to the rising prices of goods and services are: inflation is better known as the CPI and PPI, the consumer price index (CPI) is an indicator that measures the rate of increase of goods and services charged to consumers,Production price index (PPI) is a economic indicator that calculates the rate of inflation of goods purchased by the manufacturer or manufacturing company (processing of goods), if the inflation rate for goods and services purchased by manufacturers rose, then the manufacturer will also be raising the price of goods dab services to cover raw material price increases that have been purchased, if the price of goods and services rose then that's the beginning of the trigger inflation and the government together with the central bank will try to raise rates
2. Survey data
Often a survey of a number of people could affect market sentiment towards the currency in question, including: consumer confidence, consumer sentiment, consumer confidence index, PMI, Ivey, manufacturing and services PMI, Chicago PMI, IFO survey, German ZEW economic sentiment, etc. , the point when sentiment toward business, economy, manufacture decline, the market will usually react negatively to the currency of that State, of course, assuming that the market considers a very important survey data news
3. Data commodity prices (oil and gold)
America is the country's largest oil importer in the world, so the U.S. dollar becomes very sensitive to rising oil prices, when oil prices go up then the U.S. dollar (USD) will be weakened, so did Japanese YEN (JPY) for Japan, including oil importer after the 3rd world America and China, when oil prices rose, the dollar Canada (CAD) is likely to strengthen as Canada, including the second-largest oil exporter after Saudi Arabia, if the price of gold rises, then the benefit is Australia and New Zealand because they are the world's largest gold producers, exchange rate Australian dollar (AUD) and New Zealand (NZD) tend to follow the movement of gold prices, so the exchange rate affect each country if the price of gold rises, then the pair EUR / USD the EUR / USD tends to rise
TECHNICAL ANALYSIS
Methods of technical analysis is a method for analyzing past price data from a market, volume and open interest to predict price trends in the future, these data are then presented in graphical form, the main weapon of the technical analyst are charts, through This chart they can see the ongoing trend, the trend period, the volume of transactions, and psychological levels that exist, the parties who believe that technical analysis, they can learn patterns of movement of exchange rates in the future, based on observations of past exchange rate movements, and patterns depicted in the graph is always recurrent (history always repeats it self), and each market has a nature / character of its own
The market price (price trend) is determined by the attitude of traders who trade in it, this means that the market is moved by psychology trader, whether greed, fear, hope, despair, etc., technical analysis study the psychology of this market is illustrated in the form of graphs, if you have been able to find out: the ongoing trend, volume of transactions, Levels of psychological (support and resistance), and the period of time that happens, then you will get a huge advantage
Friday, August 12, 2011
FOREX ANALYSIS
ANALYSIS IN FOREX TRADING
In online FOREX trading rests on our ability to analyze price movements correctly and accurately, essentially "buy at the bottom and sell at the top"
Playing the FOREX without knowing an analysis means we do of gambling in, and obviously with gambling then it will lead to a loss, don't expect to benefit in the long run, if they make a profit, usually because the luck factor and will not last long, in a matter of weeks to months, all we could run out of funds because of the lack of knowledge of analysis, so it can be concluded that knowing the analysis of the movement of price movement is an absolute unknown to the players of FOREX
Analysis in FOREX trading is divided into two ways:
• Fundamental analysis
• Technical analysis
Fundamental news that gave birth to fundamental analysis is the real mover of the market, rather than technical analysis, fundamental analysis can predict the movement known as significant and is caused by a sudden discharge of important news, weakness in the fundamental analysis is needed time to obtain information, often subjective because it involves many people's opinions and more suitable to be applied on a long term trading period
Technical analysis for factors known to exact and applicable to any method of trading (day trading, weekly, monthly, yearly trading), weakness in technical analysis is needed more data to support accurate prediction, relies heavily on the ability of Chart,every chart has a different method and each is not necessarily suitable to be applied to one another and difficult to apply in an inefficient market, no single method is perfect both fundamental and technical, here the experience of the self plays an important role, you can combine both analysis here (the fundamental and technical) in order to obtain the best trading system
Fundamental analysis is the analysis based view of economic development of a State, such as rising interest rates, inflation, non-farm payrolls, and others, trade in Asian session usually not show the movement of prices (flat), the price usually starts to move when entering the European session and the peak movement usually occurs during the American session, the economic news as U.S. session opened (U.S. Open) are usually highly anticipated market players / traders, because price movements can be up to 100-200 points, if you like the hustle and speed to be a major factor, then look at where open market because the number of fundamental issues and news that can cause prices to move with very active
Technical analysis is the analysis of price movements by looking at charts of price movements before (5 minutes, 30 minutes, 1 hour, or 1 day ago) are usually equipped with indicator to look at price trends and to decide when to enter the market (Entry) and when to out of the market (Exit), the basic calculation of the technical analysis is a mathematical fact that most of them are statistical and the science of chaos theory (pattern recognition), thus the results obtained may be a number of exact and definite, something that can not be given by the analysis fundamental, some technical analysts even said: "technical analysis trading is a cheat", if you prefer better to avoid technical analysis fundamental news that appears on the open market, it did when the market is trading at close to getting the best results
FUNDAMENTAL ANALYSIS
Fundamental analysis argues that the price moves because of the news and government policy, and the market response to news issued, the basis of fundamental analysis is the information, the information quickly, many from a trusted source, and the ability to forecast (forecasting) the market reaction to news issued, is a vital component of the absolute must-have, in the absence of the above factors, it is difficult for a fundamentalist take advantage of news that is useful to obtain a profit, most of the fundamental news that play a role in determining rise and fall of currency values is the economic news or a security issue that is going on, for example: a terrorist attack or bomb explosion, in these conditions can be readily lost investor confidence and resulted in weaker currency quickly, the facts reveal that the conditions of war-affected Countries (unsafe or chaotic) effect on the value of its currency is declining, while the economic news classified as a very important news such as interest rate decision (interest rate decision), and also report payment of salaries outside the agricultural sector (non-farm payrolls). both this news may lead to price moves quickly and a big spike, other information such as unemployment, consumer confidence index and the producer or any other kind of news to determine whether a currency will be strengthened or weakened against other currency pairs, but still prices are formed in the hands of buyers and sellers, is the market size, not a right or wrong in news, what is needed is seller and buyer know the majority of reactions to the news that appears, when it emerged as the economic news is reported that the currency of a country tend to weaken the fundamental analysis is tasked to analyze the news that will pop up and its relation with the market reaction, sometimes the market is often driven by emotional moment , without any economic news, there is often an increase or decrease in the price action of currency, usually is caused by a shift in demand supply, because there are certain parties who perform acts of purchase or sale in bulk, by measuring the demand supply then we can know where prices will move, with increased demand (demand) while the supply (offer) fixed, then the price will soon be creeping up, and otherwise, when the supply increases but demand remains, then the prices will start to fall because many goods in the market
• news demand / demand is bullish, the market price movements look as if they would go down but actually going up
• news supply / supply is bearish, the market price movement as if to rise, but actual prices will fall
in trading every day you have to actively find the website up to date to obtain information of fundamental news State whose currency is traded FOREX market, register your email to the FOREX site for news that will be sent directly to your email as well as the association forum trader, you can also quickly see the news that will pop up and analysis on world money markets on the website:
In online FOREX trading rests on our ability to analyze price movements correctly and accurately, essentially "buy at the bottom and sell at the top"
Playing the FOREX without knowing an analysis means we do of gambling in, and obviously with gambling then it will lead to a loss, don't expect to benefit in the long run, if they make a profit, usually because the luck factor and will not last long, in a matter of weeks to months, all we could run out of funds because of the lack of knowledge of analysis, so it can be concluded that knowing the analysis of the movement of price movement is an absolute unknown to the players of FOREX
Analysis in FOREX trading is divided into two ways:
• Fundamental analysis
• Technical analysis
Fundamental news that gave birth to fundamental analysis is the real mover of the market, rather than technical analysis, fundamental analysis can predict the movement known as significant and is caused by a sudden discharge of important news, weakness in the fundamental analysis is needed time to obtain information, often subjective because it involves many people's opinions and more suitable to be applied on a long term trading period
Technical analysis for factors known to exact and applicable to any method of trading (day trading, weekly, monthly, yearly trading), weakness in technical analysis is needed more data to support accurate prediction, relies heavily on the ability of Chart,every chart has a different method and each is not necessarily suitable to be applied to one another and difficult to apply in an inefficient market, no single method is perfect both fundamental and technical, here the experience of the self plays an important role, you can combine both analysis here (the fundamental and technical) in order to obtain the best trading system
Fundamental analysis is the analysis based view of economic development of a State, such as rising interest rates, inflation, non-farm payrolls, and others, trade in Asian session usually not show the movement of prices (flat), the price usually starts to move when entering the European session and the peak movement usually occurs during the American session, the economic news as U.S. session opened (U.S. Open) are usually highly anticipated market players / traders, because price movements can be up to 100-200 points, if you like the hustle and speed to be a major factor, then look at where open market because the number of fundamental issues and news that can cause prices to move with very active
Technical analysis is the analysis of price movements by looking at charts of price movements before (5 minutes, 30 minutes, 1 hour, or 1 day ago) are usually equipped with indicator to look at price trends and to decide when to enter the market (Entry) and when to out of the market (Exit), the basic calculation of the technical analysis is a mathematical fact that most of them are statistical and the science of chaos theory (pattern recognition), thus the results obtained may be a number of exact and definite, something that can not be given by the analysis fundamental, some technical analysts even said: "technical analysis trading is a cheat", if you prefer better to avoid technical analysis fundamental news that appears on the open market, it did when the market is trading at close to getting the best results
FUNDAMENTAL ANALYSIS
Fundamental analysis argues that the price moves because of the news and government policy, and the market response to news issued, the basis of fundamental analysis is the information, the information quickly, many from a trusted source, and the ability to forecast (forecasting) the market reaction to news issued, is a vital component of the absolute must-have, in the absence of the above factors, it is difficult for a fundamentalist take advantage of news that is useful to obtain a profit, most of the fundamental news that play a role in determining rise and fall of currency values is the economic news or a security issue that is going on, for example: a terrorist attack or bomb explosion, in these conditions can be readily lost investor confidence and resulted in weaker currency quickly, the facts reveal that the conditions of war-affected Countries (unsafe or chaotic) effect on the value of its currency is declining, while the economic news classified as a very important news such as interest rate decision (interest rate decision), and also report payment of salaries outside the agricultural sector (non-farm payrolls). both this news may lead to price moves quickly and a big spike, other information such as unemployment, consumer confidence index and the producer or any other kind of news to determine whether a currency will be strengthened or weakened against other currency pairs, but still prices are formed in the hands of buyers and sellers, is the market size, not a right or wrong in news, what is needed is seller and buyer know the majority of reactions to the news that appears, when it emerged as the economic news is reported that the currency of a country tend to weaken the fundamental analysis is tasked to analyze the news that will pop up and its relation with the market reaction, sometimes the market is often driven by emotional moment , without any economic news, there is often an increase or decrease in the price action of currency, usually is caused by a shift in demand supply, because there are certain parties who perform acts of purchase or sale in bulk, by measuring the demand supply then we can know where prices will move, with increased demand (demand) while the supply (offer) fixed, then the price will soon be creeping up, and otherwise, when the supply increases but demand remains, then the prices will start to fall because many goods in the market
• news demand / demand is bullish, the market price movements look as if they would go down but actually going up
• news supply / supply is bearish, the market price movement as if to rise, but actual prices will fall
in trading every day you have to actively find the website up to date to obtain information of fundamental news State whose currency is traded FOREX market, register your email to the FOREX site for news that will be sent directly to your email as well as the association forum trader, you can also quickly see the news that will pop up and analysis on world money markets on the website:
News medium that is expected volatility, is news that can make the price move actively around 30 points, when the news emerged, while the news that high volatility is expected, the news can make currencies move 50-150 points, when the news was release
50 Characteristic of news affecting the exchange rate of US dollar is:
50 Characteristic of news affecting the exchange rate of US dollar is:
1. U.S. non-farm payrolls rose US dollar strengthens (the effect of 100-200 pips)
2. USA trade balance rose US dollar strengthens (the effect of 70-120 pips)
3. U.S. interest rate rises statement US dollar stronger (effect 100 pips)
4. U.S. durable good orders rose US dollar strengthens (the effect of 50-100 pips)
5. Trichet, Bernanke, fukui speak US dollar strengthens (the effect of 30-100 pips)
6. Producer price index ,US dollar strengthens (the effect of 50-60 pips)
7. PPI excl, food and energy US dollar strengthens (the effect of 50-60 pips)
8. Consumer price index (CPI) down US dollar strengthens (the effect of 50-60 pips)
9. CPI excl, food and energy US dollar strengthens (the effect of 50-60 pips)
10. Unemployment rate down US dollar strengthens (the effect of 30-50 pips)
11. Average earnings rose US dollar strengthens (the effect of 30-50 pips)
12. Balance of payments rose US dollar strengthens (the effect of 30-50 pips)
13. Budget deficit down US dollar strengthens (the effect of 30-50 pips)
14. Business Inventories down US dollar Stronger (effect 30-50 pips)
15. Capacity Utilization up US dollar Stronger (the effect of 30-50 pips)
16. Car Sales up US dollar Stronger (the effect of 30-50 pips)
17. PMI Chicago Up US dollar Stronger (30-50 pips effect)
18. Construction Spending Up US dollar Stronger (Effect 30-50 pips)
19. Consumer Confidence Index Up US dollar Stronger (Effect 30-50 pips)
20. Consumer Credit (CI) Up US dollar Stronger (Effect 30-50 pips)
21. Consumer Spending (expenditures) US dollar Stronger (Effect 30-50 pips)
22. Cost of Living Increases US dollar Stronger (Effect 30-50 pips)
23. Current Account Down US dollar Stronger (Effect 30-50 pips)
24. Corporate Profit Up US dollar Stronger (Effect 30-50 pips)
25. Deflation Up US dollar Stronger (Effect 30-50 pips)
26. Discount Rate Up US dollar Stronger (Effect 30-50 pips)
27. Economic Monetary System (EMS) Up US dollar Stronger (Effect 30-50 pips)
28. Factory Orders Up US dollar Stronger (Effect 30-50 pips)
29. Federal Budget Up US dollar Stronger (Effect 30-50 pips)
30. Federal Reserve Fund Up US dollar Stronger (Effect 30-50 pips)
31. Gross Domestic Product (GDP) Up US dollar Stronger (Effect 30-50 pips)
32. Gross National Product (GNP) Up US dollar Stronger (Effect 30-50 pips)
33. Housing Start Up US dollar Stronger (Effect 30-50 pips)
34. Industrial Productions Up US dollar Stronger (Effect 30-50 pips)
35. Invisible Trade Down US dollar Stronger (Effect 30-50 pips)
36. Jobless Claims Rise US dollar Stronger (Effect 30-50 pips)
37. Leading Indicators Rise US dollar Stronger (Effect 30-50 pips)
38. Money Supply (M1, M2, M3, M4) Up US dollar Stronger (Effect 30-50 pips)
39. The National Association Up US dollar Stronger (Effect 30-50 pips)
40. NAPM Up US dollar Stronger (Effect 30-50 pips)
41. Personal Expenditure Up US dollar Stronger (Effect 30-50 pips)
42. Personal Income Down US dollar Stronger (Effect 30-50 pips)
43. Prime Rate Up US dollar Stronger (Effect 30-50 pips)
44. Public Sector Debt Repayment Up US dollar Stronger (Effect 30-50 pips)
45. Trade Sales Down US dollar Stronger (Effect 30-50 pips)
46. Trade Deficit Down US dollar Stronger (Effect 30-50 pips)
47. Trade Weighted Index Down US dollar Stronger (Effect 30-50 pips)
48. Unit Labor Costs Increases US dollar Stronger (Effect 30-50 pips)
49. Value Added Tax Increases US dollar Stronger (Effect 30-50 pips)
50. Visible Trade Up US dollar Stronger (Effect 30-50 pips)
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