Market analysis is the most important factor for start forex
trading. If you are a beginner trader in the forex market then you should be
must learn about all types of forex market analysis. Market analysis will help
you to take perfect decision to open a single trade. Generally forex market
fluctuates by its own rules, patterns and worlds economic condition. You can
get clear forecasting about related currency pairs by market analysis. Keep in
mind better forecasting will help to make better profit in your forex trading.
There are three types of forex market analysis.
- Technical analysis
- Fundamental analysis
- Sentimental analysis
Now we will discuss all details about three types of forex
market analysis.
Technical analysis
Technical analysis includes analyze the forex market by
using market past chart data. For technical analysis you can use candle stick
chart for better result. Long term chart data can give you clear information
about market future position. For technical analysis you can set H4, Day, week
and monthly candle chart. Four hours candle chart data can give you clear
forecast about related currency pairs in forex capital market. Generally
technical analysis involves candle stick patters, support and resistance level.
Fundamental analysis
Fundamental analysis includes analyze the economic news
using forex economic calendar. You can find economic calendar in every forex
broker’s website. A economic calendar contain all types of worlds economic news
and up coming forecasting. For fundamental analysis you should be must follow
high volatility forex market news like, related currency pairs countries central
banks interest rates decision, press conference, pay roll news, unemployment
rate, Gross Domestic Product (GDP) report, Consumer Price Index (CPI) report
etc.
So, for taking forex trade for your passion you should
be must follow the all types of analysis guidelines. If you have proper
knowledge about forex market analysis then you can make good amount of monthly
profit from your forex trading career.
Sentimental analysis
Long term forex market trading experience is the key for
sentimental analysis. Only professional and experienced forex trader can use
this market analysis. Because you can not use sentimental analysis without long
term practical forex trading experience.
