Three Types of Forex Analysis

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wisepowder

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Three Types of Forex Analysis
This article will introduce three general types of forex analysis. There is no answer as to which analysis is better. Traders need to know
all three and find the one that works best for them.To get more news
about WikiFX, you can visit wikifx official website.
Forex trading strategies are free on WikiFX (bit.ly/wikifxIN)
1. Technical analysis: the framework in which traders study price
movement. Technical traders can analyze charts, check past data and
predict trends with technical indicators such as K-lines, Moving
Averages, Bollinger Bands, etc.
2. Fundamental analysis: involving core factors that may affect a
countrys economy and currency exchange rates. Traders can forecast the
currency prices and predict market trends by poring over economic
indicators, government decisions and news headlines.
3. Sentiment analysis: determining market direction based on how
traders are feeling. Optimistic market participants can reflect a
bullish market and vice versa. As a trader, you have to decide how you
want to incorporate your perception of market sentiment into your
trading strategy, because sentiment cannot reflect all of the market
information out there.
The three types of market analysis complement each other. Traders may
use the one they are most comfortable with, but utilizing a mix of the
three techniques can help lower risks.

Posted 4 week ago

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