User:Matterornot

Forex Signals
Any Forex traders who want to get serious of Forex Trading start on Forex technical analysis, which of course talks about Forex trading signals.

Technical Analysis
Technical analysis is the framework in which traders study price movement. he theory is that a person can look at historical price movements and determine the current trading conditions and potential price movement. The main evidence for using technical analysis is that, theoretically, all current market information is reflected in price. If price reflects all the information that is out there, then price action is all one would really need to make a trade. Now, have you ever heard the old adage, "History tends to repeat itself"? Well, that's basically what technical analysis is all about! If a price level held as a key support or resistance in the past, traders will keep an eye out for it and base their trades around that historical price level. Technical analysts look for similar patterns that have formed in the past, and will form trade ideas believing that price will act the same way that it did before. In the world of trading, when someone says technical analysis, the first thing that comes to mind is a chart. Technical analysts use charts because they are the easiest way to visualize historical data! You can look at past data to help you spot trends and patterns which could help you find some great trading opportunities. What's more is that with all the traders who rely on technical analysis out there, these price patterns and indicator signals tend to become self-fulfilling. As more and more traders look for certain price levels and chart patterns, the more likely that these patterns will manifest themselves in the markets.

Fundamental Analysis
Traders offen find overwhelming in doing Forex fundamental analysis. Studying the overall economic situation in one country is hard enough, studying that in all the countries that have currencies trade in the foreign exchange market comes to impossible. I don’t even think the chief economist in Morgan Stanley can do that. How to trade Forex using Fundamental Forex analysis? Well, I suggest Traders offen find overwhelming in doing Forex fundamental analysis. Employment

Employment situation of the country influences its currency more than anything else. The high unemployment rate is no doubt a curse to its currency. Interest rate

Financially speaking, if a country raises its interest, it will boost its currency. The reasoning is that investors will want to move in that country for a higher return.

Forex traders believe the direction of the interest rate is more important. That’s because Forex traders take interest as a fundamental indicator, or fundamental signal. The directional change of interest indicates the market sentiment and perception is going to be affected much bigger than otherwise. However, if the central bank raises interest at consecutive periods, that’s a forex signal to investors that the currency rate is going to up probably quite significantly. Interests rate is a key factor for Forex fundamental traders. Interests drive the forex rates to a great extent. Generally speaking, the interest rate rise will likely to appreciate the currency when nothing else changes, and vice versa. The underlying reason is more than simple, a rise in the interest rate will make the currency worth more in future. To counterbalance the effect, the currency has to appreciate.

GDP

It’s the most fundamental way to evaluate a country’s economy, flawed in some ways though. If economist’s calendar forecasts a higher GDP, traders will treat this as bullish signal to enter the Forex markets.