Analytics of the foreign exchange market

Every trader starts his working day with the fact that he evaluates the current situation and conducts his own forex analysis. In doing so, he can also review the recommendations of brokers and the trading signals of successful traders to confirm their forecasts.

On the current day there are an infinite number of methods for future price forecasting. In this case, it often happens that they contradict each other, so traders often have difficulties with the choice of the forecast, which you can trust. Nevertheless, you can try to determine the main types, into which the analyst of the foreign exchange market is divided . Just on them, and should be guided in their trade. Let us consider them in more detail.

What is the analyst of the foreign exchange market "Forex"

The main areas for analyzing the future behavior of the price of a currency pair are:

• fundamental;
• Fractal;
• wave;
• technical.

A professional trader must understand all of these types, although often 1-2 of them are preferred.

Fundamental analysis shows general trends and is based on the evaluation of macroeconomic data. With its help you can determine "where the wind blows", but it is difficult to find the entry point to the market and the optimal levels for taking profits. Such an analyst of the foreign exchange market is necessary for understanding the global situation in the world of finance and is needed to predict periods of calm and active price spike.

Fractal analysis

This type - a relatively new direction in forecasting currency rates on "Forex". The analysis of the currency market on this method proceeds from the basic provisions of the fractal theory and assumes the dependence of the future price on its past values. Fractals surround us everywhere, and in due time the well-known forex trader Bill Williams very successfully used it in the trade. Its indicators are included in the standard set of metatrader, and both these factors are a serious reason to pay attention to this direction in forecasting the course.

Wave Analysis

A fairly complex kind of predicting future prices. Nevertheless, many traders consider it to be the most powerful, flexible and promising tool. Analytics of the currency market, based on Elliott waves, can not only indicate the markers for entering the market, but also predict the nearest change in trends and the duration of the current trend. The drawback of this method is that it is not fully formalized, and therefore always has some share of subjectivism.

Technical analysis

This method of forecasting the movement of quotations is based on the use of indicators, patterns, levels and graphic figures. Analytics of the currency market on the basis of this method allows you to trade for a very short period of time - up to several minutes. This allows you to successfully use it in intraday trading and simple pipsing. Here the important role is played by the choice of indicators, their parameters and the period of the graph.

Which analytics is better to use?

As elsewhere, in the forecast it is necessary to observe the rule of the "golden mean". On "Forex" there is no best or worst method - each of them has its own specifics and its positive aspects. The secret lies in their competent combination. We must first determine the trading system, this will just determine the choice. Successful trading!