Forex Tutorial And Reviews

There are two basic types of analysis that you can take when approaching the forex:

• Fundamental Analysis
• Technical analysis.

There is always a constant debate as better analysis, but to be honest, you need to know a little of both. So let's break each one down and then come back and put them together.
Fundamental Analysis

Fundamental analysis is a way of looking at the market through economic strength, social and political influence supply and demand. (Yada yada yada.) In other words, you see a good economy, and the economy sucks. The idea behind this type of analysis is that if a country's economy doing well, their currency will also do well. This is because both the economy of a country, other countries have more confidence in that currency.

For example, the U.S. dollar has gained strength as the U.S. economy is gaining strength. As the economy improves, interest rates could be higher to control inflation and as a result, the dollar's value continues to increase. In short, that is basically what fundamental analysis.

Later in the course you will learn specific news events driving the price of the currency the most. For now, just know that Forex fundamental analysis is a way to analyze the eye through the country's economic strength.
Technical Analysis

Technical analysis is the study of price movements. In one word, technical analysis = charts. The idea is that one can look at historical price movements, and, based on price action, can determine at some level at which the price will go. By looking at the graph, you can identify trends and patterns that can help you find good trading opportunities.

The most IMPORTANT that you've learned in technical analysis is the trend! Many, many, many, many, many, many people have a proverb that says, "The trend is your friend". The reason for this is that you are much more likely to make money when you can find trends and trade in the same direction. Technical analysis can help you identify trends in its early stages and because it gives you a very profitable trading opportunities.

So this type of analysis is better?
Ahh, the million dollar question. Throughout your journey as an aspiring Forex trader you will find strong support for both fundamental and technical trading. You will have people who argue that it is a fundamental course that drives the market and that any patterns found in the table just a coincidence. On the other hand, there will be people who argue that it is the technicals that traders pay attention to and because traders pay attention to it, common market patterns can be found to help predict future price movements.

Do not be fooled by either side of the extremists! One is not better than the others ...

In order to become a true master of Forex you will need to know how to effectively use both types of analysis. Do not believe me? Let me give you an example of how focusing on just one type of analysis can be turned into a disaster. I hope you enjoy this tutorial Forex.


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