Showing posts with label forex analysis. Show all posts
Showing posts with label forex analysis. Show all posts

Friday, September 25, 2009

Forex Technique that proven works

I recently just found few Forex Technique that works, please do check

Moving Average Based Indicators

MACD also called (Moving Average Convergence Divergence)
The MACD indicator is the charts of the convergence and divergence which short term and long term moving averages. This seems complicated. MACD shows graphically when the short term movements of price rise even if it is slightly or fall faster than the longer moving average would suggest in normal state. This indicates the recent trend that can help determine forex.

Moving Average Envelopes
The Moving Average Envelope is the indicator that creates parallel lines to a moving average at certain percentages for example 5 percent. The lines create a band that can help measure price volatility and extremes in normal state.


Moving Average
The Moving Average is the most basic technical indicator that almost everyone use. when it comes to technical analysis. It is used to identify trends, as it smoothes price action into a single line chart or diagram. The Moving Average gives basic trading signals when price crosses them.


other than those, we also have Volume Based

Volume Based Indicators

Volume
Volume is very important to technical analysis in forex industry because it measures the the amount of buyers and sellers responsible that works behind market moves. If a currency pair has a strong price move either up or increasing in price or down or drop in value, the perceived strength of that move depends on the amount of volume for that period.


Accumulation/Distribution
This volume is also important, it is indicator that tries to gauge supply and demand for a currency pair by discovering if investors are generally will do most of their transaction as “Accumulating” (buying) or “Distributing” (selling) the pair.

On Balance Volume
On Balance Volume measures positive and negative money flow from normal state into currencies and acts as a leading indicator that may predict upcoming price changes.

Chaikin Money Flow
Chaikin Money Flow is an oscillating version of Chaikin's earlier indicator, Accumulation/Distribution. Both accumulation and distribution indicators measure the degree to which money is flowing into or out of a currency pair. this indicator will play imprtant role to your forex analysis

Tuesday, March 3, 2009

Forex Forcasting Method

In the Forex trading there are two common analysis methods which you as the investor can use to forecast the Forex Market. The first one is technical analysis and the second one is Fundamental analysis. This article will cover the technical analysis which can be very useful in your daily activity to deal with the Forex Market. The technical analysis gives the approach from the technical point of view while the fundament analysis presents the analysis about the market movement cause.
Let me explain in a simple word using a day to day example. Imagine that you are a salesman who sell high end product, sport car. You may wonder how to sell this product. You think who might spend their money to buy this expensive product. So, you start looking for ay possibilities to sell this luxurious car. Finally you know that your consumer will be a high class people who have lots of money to spend for fancy cars. Unfortunately, you get nervous seeing the fact because you think that you have not ready to sell due to your sales skill. After all, you find a great sales workshop and seminar. You join in that great program and start learning about how to sell. From this story we can conclude that, as the salesman, you learn the technical thing in the workshop and seminar which will give you the technical skill. At the beginning when you do the research, you have performed the fundament analysis about yourself and about the market landscape.
Technical analysis in Forex trading is used to predict price movements and market trend in the future. It studies the history about the market. It pays a great attention at the analysis chart. The technical analysis analyzes the real thing which has happed on the market. There are three basic concepts about this analysis.
The first one is the actual price is the price itself without involving the market condition such as political issues, supply and demand matter, and so forth. That is the pure technical analysis. The second one is the trends shows the real data about the price. You should remember that price has its trend. Price will form a curve in the graphic trend where it has its own pattern. The last concept is about the history. The trend can be drawn in a curve. By looking at the curve you will recognize that history will be repeated.
By understanding this analysis method, you can maximize your Forex Revenue.