Decisions of traders using technical analysis, i.e., analysis of two (technical analysis) or fundamental (fundamental analysis).
Technical analysis (technical analysis) using the table, the trendline, indicators such as: Moving Average, mobile average convergence divergence (MACD), relative of strength index (RSI), tapes Bolinger, Fibbonaci, coterie, point pivot models model/candle and other mathematical analysis to study the market opportunity.
While the fundamental analysis (fundamental analysis) to predict the movement of the price with the translation of several of the information of the State of the economy, including news, reports and policies issued by the Government and also the rumors.
Analysis (technical analysis) of technical and fundamental analysis (fundamental analysis). What is the best?
Back to the basics of forex trading. What are the causes of price movements?
The answer is: hope and speculation on the market! The news was not the cause of the evolution of prices. On the other hand, the calculations of mathematicians/indicators is also not a driving force behind the price.
In the technique (technical analysis), when a trader based on the graph, for example the tendency and MACD line showed that price entered the trend line lines MACD intersection. And if the price rises, does not mean such indicators of patterns that cause the movement of the price! But given that many traders is perpatokan in the lines. At the time, they are the same (buy/LONG) the theory of corresponding indicators. This is what causes the price actually increases according to the predictions of the indicators.
Essentially, the indicator is simply as a supporter/follower and not the causes of the price movement.
On the fundamental band analysis (fundamental analysis), a drastic price move occur when there are events that are unexpected. These events can increase or decrease the interest rate of the Central Bank, political events and wars. An example is the events of September 11. When the events of September 11 happened, weakened due to rate USD to predict events across worldwide will have effects against the United States if the USD weakening likely. This incident led many players in the market to sell USD. The effects really USD rate has dropped dramatically.
The real question, it is a large part of the exchanged money based on fundamental analysis and technical analysis ?
In general, major banks, hegde and other large financial institutions Fund used the basic analysis (fundamental analysis). And because they are the owners of most of the money in the world, so if they make a trade, then prices will move according to what they do. This is in accordance with the laws of the economy, for example, when there are many buyers will reduce USD, and then increases the number of dollars in circulation in the market, making the price of USD.
What happens with the shopkeepers who use technical analysis (technical analysis). It is true that they have a sum of money as long as previous financial (although the combined total of). In addition, various technical indicators, in the hundreds and a different schedule. What makes any indicators and time to produce varied predictions.
Tips for traders who use technical analysis (technical analysis) and fundamental rights (fundamental analysis)
For those of you who use the technique (technical analysis), the advice that we offer are: use of the common indicators are widely used by merchants and trade only when there is no new major economic.
For those of you who use the Basic (fundamental analysis), the advice that we offer are: patience, discipline, fair trade when there are important forex economic calendar (economic news) and ensure that the use of time/hours is really appropriate.
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