Currency Exchange Charts – Why you must know about price action
Basically, there are two kinds of traders in this world which first is who use fundamental analysis and second, traders who use technical analysis. To be honest, I really recommend use technical analysis rather than fundamental analysis. With technical analysis, you’ll only need to learn the price action of the market and get advantage both long term trading or short term trading.
The reason why I do not recommend trading using fundamental analysis is because it is only suitable for very long term forecast or trader. Using currency exchange charts analysis or technical analysis, we use different technical studies or learning the market pattern and use it to predict the market and use it as signal for buy and sell. We want to predict price movement with this type of analysis.
Bear in mind, reading the currency exchange charts may be difficult, however, forex market is the easier to predict and use than stock market and you should be lucky with that. Forex is also very stable compared to future and stock. Consider that you’re lucky for being a forex trader, I hope you’re really glad to hear that.
Inside the forex market, it has a tendency to making a strong trend and remember this, although it is volatile, it is more easier to predict than any other markets. One good thing is you can analyse only few currencies and easier to concentrate with them compared to other markets that full of thousands of stocks. With currency exchange charts analysis you can identify common pattern in the volatile market condition which is really profitable if you know how to predict it.
The currency exchange charts software that is provided by brokers is already enough for helping predict in the currencies, but before that you get to learn to read the chart and apply it technical analysis here. Tools such as fibonacci, candlestick, indicators are tools that are useful that will help you to predict the market which is a must learn.
Notice that I mentioned that the technical analysis in fx market a lot easier than in other markets. I know there might be some more resources guides which are helpful in understanding and learning technical analysis. Take time to read the chart and jot down any pattern and put it into your trading system. This way, you can learn and learn while experiencing something new. Now, you know regarding technical analysis, it’s about your time to test it.
If you’re looking for currency exchange charts analysis guide to help you along the journey, please check the website.
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