What is your FX Analysis?

[Norman2008]

There are 2 schools of though when it comes to trading, technical analysis and fundamental analysis. Some would say that the technical analysis is the most precise way to trade FOREX.

Technical Analysis

It is all about the numbers. In its purest form, technical analysis considers only the actual price and volume behavior of the market or instruments. Technical analysis, are sometimes called, "chartists". Most chart patterns are consistent, reliable and repeat themselves. The technical charts show you the direction of the over all market. Remember listen to the numbers, follow the charts and not your emotions.

For example the currency pair EUR/USD is 1.4223 and it moves to 1.4160 and then moves to 1.4089 the market is on a downward trend. Concern yourself with what the market is doing and not what you think it might do. Listen to the charts and indicators.

Moving Averages

This is the price at a given point in time over a defined period of interervals. They are moving because they give you the current prices while calculating the "average" based upon the defined time period.

The moving averages lag the market, which will give you an indication of a change in trend. For example, combine a short term 5 day moving average with a 20 day long term moving average. You can detect a buy signal when the shorter term crosses the longer term moving average in the upward direction. The sell signal would be the shorter term crosses the longer term moving in a downward direction.

Other technical indicators to analysis are the Bollinger Bands, Ribonacci Retracement and Relative Strength Index RSI.

Remember with FX trading like anything there are no guarantees. "If in doubt stay out!"
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[Somya Gabriel]

When it comes to indicators i prefer a combination of MACD and the Bollinger Bands.
They have put me into positive trades very often.

[Mark27]

Yes these tow are very good to trade with

[abdull.basit27]

MACD is more reliable.

[muhammad.kaif27]

dont underestimate Bollinger bands

[Somya Gabriel]

MACD rules on the 15 min chart. Even if MACD is, say, trending up on the 1 hr chart, if it is trending down on the 15 min chart, that’s what you take your cue from. That’s not to say a shift in price direction is not in the works. It just means it’s coming, but not yet. In the meantime, you don’t want to miss what’s happening “in the now,” which is what is reflected in the 15 min chart.

[amna.joseph]

Even i vote for MACD. These are the most simplest and accurate indicator.

[Probafix]

Using powerful software to do all the forex trading analysis for you is the only smart way to go.