Ges-r.Com – Fundamental analysis and technical analysis are important tools used by traders to identify price movements. In the end the results of the analysis will be used to determine the exact entry point. But how strong is the fundamental and technical analysis that beats the money-holder in forex?
Let’s talk big first. Technicians generally use various indicators, such as Moving Average to determine trends, Oscillator to identify overbought and oversold, and Bollinger Bands to determine Level Exit or Profit Taking. While the fundamentalists used indexato dataThe economy and index survey are published on various sites every week. Some fundamental data that could drive prices on the forex market… (Labor data, inflation, consumer activity and investor activity).
For traders who’ve sunk in the bitter sweet world of trading, of course would answer no. His analysis is not 100 percent accurate. For example you use technical analysis. The price has already shown overbought in the Oscilator indicator. You then put in the entry sell in the hope that the price will fall. Unfortunately, The prediction misses. Price keeps going up the trend and makes you experience floating loss.
What about the fundamental analysis user? For example, non-farm employment change data shows greater than the prospect. Then, you assume that the data bigger than the speculation mirrored the USD will rise. You then put in the entry buy when the news was released. But in fact, the US dollar is a joke and Stop Loss you’re stuckAfter the investigation, it turns out that there’s another factor that caused this, the profit-taking action.
From here on out, whatever the analysis, it’s not going to be able to face the real power that drives the market, that is, the owner of the money in Forex! In terms of whatever technical indicators are used, or deep research into news, it will all be powerless to face such real power.
Analysis of Easy and Recent Trading Forex Today 2021-2022
According to the basic theory of microeconomics, to determine the price of a product in the market, it all depends on its type of market. If the market is a monopoly, then the price will be set by the seller. If the market is monogamous, the price will be set by the buyer. But if the market is a competition,empurna, then the price will be set through the market mechanism, which is pulling or bargaining power between the seller and the buyer. This basic theory also applies on the forex market.
In trading forex the laws of the power of the Buyer and Seller apply. If the Buyer is the owner of the money in the forex stronger, the price will rise. Instead, if Seller as the owner of the money in the forex is stronger, then the price will move down. The size of the Buyer and Seller power is not determined by the number of traders doing entRy Buy or Sell, except for the amount of capital or money being traded.
For example, if a thousand traders opened up a Sell GBP/USD position with a deal equal to one lot each, they would still be unable to lower the pair’s price if on the other hand there were 10 traders who were carrying out a Buy action with a transaction power of 1,000 lots. The calculations are as follows.
From the calculations above, it’s clear that the market would prefer to move in position 10 traders with a total transaction of 10,000 Lot rather than 1,000 traders with a total of 1,000 Lot alone. The owner of more money in forex will be given priority.
Imagine when you were a technician who depended on the data sports results in the past. After doing research with various indicators and tools, you predict that the GBP/USD pair should go down. But, because the buyer’s power is too great, as great as any analysis, the price will keep moving up. So all the twinsAll the way to the original pattern, the forex owner determines the direction of the market.
Similar things can happen to a fundamentalist. You’ve had a hard time doing news research at first, but you’ll eventually lose to the power of the money-owner who entered the market at the time. Although according to analysis, the GBP/USD pair should be down due to the impact of a news, the price will remain driven It goes up when it turns out the Buy’s stronger in the pair.