forex analysis

Basic Technical Analysis

2009-10-10T00:20:00.000-07:00

Technical analysis is a dynamic market research conducted with the help of charts in order to predict the movement of a price. The use of technical analysis in forex trading, based on the following assumptions:

* Market movements reflect all the factors that influence it.
This is an important factor to understand technical analysis. Any factor affecting the market, whether economic factors, political, or purely psychological factors, the overall impact can be seen resulting from currency movements recorded in the chart. In other words technical data recorded in the chart gives a comprehensive picture of market dynamics. With this assumption a technical analyst who studied the charts and various technical indicators to try to understand what is happening in the market and trying to predict the movement of what would happen next.

* Prices move followed the trend
This assumption is the basis of all methods of technical analysis. If the movement of currency fluctuations purely random and does not have the technical trend of the analysis was not possible. But because currency movements have a trend of the technical analysis efforts to be possible and useful. The assumption that price movements follow the trend raises two effects. The first, the trend is going to continue normally and did not turn around without cause. The second, the trend will continue until another trend emerged and influenced the market.

* History is always repeated
Market dynamics are influenced by the behavior and actions of market participants. After all the action and reaction from market participants have a repeating pattern because apart from the characteristics of human nature is influenced by ‘Greed and Fear’ (greed and fear) the market makers also learned from experience that occurred in the past. With this assumption the technical patterns that have emerged in the past can be applied to predict the market movement will happen.

Currency Exchange in Forex

2009-10-07T23:02:00.000-07:00

Once we learn whether it was in the forex Forex Introduction I've posted before this time now we learn about the following currency exchange rate we submit penjelasanya
Exchange Rates

Just as in other trade instruments, the forex transaction prices stated in the bid price ( 'BID') and demand ( 'ASK'). Price quote ( 'BID') is the price level where a trader can sell the currency, instead asking price ( 'ASK') is the price level where a trader can buy currencies.

An easy way to remember: 'bid' or the price of 'sale' is always lower than the 'Ask' or price 'buy', in other words a forex trader always buys at a price higher than the selling price. The difference between purchase price and the selling price is called the 'spread' is none other than the transaction costs to be paid by a trader.

forexprices (9k)

For a beginner, read the currency pairs at first seemed a little confusing. But it is actually quite easy if you remember two things:

1. The currency was first mentioned base currency.
2. The value base currency is always 1 (one).

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So let's say the exchange rate of currency pairs USD / JPY 121.76 value it means that 1 U.S. Dollar (USD) is worth 121.76 yen (JPY). If the exchange rate USD / JPY moved up to the mean value of 121.92 U.S. Dollar, Japanese Yen rises as compared to 1 U.S. Dollar is now worth 121.92 yen. Or conversely, the currency fell against the yen today as U.S. Dollar to buy 1 U.S. Dollar Japanese Yen takes the value greater.

Of all the currency pairs of U.S. Dollar, there are four currency pairs where the U.S. Dollar is not the base currency. These four currency pairs are GBP / USD, EUR / USD, AUD / USD, and NZD / USD. If the specified exchange rate GBP / USD is 1.9864 means that 1 British Pound is worth 1.9864 U.S. Dollar. If the value of GBP / USD rose to 1.9918 so happened pound sterling currency strengthened against the U.S. dollar, or vice versa U.S. Dollar is weakening against the pound sterling. So to keep in mind, if the currency pair to rise or fall in value so that is strengthened or weakened the base currency.

Forex Introduction

2009-10-07T22:54:00.000-07:00

Foreign exchange market, or which is known as FOREX is the largest
financial exchanges in the world with a daily transaction volume
reaching more than 2 trillion U.S. dollars. Compare this with the
daily transaction volume of the New York stock exchange which only 25
billion U.S. dollars.

Then what is traded in FOREX? Of course, money. Stock exchange is a
transactions single currency with another currency. The basic
principle, the trader buys a currency type at low value and resell it
at a high value, or otherwise sell a currency at a high value and buy
them back when the currency fell in value. These currencies are traded
through a dealer / broker, and are always traded in currency pairs.
For example Euro U.S. Dollar (EUR / USD), U.S. Dollar and Japanese Yen
(USD / JPY), British Pound and Swiss Franc (GBP / CHF), and so forth.

In contrast to other financial markets like stocks that have a trade
center with the location and time specific trade, Forex has no
perdangangan center. Forex trading via interbank transactions that
occurred throughout the world and takes place continuously throughout
the day.

Until the end of 1990, the stock exchange can only be followed by
financial institutions, large and private individuals who have large
capital. In those days you just can participate in forex transactions
if it has 10 hinggal initial capital of 50 million dollars. Forex
originally only done by the bankers in order to limit the risks due to
currency fluctuations. Forex is not for traders, small traders like
us: us and you. But with the development of internet technology, the
forex brokers and dealers can split large transactions required in the
forex transactions with a smaller volume so that the trader-trader
with limited capital can come and participate. Now many common forex
brokers that require initial deposits under $ 500 U.S., and some
brokers even provide initial deposit requirement of only U.S. $ 10 or
less.

Forex-trading now is available to anyone. All you need is a computer
with internet connection is good enough and the material in this site,
the following material I will next post ..