The goal of currency trading is to take advantage of exchange rate movements in Forex, and here we will look at the two types of analysis that are basic and technical and see which ones are best. So which method is best for you? Let's find out.
First, let's look at the basic analysis, which is the study of supply and demand facts to find out where prices can go in the future. By studying economic and political events, the FX trade then buys or sells this news.
The problem with basic analysis is – even though we all have the same facts to look at, we all draw different conclusions from them. Dealers do not respond to news and see it logically, they respond to feelings of greed and fear as well, which means you cannot trade the news with profit.
If you look at foreign exchange markets, it's not news that & # 39; & # 39; s important traders reaction to it & why, do you see markets break when the news is best and rally when it is & # 39; s worst.
The problem when studying basic elements is this kind of study that does not take into account that traders are emotional beings, and this is where the technical analyst has a huge advantage.
If you use technical analysis, you just assume that the basic supply and demand situation will be reflected in price action, but of course you don't just see the news, you see how every trader has acted in relation to it and the price you see gives you all the news and the business Psychology at the same time.
If you want to win at Forex trading, not only is using Forex charts a better way to trade than trying to trade the news, it also takes a lot less time. FX Technical Analysis allows you to search for triple digit gains simply by following the price action and is the best way to trade Forex.