Currency Trade Pro

Archive for February, 2010

Use the graph or chart is the most important in technical analysis because the only object of technical analysis is that price movements can be seen from the charts. Some types of charts are often used in technical analysis is as follows:

1. Line Chart

2. Bar Chart

3. Candlestik Chart

For bar charts and candlestick:
Open: Opening price (initial)
Close: closing price (last)
High: Highest price
Low: The lowest price
Calculated within a certain timeframe / bar = 5menit, or 30 minutes, or one hour or one day.

To learn candlestick chart patterns and its mean, please see here.

There are two types of analysis commonly used by traders, namely:

1. Fundamental analysis: to rely on news / rumors in the market.

2. Technical analysis: by relying on charts and mathematical formulas.

Fundamental analysis:
Fundamental analysis is the analysis that relies on the news happening in the world market. Or that was circulated in the market. This news content can drive a market trader’s emotions to determine the value of a currency, equity or other instruments. One example is the Central Bank rate hike by the Fed (U.S. central bank) can mean a stronger dollar. Rising prices will hoist petroleum stocks related to commodities and other things. If you do not like the analysis of complex-complicated (count, graph, etc.), then it is now time for you to learn this fundamental analysis.

To learn fundamental analysis correctly then you should study economics, the financial macro, for example why rising interest rates can make the value of the currency to strengthen. Here will not be described in detail about the economic laws. But there is some news (economic indicators) that if you can use as a reference. Read the rest of this entry »