Forex Fundamental And Technical Analysis

The Forex trading is one of the best type of trading in the current context and since last few years it became an art to make money through internet within a short time period.
There are basically two types of analysis which are used in Forex trading by traders. In name they are
1. Technical analysis
2. Fundamental analysis
Technical analysis
Most of the traders in Forex are used to trade (buy or sell currency pairs) according to their own technical analysis. In this type of analysis they use instruments known as indicators. According to these indicators they are looking for the trend and then they will decide what the entry and exit points are. Since Forex is a high risk high profit trade, traders may need to have a comprehensive knowledge on entry and exit points. Otherwise those traders get lost all their hard earned money.
Because of these it is important not only to learn technical analysis but also to learn how to practice them in a profitable way.
The following are the most common indicators uses for technical analysis.
1. MACD (Mean Average Convergence Divergence)
2. Stochastic
3. Bollinger bands
4. RSI (Relative Strength Index)
5. Ichimuko cloud
6. Parabolic SAR
7. EMA (Exponential Moving Average)
8. Support and resistance
It is important to learn and practice all the indicators together.
Fundamental analysis:
Fundamental analysis is depending on the economy of a particular country. If the economy of a country getting better that indirectly means the value of the currency of that country is getting better. Simply the value will increase. So the value of that currency pair will increase. (Example: Euro is the currency of Europe and the USD is the currency of US. The currency pair is the EUR/USD. Imagine the currency pair is now 1.3211. Then look at Forex News. If the economy of the Europe getting better the value of that currency pair will get increase. Then the traders go for buy order.
This is known as fundamental analysis.