Understanding What Affects Prices in The Forex

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This article discusses some of the differences between technical analysis and fundamentals, and to explain a little of each trade. Excerpts have been best-selling Market Wizards with Jack Schwager interviews Ed Bruce Kovner and Seykota.
Ed is a trend trader (uses technical analysis) and also based on the insights of 20 years of experience. Definitely emphasizes its confidence in the technical analysis. When you’re reading this, I compare the “heart” of knowing the basics can influence the market, but could be wrong, which can not be just reading a lot of letters from well. Here are the exact words “Fundamentals that you read the typically useless on the market has already discounted price, and what I call” funny-style. If detected early, before any other faith, then you would be a valuable “surprise – a spiritual.”
Ed says his priorities when trading is a long-term trend, the current charts and choose a good place to buy or sell, in that order.
Bruce says that the technology is impressive and very useful, but does not leave a key tool.
It is important to note that technical analysis is a critical method to understand the history of market movements and therefore useful to identify trends. In fact, we say the currency is going, but the historical analysis of the data. So we must use our intelligence to say what the trade in future operations.
Technical analysis can be compared to patients taking the temperature. Please note this is ignorance, and that you know, if the markets are active, or cold and numb.
It also collects unusual behavior. All of which creates a new chart pattern is unusual. It is also called “letters of the research is absolutely essential, and to warn me of a ten-year program and possible changes.”
It is, in principle, help to indicate the commercial value to increase or decrease.
Everything that makes a country brand for the foreign exchange market. Consumption, public spending, the employment index, government policies, political interests, and even a single test can influence the market significantly.
In summary, the criteria that indicate the direction of the price, but prices are not accurate.Graphical analysis or technical analysis is better than that which one can actually increase your chances of getting rid of some of the seeds.
The reason for this is that technical analysis has been pointed out that many traders use charts to trade, and at any time, to do the same rows of the same resistance and support lines. So if you can read the cards so you have an incredible opportunity to predict market movements. The best way to learn the effect of key variables to know part of the financial information at a time. This will help you make more educated trades.


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