Boxer Shorts Days Of The Weel

Lesson 5 -

There are two major schools that analyze the financial market and the forex market in particular:

Basic School (primary analysis)

Technical School (technical analysis)

long time that there is a constant debate in which we discuss which of these tests is better, we think that to make money online using forex need to know about both ... but our analysts have a greater preference for technical analysis for FOREX due to the depth of the market.

Fundamental Analysis Fundamental analysis studies
market through the study of the economic, social, political, weather and any type or kind that may affect supply or demand for the currency. In other words, we study the economies that are well compared with those who show more weakness. The concept is based on the coin features the national economy of a country.

Here are some examples: In the late 90's the U.S. economy was more robust than the European economy, and we could see one U.S. dollars more expensive than the current against the Euro. The main reasons are given by the interest rate. If an economy is to a large growth is natural to generate inflation, this is likely to raise interest rates, taking current market, restricting the supply of that currency and therefore a rise in the price. In other words: Every time he steps interest rate exchange rate should also rise.


will come later in greater detail which events should be taken into consideration for fundamental analysis in Forex, which leading indicators are interest rates and inflation in each country.

Technical Analysis

Technical analysis is the study of price movements, ie, technical analysis is the study of the charts. Technical analysis is based on all the events are cyclical (history repeats) and sees the price as questioned (all factors are reflected in the price) and most importantly believes that the price moves based on trends.

Through the study of graphs can determine patterns of behavior, trends, opportunities for input and output.

The concept behind the price moves in the trend gives us the advantage of being able to "follow" the market and trends in line transact automatically mean a greater chance for success in operations.

The following figure shows a change in trends