There are various forecasting methods in the Forex market. Each has its own advantages and features. The choice of approach depends on the trading strategy, financial instrument and other criteria. Technical, fundamental and mixed analysis is applied. A professional trader must possess knowledge from each field.
The technical analysis uses advisors, lines, levels and indicators. In this approach, the following parameters are important:
• logic based on the rules of market mechanics;
• transparent conditions allowing to leave a position in time;
• the right balance of price and risk;
• high level of performance (you can check in history).
Fundamental analysis is based on an assessment of political and economic events affecting the foreign exchange market. This is a key, but the most difficult section of analytical work. Only professionals are able to correctly and correctly use the techniques of fundamental analysis.
Mixed analysis takes into account the combination of the two main methods. To obtain a more accurate forecast, these approaches should be used in combination. The combination of technical and fundamental analysis is the path to success.