Forex analytics.

      One of the key elements to successful Forex trading is an effective use of Forex analytics. However, one must realize that there is no "right" or "wrong" way to use Forex analytics. Each trader has to find his/her own way and then apply that way in their trading. Many successful Forex traders have been using different types of Forex analytics to guide them as they made money trading. The following Forex trading tips will help you in setting up your own Forex analytics so that you can profit more in the foreign exchange market.
     The first thing you should do is to develop a system for charting your progress as well as your losses and profits. There are two main types of Forex trading strategies: fundamental analysis and technical analysis. Fundamental analysis deals with the type of trading actions that are taken on the Forex spot market, while technical analysis looks at the type of trading actions that are taken off of the Forex spot market. Both types of Forex trading strategies are important in determining your success and need for Forex analytics. Once you have developed your own Forex trading strategy, you can start looking for indicators that will help you in your goal of being profitable.
     Forex traders should also pay close attention to price action. When using fundamental indicators such as the Pogue and MACD, traders tend to look for the long-term support and resistance levels as well as any trends that might indicate a reversal. However, price action provides a very clear picture of what is going on in the markets. If you are looking for long-term trends, you should take a look at the monthly and weekly charts provided by some of the best Forex trading software programs. There are also many great websites that offer daily charts for you to download in order to better understand the price action of the markets.
     Another important aspect of successful Forex trading is to determine your open interest and your trade balance. Your open interest is simply the number of times you have traded in the Forex market during this time period. The higher your open interest, the more times you will probably trade. And the higher your trade balance, the more times you will likely lose money. Both of these areas will determine your overall profitability as well as your confidence in your trading skills. Many traders will develop a "feel" for the market that comes from being able to predict where they will open their trades and close them based on the open interest indicator of the Forex market.
     Many traders feel that technical analysis is superior to fundamental analysis in the sense that they do not like to have to make many determinations as to how they should trade. They just know that they are going to get into a trade and they want to be able to place a profit quickly. However, it is imperative that you have the right approach to trading in order to be successful. You must learn how to use both fundamental analysis and technical analysis. Using a mixture of both strategies can certainly boost your chance for success.
     In the case of fundamental analysis, there are many books and online resources that provide charts and analysis to determine the general trend and direction of the Forex market. Most traders feel that technical analysis has to do with how to spot market factors such as price, quantity, size, and other economic theories, directly impact the Forex market. A trader can use technical analysis to see where a particular currency might go if he or she knows what factors are affecting the spot market. One of the major indicators that are often used is the MACD or Moving Average Convergence Divergence. This indicator measures the average change in price of a currency over a period of time.
     Traders also use economic theories to determine when a particular currency should be bought and sold. These are called "wedge effects". Two economic theories that are used are Say's Law and Fibonacci's Law. According to Say's Law, prices rise when a company reports earnings and fall when investors believe that the earnings will decline. According to Fibonacci's Law, traders look for support and resistance levels that are price action traders can buy and sell before the price hits a certain level. There are many different technical indicators and they all have their own advantages and disadvantages.
     There are many free Forex analytics tools that traders can use to determine their trading strategies. However, it is always recommended to invest in a paid tool such as Metatrader4. Free tools may seem like a good idea, but they may not offer the level of tools and statistics that a paid tool will. Therefore, traders will always want to purchase a paid tool such as the Accu Trader or the Forex Funnel so that they can maximize their profits and reduce their losses.