STEP 4

 

by people to analyze Forex and every market's trends. These techniques are:

 

_ÏTechnical analysis: the use of technical indicators that give you clues about the trend,

 

signaling also a possible reversal in trend. Many technical indicators have been discovered

 

and used from traders. In your demo account you could see these technical indicators and

 

experiment with them. The more traders use these indicators the more powerful do they

 

become in their forecasting potential. The most popular of these indicators are RSI, Moving
Averages, MACD, Stochastics and Bollinger Bands. O lot of traders also use Pivot
Points. I include a small tutorial about technical indicators in my site at

 

http://www.easytradeforex.com/category/forex-technical-indicators/

 

_ÏFundamental Analysis: the analysis of the fundamental indicators in order to trade

 

profitably. These indicators are calculated and officially announced from every nation

 

separately. The fundamental indicators are often called the “market movers” because during their announcements heavy market movements take place. Many traders choose to

 

trade only during these announcements. This trading style is called by some people the

 

“Institutional Forex System” because large institutions like banks rely heavily on

 

fundamental analysis. You may learn more about fundamental analysis in my site at

 

http://www.easytradeforex.com/category/forex-fundamental-analysis/

 

Many people choose technical analysis for their trading style. Other prefer to trade

 

only the fundamentals. Which is the right choice? Well the answer is... both! You have to

 

experiment a lot with both technicals and fundamentals and then choose which is right for

 

you. Maybe you will realize that it is best to use both technicals and fundamentals. Maybe

 

you will find out that your are more a technician in Forex than a Fundamentalist. It is up to you to choose your tendency in trading through practice!