How to analyze forex movements based on news

For example, in Europe and the United States, the EU news is good, such as reducing interest rates and the like, then Europe and the United States are going to rise, and in the same way, if the United States data is preferred, then Europe and the United States will fall.

Foreign exchange investment is profitable through buying and selling transactions, so the **** it shows will show a certain regularity, which can help investors analyze the trend.

Then, for investors, it is the key to analyze foreign exchange ** and look at the trend chart! The summary of the review should grasp these key points:

1.Choose the type of trade that's right for you. Most investors are not professional, they just want to make some extra money through their spare time super foreign exchange, so for investors with limited time, you can consider medium and long-term trading, technical trend oriented, can not simply understand the negative news, focus on medium-term investment, do not have to indulge in ** in and out.

2.Pay attention to the filtering of market information. Generally speaking, there are a lot of various news in the foreign exchange market, and many times, investors cannot know which news is true and which news is false.

Therefore, investors should try to choose some more formal and reliable information channels.

3.The amount of news and data in the foreign exchange market every day is amazing, but no matter what, data is always the most powerful proof inWhen trading, it is still mainly about analyzing data.

4.Strong market speculative forces always come firstThe psychological effect of intervention is greater than the actual effect, the specific situation should be combined with the technical trend to do analysis, generally speaking, the central bank's intervention in the long term is correct, but for the first time, the market often moves against the behavior of the central bank, the more the intervention rises (falls), so investors must have a clear understanding of the long-term and ** effect of the intervention.

Under the floating exchange rate system, there are only three types of foreign exchange, namely rising, falling and consolidating. In the forex market, consolidation** accounts for about 70 -80 of the trading days of each year, and the remaining 20 -30 are long or short**. In the consolidation**, investors should first distinguish the range of consolidation, and then sell at the upper end of the range, buy at the lower level, that is, the so-called buy low and sell high, in order to obtain profits, and the risk is not too large, if investors can rationally implement the stop loss strategy, they can even increase the amount of investment to obtain greater profits.

For the forex market, the two main methods of analysis are fundamental analysis and technical analysis. Fundamental analysis focuses on financial and economic theories and political developments to determine supply and demand factors. Technical analysis looks at ** and volume data to determine how it will move in the future.

One of the most obvious differences between fundamental analysis and technical analysis is that fundamental analysis studies the causes of market movements, while technical analysis studies the effects of market movements.

When valuing a country's currency in another country's currency, fundamental analysis includes the study of macroeconomic indicators, asset markets, and political factors. Macroeconomic indicators include figures such as the economic growth rate, which are calculated from factors such as gross domestic product, interest rate, inflation rate, unemployment rate, monetary volume, foreign exchange reserves, and productivity. Sometimes, the currency market is intervened to prevent the currency from significantly deviating from the desired level.

Interventions in the currency market are carried out by ** banks and usually have a significant but temporary impact on the foreign exchange market. Banks can intervene unilaterally in the currency of another country or in conjunction with other banks in order to achieve more significant results.

Because the factors that affect the trend of the international foreign exchange market are very complex, neither fundamental analysis nor technical analysis is omnipotent. Some studies have shown that in the forex market, fundamental analysis is more effective in terms of long-term trends (more than 1 year), while technical analysis is more suitable for shorter time horizons (0 to 90 days). Experts suggest that a combination of the two methods will work best for a period of 3 months to 1 year.

If you want to get the ideal income from the foreign exchange market, you must learn some necessary analysis methods, not only fundamental analysis, but also certain technical analysis knowledge. Improving one's own level is the magic weapon for making profits in foreign exchange market investment.

The amount of news and data in the foreign exchange market every day is amazing, but no matter in the world, data is always the most powerful proof, and traders still focus on analyzing data when trading;

Amateur investors should be guided by technical trends, not simply understand the negative news, pay attention to medium-term investment, and do not have to indulge in ** in and out;

Combined with the U.S. index Bollinger day chart** to judge the trend 2 4-hour chart, draw the trend and resistance level, and finally use kd macd ** to find the entry and exit points, and set a stop loss with the resistance level drawn in advance.

Start by keeping an eye on a currency and watch the trend every day.