Forex analysis — covering all aspects of forex market analysis

In this section we will handle the subject of forex analysis in much greater detail, with the hope of providing you a framework with which you can create your own approach and style of analysis.

We will attempt to provide general principles to be adhered to while performing the two types of analysis — fundamental and technical — and then we will look at the indicators and news releases in detail. The golden rule is that the trader should always aim to create a holistic picture from the patchwork of data that he has to go through on a daily basis. He should create models, and test them in light of market developments and the fundamental changes occurring in the analyzed nation’s economy. A mere knowledge of the data, without the power to evaluate and reconstruct it to suit our purpose, is unlikely to be very beneficial. The successful trader succeeds because he understands, while the unfortunate one fails because his attention span is too short to evaluate the information.

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