What is forex market analysis? Some effective methods of forex analysis

Forex market analysis is Selective combination of fundamental technical or emotional methods that investors have the most complete view of when investing in currencies. Specifically, here is an overview of the market situation and related issues. The analytical method used must first suit each person's trading style. Therefore, market analysis What is forex?? How to do Forex analysis more effectively? Let's find out with kiemtien.com here.

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What is Forex Market Analysis?
What is Forex Market Analysis?

Market volatility is caused by two sources of supply and demand. They are the common denominator of all economic, political, social, scientific, cosmic and even market events. Any market present on the planet depends on them. They have a huge influence on uptrends and downtrends along with the open positions they hold. Some of them can be highly accurate, but they almost always lag behind price. Others, like the economic theories used in Forex fundamental analysis, will not be highly accurate. By shifting the psychology of the forex market structure up and down at different times, traders can create the very market they are analyzing, only to change it again when they open a new trade. As a trader, you need to know that only through the best Forex supply and demand analysis can you gain a competitive edge over other traders.

Forex market analysis methods

There are many ways to analyze the market at a reputable forex broker. However, it is necessary to understand a simple trading method and apply it proficiently. Doing so will help you get better opportunities.

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How to analyze the Forex marketHow to analyze the Forex market
How to analyze the Forex market

fundamental analysis

Major political events or changes in the economy always have a direct impact on the demand for each country's currency. It is understandable that a currency is doing well in the present moment, but not necessarily doing well in the future. Because it is always influenced by other factors. The difficulty of fundamental analysis is the evaluation of the factors that affect the supply and demand index. You need to understand why any event like the Covid-19 epidemic, war etc. affects the economy and monetary policies. The more prosperous and promising a country's economy, the more valuable that country's currency is. Then, it will attract investors from abroad to access that country's economy. From there, they need to buy the currency of the country they invest in to spend on assets.

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Technical analysis

Technical analysis is a process that plays a very important role in Forex investing. It not only helps investors find entry and exit points in the market, but it also improves profits. It also helps to research many other markets such as cryptocurrencies.

The Forex market has 3 directions: Up, down and sideways (sideways). To succeed in technical analysis, you need to choose for yourself the right tools that you have good access to. Or if you work as a team, maybe each person is proficient in a specific tool. These are then combined so that bad signals can be filtered out and trends identified to identify better trading opportunities. Over time, the analysis will become more professional if you know how to be selective.

View more: What is Forex technical analysis? The role of technical analysis in Forex trading

Forex market sentiment analysis

Based on the vision, they make the decision to place a buy or sell order. Ultimately, the direction the market takes will be based on the common opinion of all market participants. Here's an example: As a retail merchant. If you have a strong feeling that a negotiation is going one way or another. You alone cannot make the forex market move in your favor. Don't misunderstand that emotional forex market analysis will help you find specific entry and exit points. But only through this analysis you decide whether to follow this trend or not. Anyone participating in the Forex market needs to do sentiment analysis. It is up to each one to assess whether the market is rising or falling, and whether to follow it or not.

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Dow theory

In fact, the Dow theory has no unified documents or books, but this is actually Mr. Charles H.Dow, which was formed by analysts synthesized from his statements and articles. Other theories later developed based on the Dow theory. Technical analysis is one of the schools that inherit and develop on the basis of Dow theory. This makes technical analysis more solid, easy to understand, simple and practical.
Although Charles H.Dow was the founder, the person who organized and developed the Dow theory almost as it is today was Halminton with “The Stock Market Barometer” published in 1922. By 1932, Robert Rhea had completed the work. improved these theories and published "Dow Theory". This is the Dow theory that investors use today.

View more: What is the Dow Theory? Principles of technical analysis


Above is an introductory article on Forex market analysis and some of the most effective Forex market analysis methods today. I hope the article can help you understand that Forex trading takes a lot of time and skill. So, if you want to participate in the market, you should carefully study and learn more about Forex Signals in order to receive the best free Forex signals.