On the Internet today there is many various sites that provide various kinds of information that, one way or another, refers to trading in forex. There are a lot of sites, there are even more analytical articles and a fair question arises: is it possible to trust such sites, and if so, how to choose the necessary and useful resource?
The essence of the most accurate forecasts
You can easily find wonderful analytical reviews on the Internet, but you can evaluate their quality and usefulness in several ways:
From experience, while feeling the consequences of decisions made on the basis of information obtained.
By tracking in advance the number of forecasts made by the authors of the articles.
Look for analytics from sources that have been verified over the years.
Types of analytics
However, first, let us understand what types of analytics are divided into and how they differ from each other. Two basic types of analysis are used in currency market analysis: fundamental and technical. These two types of analysis can be found at any broker, but today we will consider the international financial company AMarkets for example.
Fundamental analysis is the most difficult one. This type of analysis takes into account the political sentiment in countries; compares the state of a particular country's economy with other economies; takes into account monetary policy; global state of world financial, commodity and stock markets. The basis for fundamental analysis are macroeconomic indicators that assess the state of the commodity market, securities market, currencies, labor and GDP, as well as various business indicators that show the state of sectors and economies of major countries. This type of analysis is necessary for forecasting the turn of the entire market in a certain direction.
It is not easier than the fundamental analysis of technical. It is based on studying the chart and finding regularities of price movement.
Types of technical analysis:
Graphical (where trend lines and channels, support and resistance levels are applied);
analytical (based on filtering and mathematical approximation of time series using forex technical indicators).
Technical analysis is indispensable in order to predict entry points to the market.
At present, many dealing centers, including AMarkets (site), make forecasts themselves, which is undoubtedly pleasing, as a trader has an opportunity to get into the essence of the market situation and make more reasonable decisions without wasting much time on collecting the necessary information. However, it is necessary that the analysis contains not only price statistics, but also useful recommendations on orders: how to open and close positions, how to determine the right moment to enter the market and how not to miss the exit from the deal. It is necessary that the forecasts have both short-term and long-term character.
There are 4 components with the help of which you can predict the dynamics of this or that trading instrument: fundamental and technical analysis, wave and complex forecasts. The mutual work of these 4 elements can give a forecast that will increase the chances of successful trading and gaining profit.
Thanks to the forecasts prepared by analysts, the chance to close a trade with profit increases, while reducing the possible risks. Forex brokers on their websites update the forecasts every day, so it is advisable to review them more often and draw conclusions for yourself. However, it is not reasonable to rely only on advice, it is necessary to clearly weigh all the available information and correctly transfer it to your trading strategy, so the trader can ensure a profitable trade.
Free and paid forecasts
There are companies on the market that specialize in creating signals. Often, you can also find forex brokers who issue such signals, although they are not available to all traders, and often are only provided to VIP-clients.
Such information can be obtained by mailing or sms message. The support service of some companies calls their clients, providing personal details of the transaction. These alerts contain precise instructions and tips for opening, modifying and closing orders. For example, the premium analytics of AMarkets is sent to clients who have made a deposit of $1000 or more, and the analytics is essentially free.
You will ask: what then is included in the free forecasts? The information, which is provided free of charge, is often very different from the paid information. Most often the free forecast is general in nature and there are no clear instructions how and when to open and close transactions. Basically, such forecasts contain information about the probable directions of currency movements or the expected price range. But you should not underestimate this information.