Overview Forex Strategies

In Forex trading is like in other markets, "out of the belly" that a strategic approach is much more promising than the action. A strategic approach can in principle be technical or fundamental nature. This is done using either the technical or fundamental analysis.

Technical analysis tries to define the quantitative relationship of price patterns and sizes to anticipate the future market development. Basis of technical considerations is always the price of the market, which should be analyzed itself Technical analysis is divided into technical analysis and market technology. In the corresponding section will describe these disciplines.

The fundamental analysis away from trying to estimate the market trend charts. Basis of the approach are fundamental economic parameters, such as growth of gross domestic product, the central bank's interest rate policy, monetary growth or inflation.

Regardless of whether fundamental or technical analysis is based on a strategic approach, this is always trying to develop a set of rules to be made based on the implications of commercial decisions. In both cases, the basic idea that should be tried to improve the risk-reward ratio of eigegangenen positions by criteria are developed to increase the hit rate.

A set of rules on the basis of data - whether these be easy courses and their indicators presented derivations, or Fundamentals of central bank and statistical authorities - created strong buy and sell signals, offers huge advantages: the "human", ie emotional component may thus be kept The trading will be eliminated. The emotional aspects often lead to losses: trade in deficit positions will be closed on time and finished profitable trades too early. A Forex trading strategy can significantly improve trading results.