Forex encyclopedia

Usually traders use two types of analysis in Forex – technical and fundamental. The first one involves chart analysis with application of mathematical methods and principles. Fundamental Analysis in Forex implies monitoring of political and economic indicators as well as monetary policy of countries. The main difference between the methods is the approach to the creation of price on the chart. Traders who prefer technical analysis think that it is enough to analyse the actual prices, because this data already includes all indications and reasons of change. However, followers of fundamental approach state that prices depend on fundamental factors and mark relationship between demand and supply. Thus, using technical approach traders analyse prices and relying on fundamental approach they deal with analysis of the trading instrument. Fundamental analysis in Forex examines political, economic, macro- and micro indicators not only for individual countries, but for global environment also.
Popular article: Wolfe Waves Indicator
Wolfe Waves – one of the numerous methods for market analysis. The method based on Wolfe Waves does not imply indicator, it uses wave analysis. An author of strategy is a professional trader and analyst Bill Wolfe. The difference of analysis based on Wolfe Waves from Elliot Wave Theory is that analysis is made on the spot, because marking is not required on high or low time-frames.
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Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
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