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: Forex Entry Strategy
Entry opportunity is the time when a trader can open a position and has a higher probability to gain profit. Mostly, entry opportunities are considered only when a signal is formed. But, for every signal, there are more opportunities than just one. In short, as long as the highest or lowest point of the day isn't reached yet, you also have opportunities to open a position as many times as they are available. But how to calculate entry opportunities at a certain time? Let's use a pair with average daily range 100.0 pips, and price range between 0.00001 to 0.01000. Thus, a strategy with expected profit target of 30.0 will be: average daily range – expected profit = 100.0 – 30.0 = 70.0
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