Forex analytics: search and evaluation of information
What is forex analytics?
Trading on forex is based on high-quality analytics, the reliability of which you can be sure. Beginner traders always have a question where to get such information and how to work with it. There are a huge number of resources on the Internet that are positioned as providers of quality analytics and it is not an easy task to choose among them that are really useful.
There are only two types of analysis in the forex market - Fundamental and technical. Fundamental analysis is based on an assessment of the dynamics of national economies, monetary policy, global financial conditions, stockIt is a complex and often unreasonably complicated type of analysis (for daily forex trading). For everyday forex work this is a complicated and most often unreasonably complicated type of analysis (The whole truth about forex).
Technical analysis implies that everything a trader needs is price chart The trader evaluates price movements over a time interval and tries to predict future price behavior based on patterns of past price movements. To do this, the trader uses various indicators and oscillators for forex.
But not everyone can analyze information with high efficiency, it requires skills and experience, and it takes time and in this period forex trading training The trader will make mistakes and incur financial losses. Therefore, all traders use analytics provided by third-party resources. In this context, the main problem is to find reliable sources of analytical information. Analytical materials can be paid or free. Paid analytics is supplied by independent expert agencies that have no interest in supporting certain forex brokers.
The most well-known providers of paid information for the financial markets are listed in Thomson Reuters Extel's regular rankings and these teams supply analytics to brokers, who share it with clients in sufficient quantity for efficient trading, so there is not much point in buying analytics for the individual trader. Most traders use the free analytics provided by the brokers, additionally it is possible to use the analytics of traders who promote their name in the market and are interested in supplying quality information. There is also "nameless" analytics of unknown origin, of which there are a lot on the Internet and which should not be trusted.
Forex analytics resources
There are many analytical resources on the Internet that are useful for the practicing trader, let's look at some of them. Smart-lab.ru is an aggregator of blogs of practicing traders of both currency and stock marketbut the site also has an informative chat room, where you can see the current urgent information, discuss its importance with traders, there is news, comments, trading signals and so on. This is a professional resource, so newcomers to the market should be prepared for the fact that not everything will be immediately clear.
Website www.forexpf.ruwhich gathers news that can influence exchange rates and just important financial, economic, and political news. In addition, there are quotes, charts, analytics archive and so on.
Investfunds presents a significant body of information, focusing more on stock market. The site demonstrates the dynamics of the cost of shares at different stock exchanges, funds, yield leaders, stock market index indicators, investor calendar of events, exchange rates and other information for fundamental analysis. This is a fairly large-scale Internet resource with an emphasis on the stock market, but also not without due attention to global markets. There are quotes, leaders of growth and decline, a lot of forex analytics, forex forecasts, trader's blogs.
We also highlight the highly informative English-language resource, www.ino.com , which presents analytics specifically for the forex market, and also has a free subscription to analytics from the site, a variety of indexes, comments, blogs of leading traders, futures, optionsThe following are some of the most popular types of securities: derivatives, interest rates, various quotations, exotic assets, and so on.
Fxteam.ru - a popular resource of forex analytics, but not only. The site presents market reviews of reputable financial companies, market news, opinions and comments of experts on the market, separately demonstrates technical analysis, forex news and forex strategies and much more. A very large volume for the fundamental analysis of the forex market is presented on the site ru.investing.combut there is also a separate section of technical analysis, including specifically for forex. Also separately shown are experts' opinions on the forex market, and a forex widget for currency rates.
Exchange rates, stock indices, commodity prices, stock prices, economic indicators and other analytical information can be found on the website www.ereport.ru. The most useful information for fundamental analysis is economic indicators for countries around the world and the most current economic news. The following site is a useful source of analytical materials for traders Fxmag.ruThe website has blogs, broker ratings, market analysis, and a whole library of materials for traders.
Among the most advanced news resources, on the basis of which the trader can analyze market conditions himself, can be noted stock-maks.com, a site of highly specialized news about the forex, stock markets, cryptocurrencies, gold. The site also has a section forex strategies. On the site of the dealing center fxeuroclub.com there is a forex analytics section, which contains forex news, calendar of eventsThe daily analysis of the forex market, quotations and interest rates are given.
ForTrader fortrader.org is positioned as a financial magazine, you can see the exchange rate of the Central Bank, the rating of brokers, separately - forex news, the latest financial market news, separately are given forecasts of currencies, oil and gold prices, a special section devoted to forex brokers.
take-profit.org is positioned as a "Stock Portal №1", presents a really large amount of information about forex: forex analytics, rating of forex brokers, charts and trading signals online, trading advisors and indicators for forex, forex strategies, relevant news. And another large aggregator of information about forex - intrendfx.comThe site also publishes articles on economics and finance to improve our understanding of the market. And the site also publishes articles on economics and finance to improve your understanding of the marketplace.
In addition to these resources, it is worthwhile to regularly visit websites of central banks, regulatory organizations of developed countries, international and domestic ones. The information they publish can often radically change the situation on the market. Besides the above-mentioned sites, there are many other resources where you can find useful information for trading. However, for market analysis it is enough to have 1-2 proven sites in addition to your brokerage platform.
How to analyze the forex market?
With time and as the skills are developed, the trader can analyze the information himself, without waiting for the broker or a reputable trader to provide his analysis of the situation. The main parameters to be evaluated in the fundamental analysis are as follows:
- GDP, business, consumer and employment indices in the U.S. and nationally;
- Inflation, balance of payments, budget deficit, Central Bank refinancing rate, US Federal Reserve rate;
- Expectations and rumors about the market situation, often expectations and especially rumors act as self-fulfilling prophecies, for example, if there is a rumor about the fall in the price of an asset, it can work as a catalyst for lower prices, although for this real basis is not enough;
- Force majeure: natural disasters, man-made disasters, wars, coups, revolutions, crises.
Fundamental analysis requires not only a large amount of knowledge in economics and politics, but also an understanding of how world events are likely to affect the price of an asset. Technical analysis is primarily studied by novice traders, because in any case, Forex trading begins with a trading terminal, which is equipped with the tools of technical analysis.
Technical analysis is based on three postulates:
- The price of an asset takes everything into account;
- At a moment in time, the market is dominated by a certain trend.
- Situations in the market repeat themselves.
The first rule assumes that all possible influencing factors are already built into the price of the asset and there is no need to understand the reasons for certain price behavior, you just need to study the price movements on the chart. At each moment the market is in a trend - upward, downward or sideways (flat). The main task of the trader-analyst is to see the signs of continuation or change of a trend.
The fact that market situations repeat allows the trader to look for and find typical patterns on the chart, which allow predicting the price dynamics. Why the same patterns appear on the chart is not important for technical analysis. In general, technical analysis can be divided into such techniques as graphical analysis, indicator analysis, analysis candlestick chart, wave and fractal analysis.
Graphical analysis is just to keep track of the typical graphical elements on the chart - lines, channels, Fibonacci levels and others. Indicator analysis involves the use of indicators that are installed on the chart of price movements. Candlestick analysis is the same graphical analysis, but it is carried out by Japanese candlesticks and has its own features and subtleties, now this type of analysis is most often used in the forex market as the most informative.
Wave analysis is based on the theories of trader R. Elliott (fig. 3). In simple terms, the essence of the method is that the price of an asset changes cyclically; each cycle is a sequence of waves. Knowing the patterns of these cycles, it is possible to predict the price movements.
Fractal analysis assumes that price charts are reproduced at different time scales, and the shapes of the charts are similar, that is, the charts are self-similar.
In practice, the trader is not limited to fundamental analysis or only technical analysis. Even if the trader trades only on indicators, he still pays attention to current news. And even if he trades on a very long interval, eventually, he uses the tools of technical analysis in the trading terminal.