Forex Analysis

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DEFINITION of 'Forex Analysis'

An examination of the changes in the forex market that are used by a trader to determine whether to buy or sell a currency pair at any one time. Forex analysis could be technical in nature, using charting tools, or fundamental, using economic indicators and/or news-based events.

INVESTOPEDIA EXPLAINS 'Forex Analysis'

Forex analysis can be either manual or automated. A manual system involves a trader sitting at the computer screen, analyzing signals and interpreting whether to buy or sell. In automated trading analysis, the trader teaches the software what signals to look for and how to interpret them. It is thought that automated analysis takes the element of human psychology out of trading.

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  3. How do I implement a forex strategy when spotting a Upside Gap Two Crows Pattern?

    The upside gap two crows is, in theory, a bearish reversal pattern found in both the stock and forex markets. While there ... Read Full Answer >>
  4. What are the most common market indicators forex traders follow?

    There are literally hundreds of technical indicators for forex traders to choose from, however, there are a few which may ... Read Full Answer >>
  5. What is the difference between pips, points, and ticks?

    Point, tick and pip are terms used to describe price changes in the stock market and other markets. While traders and analysts ... Read Full Answer >>
  6. How do I use STIX Oscillator to create a forex trading strategy?

    The STIX oscillator can be applied to forex trading by signalling when to buy when a currency is in an oversold condition ... Read Full Answer >>
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