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 close a long position in forex?

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  4. Where did the term 'pip' in currency exchange come from?

    The term pip is an acronym for percentage in point or price interest point. It measures a unit of change within a pair of ... Read Full Answer >>
  5. How do changes in national interest rates affect a currency's value and exchange ...

    All other factors being equal, higher interest rates in a country increase the value of that country's currency relative ... Read Full Answer >>
  6. 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 >>
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