There are four main types of forex analysis used in foreign exchange forecasting:
- Fundamental. It sees economic basics, economic indicators and financial and political factors.
- Technical. It studies the different types of charts, trends, patterns, gaps and mathematical indicators.
- Fibonacci. It gives ratios which play an important role in the forecasting of market movements.
- Elliott Wave Principle. It studies the market behavior according to certain patterns.
As you can see, each of them plays a very important role in the decision-making process before a currency trading transaction.
They are not hard to understand and they are fascinating, especially the fundamental analysis: you have new information every day and it makes it easier to read the other three types of analysis and make more accurate trading decisions.
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