Analysis page 2

To benefit from price fluctuations on forex, you need to be able to research the market. Understand where the price is going, and based on that, decide whether to enter the game or wait for more favorable conditions. That's what all traders do, not just on forex. A farmer who sells milk knows that if he goes to the market on a sunny Sunday afternoon, he will sell more, and at a better price than on a rainy Monday. He knows that good weather and a day off are two factors that will increase the demand for his product because there will be more people in the market.

The Moving Average is undoubtedly one of the most popular indicators. However, its wide popularity is not based on nothing. It is a simple but at the same time a powerful trend indicator. It clearly shows which way the price is trending, how clear the trend is, and when the reversal occurs. Today we will look at how to set up the Moving Average, how to use it, and what strategies can be implemented using this indicator.

The forex market is a rather complex and difficult to predict financial institution. The movement of currency pairs depends on a whole range of economic, political, and social factors. Their close interaction and complex influence on the market are often difficult to predict, especially the strength and direction of their impact on the price dynamics of a particular currency pair.

Investors and traders use various methods to predict the price movements of stocks, currencies, and other instruments. Technical analysis tools have become the most common. They use mathematical algorithms to calculate the patterns of changes in quotes and draw conclusions about further developments with a certain degree of probability. The other approach - the fundamental analysis - although complicated, is considered by many investors to be more effective. A beginner in the market should know at least its general provisions.