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How to combine fundamental and data analysis to determine the trend of the exchange rate when speculating in foreign exchange


The difficulty of speculation cashbackforexpipcalculator foreign cashbackforexprofitcalculator, one forexcashbackprofitcalculator to distinguish the cashback forex is long, short or consolidation pattern, the second is to overcome the human weaknesses of counter-market operations, for this reason both to accumulate experience to increase awareness, but also to the fundamentals of the technical aspects of diligent research cashback forex profit calculator judgment, there is no shortcut to take about how to combine the fundamentals of speculation in foreign exchange and technical charts to determine the trend of the exchange rate have the following points of attention: 6.1 Let the trend do your friends in the floating exchange rate system In the foreign exchange market, the consolidation market accounts for about 70%-80% of the annual trading day, the remaining 20%-30% is long or short quotes have a consolidation market, investors should first distinguish the range of consolidation, and then sell in the upper range, the lower range to buy, that is, the so-called low buy high sell, in order to obtain profits, and The risk is not too great, investors who can rationally implement the stop-loss strategy, and even increase the amount of investment to obtain greater profits but most people in the market still want to grasp the timely 20%-30% of the long or short market, the main reason for homeopathic operation is that the profits of homeopathic operation is very substantial, and the number of stop-losses and low, so the additional cost is greatly reduced not to mention that homeopathic operators are only implementers Not the inventor, only in accordance with the existing market trends can be bought and sold, is to know the type of line are easy, so the market that the trend is your friend (Trendisyourfriend) investors in the foreign exchange market operations, whether it is the buyer or seller, the basic premise should be the subject of investment in the future price predictions, and then according to its predictions to decide the investment strategy and operation direction For example, when investors are optimistic about the dollar against the yen, that investors believe that the dollar will go long market pattern, and the yen relatively short pattern, so should buy the dollar, sell the yen, that is, stand in the dollars side of the yens short side if this prediction is correct, the investor will be able to profit 6.2 master foreign exchange market data analysis fundamentals fundamental analysts believe that the strength of the currency reflects the countrys economic conditions, good or bad, its Although the strength may be disturbed by other non-economic factors and have temporary fluctuations, or produce the opposite of the economy, but in the long run, its price will eventually return to the point commensurate with the economic situation as to how good or bad a countrys economic situation should be measured, it is necessary to take a relative comparison approach for example, the United States in 1996, the economic growth rate is estimated to be up to 3%, in the eyes of fundamental analysts, this For example, the U.S. economy is estimated to have grown at 3% in 1996, but in the eyes of fundamental analysts, this figure does not tell whether the dollar should strengthen or weaken. The dollar should be relatively stronger against the mark or the yen to reflect its economic strength. The fundamental analysts use this as an indicator for foreign exchange trading decisions, buying the dollar and selling the yen and euro to reflect an economic situation, i.e., what is generally known as economic indicators, in addition to the economic growth rate, there are many, including the trade deficit, the budget deficit, the money supply, the consumer price index, and the consumer price index. Money supply, consumer price index (retail price index), producer price index (wholesale price index), unemployment rate, housing construction rate, leading indicators, etc. as the focus of fundamental analysts betting, the data will be published by the relevant government departments on a regular basis, this type of investors will collect and analyze the data, further analysis and comparison, as a basis for determining the future trend of each tendency of such analysis and prediction Is it correct? How effective is it? They set up economic research departments to analyze the economic situation of major countries, and in the United States and other government agencies to publish important economic indicators, investors in the market will first close the foreign exchange parts or reduce the foreign exchange parts, the foreign exchange market is like the atmosphere of the enemy, bank traders are waiting all night from the economic indicators published after the life of the crowd, you can see that fundamental analysis in the foreign exchange market is indeed After the publication of economic indicators, the currency trend by its influence, the strong may be stronger, may also turn weak; weak may be weaker, or turn strong, in showing the economic indicators for the market driver (Marketmover) the real picture, so influential factors, how can participate in foreign exchange investors ignore it? So regardless of the correctness of fundamental analysis to predict the future trend of the currency market, for a long time, fundamental analysis has become the magic weapon for market participants to make investment decisions 6.3 Fundamental analysis is suitable for predicting the medium and long-term trend of the exchange rate Fundamental analysis to predict the medium and long-term trend of the currency, such as the next 6 months, 1 year or 2 years is still appropriate, but since the abolition of the gold standard, the international prevailing floating exchange rate system, other than the fundamentals The factors that will more or less affect the currency price speculators every second in the international market to buy and sell, a large amount of buying and selling, but also affect the foreign exchange market (foreign exchange fundamental analysis  www.waihuibang.com/fxschool/fundamental/) and the entire international community is increasingly open, like a global village. The freedom of international funds in and out of countries is increasing international payment systems such as the United States of Americas CHIPS, the United Kingdoms CHAPS system, have made the transfer of funds to speed up, and even in an instant to complete the international funds are like long wings, hot money should be born, not only to affect the monetary policy of countries, more often distort the fundamentals should reflect the reasonable price of the currency, resulting in a brief failure of fundamental analysis, so foreign exchange Investors have gradually amended the use of fundamental, in addition to it as a medium and long-term trend forecast tools, but also with technical analysis of the information, according to make investment decisions fundamental analysis of foreign exchange movements has a long history, textbooks mentioned in the purchasing power parity, is an obvious example of purchasing power parity said the basic theory that the relationship between the price of national currencies and countries with equal amounts of money to buy a certain number of goods For example, to buy an egg in the United States, Japan, and Germany, it costs $1, 100 yen, and 1.5 marks, so it follows that $1, 100 yen, and 1.5 marks have the same purchasing power, and therefore the inter-currency price should be $1 equals 100 yen equals 1.5 marks. For example, according to the information provided by the economic research department of Merrill Lynch, in April 1996, compared to the purchasing power of the U.S. dollar, the currencies that were overvalued were the yen, the mark, the Swiss franc, and the New Zealand dollar, with overvaluation rates of Nowadays, the foreign exchange market has been out of the era of fixed exchange rates for a long time, so all kinds of political and economic news, small rumors and hearsay are enough to shake the market, and it is obvious that it is too simple to deduce the price of currency by purchasing power parity. Investors can only use this theory to deduce the price of the currency as a reference