Monsters of the currency market, defining its movement is transnational companies, hedge funds and the world's largest banking organizations, controlling the giant in terms of assets. And they do not care for any patterns there. These market participants act on the basis of statements by leaders of the world's leading countries, economic and geopolitical changes in the world.
That's why professional traders use in their work integrated approach. Direction of the market is projected on the basis of macro-economic indicators, the best point of entry and exit are determined by the principles of technical analysis.
Some people believe that traders use in their work prediction based on fundamental factors prefer to take a more long-term strategy. For the most part this is true, but the work on short-term time frames with the fundamental indicators is still possible, plus it gives his fans some advantages.
The main feature of the Forex currency market as it is a reaction to the emergence of macro-economic indicators which is easily predictable and often expected nature. Plus, these data can not be faked. All are published by the leading news agencies and statistical organizations of various countries. In this case, anyone can explore calendar publishing such data.
This transparency is achieved through effective operation of the world's leading news sources like Bloomberg, Reuters and Dow Jones. In this small private traders have a significant advantage over the global giants, because they can feel much faster and react to changing market situations.
Of course, in practice it does not look so easy. Buying the good news reports and selling on bad too easy a way to make money and so it is not real. Of key importance are the expectations of the world economic community and their perception. If the economy is one of the country increased by a few percent more in relation to the other it does not mean that the exchange rate of its currency will go up. Rusty starts currency of the State, the economic growth which has exceeded the expectations of experts. This is what happens in most cases, and this is just a caveat that must be considered.
The most effective of the transaction occur in the most extreme in terms of technical analysis terms. Such situations may arise when the background of the strong dominance in the market bear or bull market comes fundamental news affecting the mood and expectations. At the moment the exchange rate can dramatically change its direction as market participants are beginning to get rid of their position or vice versa deals.
Trading must master a complex and systemic. Learn technical analysis is necessary, but it is equally important to develop and learn to analyze the importance and impact on the market fundamentals.