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The Main Forex Reasons for Trading

Forex Trading

There are three main reasons elements moving the forex market. All factors affecting the trading are based on one of the three main analyses. The analyses are following:

I. Technical Analyses (Technical Reason)
II. Fundamental Analyses (Fundamental Reasons)
III. Geopolitical Analyses (Geopolitical Reasons)

And the three main analyses are useful and all have their own affection over the market movements. Very often almost all the time when the trading is active all these analyses have to combine to receive one total picture of the market. All analyses have influence one to other and among them. But there are some specific moments, where based on only one analysis you could exact forecast on the market.

The big question is fundamental or technical and what strategy to use you probably will find in the network that the fundamental data is better to use for longer time analysis more than 6 months. While the technical analyses are better to use for short time analyses even minutes to 6 months maximum to one-year time.

Yes, the technical data is better to use for trading for short time but is better to use the combination of the technical and fundamental analyses. Also with the combination of the geopolitical analyses, the trading will be the most successive.

All three main analyses have all the time affection over the market trading in a short time usually from 1 to 5 hours. Not always this strategy is correct. Often on the market when coming, for example, good and better than expected data for US Economy for example the dollar instead of to moving higher, the dollar lost. The fundamental analyses always are actual but before the data stay known.

On the forex market, there are always many trades with many different strategies for trading. All have different views and interests about trading. The banks and big forex companies trade with billions every day. They have the force to move the market from one to another side. No one could go against such massive trading which is like an intervention.

The technical reasons on the market are one of the strongest reasons to trade in some direction. They are always valid on the market and continue to have market affection even and after big news coming from fundamental or geopolitical reasons.

The affection of the geopolitical and fundamental factors has a short time effect on the daily traders. While the fundamental factors have a big reaction on the market before to be realized the reaction after the news comes is sometimes quite confusing. In the sector Fundamental factors, we will talk much about the main based how to make profit by the fundamental factors.

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