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Sunday, October 5, 2008

FORCES THAT DETERMINES MARKET MOVEMENT

There are two forces that moves market price. The TECHNICAL AND FUNDAMENTAL ANALYSIS.
With the Technical Analysis a trader studies the past movements to predict the future price of a currency pair. Therefore Technical Analysis reflects the behavior and pulse of the entire marketplace.
While the Fundamental Analysis are those things that make a country tick, the release of economic news like the social and the political happenings in a country. When Fundamental data is made public there are always reactions from investors and speculators because the release of these economic indicators "could" cause a currency to rise in price or "might" cause the currency price to fall. The words 'could' and 'might' indicated the double-entendre or better still the parisology of the Fundamental data.
Hence I will recommend the use of both the technical and fundamental indicators for a better forex trading.

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