{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/forexschoolonline.com\/types-of-forex-analysis\/#BlogPosting","mainEntityOfPage":"https:\/\/forexschoolonline.com\/types-of-forex-analysis\/","headline":"Types of Forex Trading Analysis","name":"Types of Forex Trading Analysis","description":"Types of Forex Trading Analysis There are many different ways to analyse the Forex markets to make trades. Whilst some people will be drawn to one over the other there is no one \u201choly grail\u201d that will make you rich overnight. Many people come to Forex believing that it is a get rich quick scheme. […]","datePublished":"2012-11-26","dateModified":"2018-11-21","author":{"@type":"Person","@id":"https:\/\/forexschoolonline.com\/author\/jonfox\/#Person","name":"Johnathon Fox","url":"https:\/\/forexschoolonline.com\/author\/jonfox\/","identifier":1,"description":"Johnathon is a Forex and Futures trader with over ten years trading experience who also acts as a mentor and coach to thousands and has written for some of the biggest finance and trading sites in the world.","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/d0b589a007c132efe23124c05a02b68524844c0089401129bd50bc12ee59d3a9?s=96&d=monsterid&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/d0b589a007c132efe23124c05a02b68524844c0089401129bd50bc12ee59d3a9?s=96&d=monsterid&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Forex School Online","logo":{"@type":"ImageObject","@id":"https:\/\/www.forexschoolonline.com\/\/wp-content\/uploads\/2018\/09\/FSO-Transparent-logo-gr.png","url":"https:\/\/www.forexschoolonline.com\/\/wp-content\/uploads\/2018\/09\/FSO-Transparent-logo-gr.png","width":240,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/forexschoolonline.com\/wp-content\/uploads\/2012\/11\/business-1031754_1920.jpg","url":"https:\/\/forexschoolonline.com\/wp-content\/uploads\/2012\/11\/business-1031754_1920.jpg","height":1271,"width":1920},"url":"https:\/\/forexschoolonline.com\/types-of-forex-analysis\/","about":["Beginner Trading Lessons"],"wordCount":984,"articleBody":"Types of Forex Trading AnalysisThere are many different ways to analyse the Forex markets to make trades.Whilst some people will be drawn to one over the other there is no one \u201choly grail\u201d that will make you rich overnight. Many people come to Forex believing that it is a get rich quick scheme. Forex is\u00a0NOT\u00a0a get rich quick scheme and people who treat it as such will fail.Forex is a business and only the people who treat it as a business, and are serious about their trading will have success. If you are looking to get rich quickly, I advise you to go to the casino or somewhere else to gamble. If you are serious about trading Forex, and you want to treat trading like a business, you have come to the right place!Whilst there is no one right way to make money in Forex market, there are easier methods than others. Over the years the one thing that has stuck out to me is how hard and complicated traders try to make trading.Quite often traders who are struggling believe they are struggling because they are missing something, or are not looking far enough into it. This is quite often the exact opposite. The more traders complicate things, normally the worse their results will be.\u00a0The best trading methods in the world are both logical and simple.To understand what methods are the best to trade Forex, you have to understand what other methods and systems others are using. Below you will find the most commonly used trading methods used throughout the world. \u00a0 Fundamental TradingFundamental analysis is all about taking the current status of each country\u2019s economic balance sheets and trying to find currency pairs that are cheap or expensive. A trader who uses fundamentals will also rely heavily on news announcement to guide them in their trading.The major problem with trading with the news and fundamentals is the price of a currency pair rarely if ever reacts to which way the news announcement went or the fundamentals.The reason for this is traders are buying and selling everyday on what they think will happen. By the time the news is released, the currency prices have already had this news release factored into them.This is what many refer to as \u201cbuy the rumor and sell the fact\u201d. All this means is by the time the news is released the currency in question has already had the announcement factored into the price and will often move the opposite way to what would be expected.\u00a0Robots\/EA\u2019sTrading with Robots and Expert Adviser (EA\u2019s) is very common with new traders. Because new traders are often on the hunt for the Holy Grail, they go looking for a robot to trade for them.All a Forex robot does is make trades by itself using certain criterion that has been inbuilt. You can buy Forex robot\u2019s or make your own.\u00a0The simple fact is Robot\u2019s and EA\u2019s rarely work and none of them do for very long. The market is constantly changing which means even if one robot is profitable now; the chances are that it won\u2019t stay that way for long.The reason that a lot of new traders use EA\u2019s and Robots to trade is that they are uneducated and fail to realise that the best\u00a0asset\u00a0they have in the markets is their mind. The human mind can adapt and change to the ever changing market dynamics which is needed to succeed.\u00a0Trading IndicatorsTrading with indicators is a very slippery slope that normally ends with confusion. Like trading robots indicators are very popular with newer traders. Indicators are what traders can place on their chart to help them in their decision process. Examples of indicators are moving averages and MACD.The reason indicators are a slippery slope is it is impossible to know when a trader has enough or too little.A common example is a trader starts with one or two indicators. They luckily make a winning trade using these indicators. The next trade they lose and they think to themselves \u201cIf two indicators helped me make a winning trade, using another one will help even more\u201d, and so the trader adds another indicator. What ends up happening is the chart becomes a mess with indicators all over it and the trader can no longer see what is happening with the price.The trader then becomes confused because they have so many indicators that will start to contradict each other. It will end with a trader suffering from \u201canalysis paralysis\u201d and a very confused trader no better off than at the start of their journey.Professional traders tend to stay away from indicators and concentrate on a simple method that focuses on price movement and key levels in the market. Technical AnalysisTraders that use technical analysis are using price charts, price patterns and sometimes indicators to help them make trading decisions. Whilst traders using fundamental analysis are using news and economic reports to make trading decisions, technical traders are only interested on what is happening on the charts.  A few common chart patterns technical traders use are:Head and ShouldersDouble top\/bottomCup and HandleRising and Sloping Trend Lines And a few common indicators use by technical traders are:Moving AveragesMACDAverage \u00a0True Range (ATR)Relative Strength Index (RSI) Within technical trading there are many different types of trading methods to be used. One of these methods is Price Action trading, which is the system of using only raw price for analysis.Price Action involves trading high probability price patterns that form regularly. More information on price action and how you can learn to trade price action can be found in later chapters. "}