What is the fundamental analysis in Forex

What is the fundamental analysis in Forex

Lesson 42 of the course of Forex education We will address a simple explanation of what is the basic analysis in Forex and should be taken care of next to technical analysis or not care about it and what it means

We mentioned earlier that in order to understand the price movement we must study two types of analysis, the first of which is the technical analysis and the second is the fundamental analysis

We also mentioned in the last lesson a simplified explanation before going deeper into technical analysis and we will also explain in a simplified way in this basic analysis lesson

Definition of the basic analysis: is the study of the price movement based on the news and economic factors affecting the movement of price through important economic data that affect the state or affect the group of countries and know what news or economic events that once the decline or announcement of the difference will occur in the price movement

The timing of the news is very important. At the time of the strong news, the fundamental analysis on the technical is better because you will find the price movement is very fast whether it is bullish or bearish.

Because it is known that the strong news that affect the movement of price should be paid attention to

So if you are not a professional in basic analysis just enough to know that you should stop trading in the news time because you will be exposed to a great loss

Now go to the next lesson in the Forex course

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What is the meaning of the trend in Forex

We will explain what is the trend and what is the hypothesis that is imposed to define the tendency of the price or what is called the desire and we would like to point out that you should read the previous lessons of the course of Forex education in order to be able to follow the current session

The hypothesis on which the trend was used

Is that the price always has a tendency either to move in a bullish direction or to move in a bearish direction

The movement of the price when you see it for the first time will come to mind that it is a random movement, but in contrast the price action is a movement that has a trend that tends to go up or down

In fact, if you only know the price is going to follow the chart and know that the price of the EURUSD tends to rise

Then you will always enter into a buying position that is in line with the trend and if you reverse the price you have a little bit of a drop, then you will not be afraid because the general trend is the upside and therefore the price will return again and vice versa if the bearish trend will enter the sale

For example, if the price rises

You will find that the price will climb and then drop a little and then climb again and then drop a little and so you will find in the total price rises and here we say that the price in the upward trend up trend and vice versa