Real-time forex analytics implies two main areas today: fundamental and technical analysis, which, in turn, have a certain number of subsets. It has already become either a science or an art about which legends go. As with everything that helps to earn significant sums of money. Perhaps, it is a fundamental analysis of the forex market that is the most complex type that predicts currency movements. However, at the same time and the most necessary. Each novice trader in the form of the basis for his own system can choose any of the types of analysis, or their combination, be it a candlestick forex analysis, wave, fractal, or something else. But regardless of the prevalence of any method, knowledge of the basics of fundamental analysis is simply necessary to trade successfully.
Consider all the basic nuances of fundamental analysis, without which real-time forex analytics is simply not possible. Of course, for a detailed study, you will need special literature and a considerable amount of time and effort spent. Let's try at least superficially.
Each movement in the market is a reflection of the state of the economy of the state or the region. The moves to the directions of foreign exchange movements, as well as trading are set by the news. From these moves, the main components can be distinguished:
1) Macroeconomic statistics. The macroeconomic indicators that are published are becoming the most important factor affecting changes in exchange rates. Such indicators indicate to everyone at what stages at a given moment the state economy is located. Moreover, knowledge of fundamental analysis helps to predict the future development of the economy, and subsequently determine the rates of national currencies;
2) Speeches by the heads of Central banks and states, which necessarily cause spikes in the graphs of changes in foreign exchange rates. Because the decisions of such people have a direct impact on state and economic policies. Such statements are usually quite restrained. However, traders often manage to catch the necessary thread and respond to it. For example, when the head of the central bank of Europe said that “they” would be extremely vigilant, traders immediately regarded this as a hint of an early increase in interest rates, which leads to an increase in the euro;
3) Forex analytics in real time should take into account a variety of unforeseen situations. They can be natural disasters: floods, earthquakes and the like. All this affects the exchange rates. The books have not yet written how the investor reacts to incidents. Traders independently try to analyze possible development options, while relying on their experience and knowledge.
In such cases, even professionals sometimes do not come to a consensus. Therefore, some traders are negative about the type of analysis under discussion, believing that it is of little use;
4) Different expectations of the foreign exchange market. There is even a saying such as “buy rumors and then sell facts.” The rumors should include market expectations regarding some upcoming news, and the news itself to the facts. In the market, expectations are laid in the current price, and therefore often it is not a macroeconomic indicator that matters, but the difference of this indicator with the values that are expected. Forex analytics in real time and manifests itself in this.
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