Here is the basis of political and economic changes, because these two factors often affect currency prices. Traders rely on such analysis gather information about unemployment predicted from the news media, political ideologies, economic policies, inflation and growth information. Most traders will combine a variety of foreign exchange strategy information to draw the actual entry and exit points, and carefully verify the obtained.

Like most markets, the foreign exchange market is controlled by supply and demand. These two markets are critical factors are interest rates and economic power, which is affected by changes in GDP, the impact of trade balance and foreign investment amount.

Weekly or monthly, government and academic institutions, many of the indicators will be released. The most important and biggest concern indicators that are: interest rates, international trade, CPI (consumer price index), durable goods orders, PPI (producer price), PMI (purchasing managers index) and retail orders. These indicators are relatively healthy level of economic and reliable measurement data, all rely on fundamental analysis of its traders are closely in developing their forex trading strategies.

Interest rate can enhance or weaken the currency. In some cases, high interest rates to attract foreign capital, however, the high interest rates often cause stock market investors to sell all of its stock portfolio, because they think that will increase the cost of borrowing funds adversely affect many companies. If a sufficient number of investors to sell all their holdings, which could cause the market turned down and a negative impact on the economy. Which final result will occur depends on many complex factors. Economic observers are usually changes in interest rates affect the current macroeconomic and monetary price unanimous.

International trade. If there is a trade deficit, which is usually seen as a negative indicator, because the country is greater than the outflow of money flowing into the country's currency. This also leads to currency devaluation, but generally included in the trade imbalance market consideration. If the trade deficit with countries operating under normal conditions, the price of money should not be affected; only the deficit will be greater than expected impact.

Consumer Price Index (CPI) and producer price index (PPI) is also an important indicator. It should also be concerned about the GDP (Gross Domestic Product) and broad money supply, which measures the total amount of the national currency. Alone, 28 major indicators have a strong impact on financial markets in the United States, should pay close attention. You can find this information on the Internet, many brokerage firms also provide such information. With this information you can develop your own forex trading strategy.

Price chart can be simple line charts, column charts, or candlestick charts. These figures show price movements during the specified time interval, the time interval can be minutes to years.

Line chart of the most easy to read, providing a broad perspective of price changes. This figure shows only the price of the end of the specified interval, it is easy to see patterns and trends.

Through histograms, line length is displayed in the time interval of price distribution. Column larger the difference in the interval between the high and low price becomes. It is easy to be able to see prices rising or decreased, because the left and right side of the bar shows the starting price bar shows the end price. Chu then these columns to convey information about price changes. Printed histogram may be difficult to read, but most software charts have a zoom feature, so you can easily see in the development of your own Forex trading strategy details for reference.

Candlestick charts are similar to bar chart - two kinds of diagrams show the specified time interval, high, low, starting price and ending price. This diagram from originally developed in Japan for analyzing candlestick contracts, but at the same time the analysis of this diagram useful exchange price, therefore become forex trading strategy to facilitate the development of the "Tools." Color code makes it easier to read this chart, green candlestick indicates rising prices and red candlesticks indicate falling prices.

If you compare the shape of the candlesticks with other candlesticks around, it reveals a lot messages of the price changes, for your analysis helpful. According to price distribution, candlesticks can form various stereotype. Many of these shapes have exotic names, but once you learn the set, you develop your own forex trading strategy will be very easy to find, analyze and use the present situation.

Usually do not use a separate price chart. For complete results, you need to diagram these prices combined with some technical indicators: trend, strength, stability and prosperity without cycle index (cycle indicator). The most commonly used indicators are:

• Average Directional Movement Index (ADX) help states that the market is moving how strong the trend direction and trend. If one kind of trend readings over 25, then I think this trend is a strong trend. It is your effective "tool" in the development of your policy when foreign exchange movements.
• Moving Average Convergence Divergence (MACD) is displayed between the moving average line relationships, so that you can determine the market's momentum. Once any MACD signal line intersect, namely that the current market is a strong market.
• Stochastic Oscillatorthe end of the price for a specific period of time and the price changes range period of time compared to determine if the market is strong or weak. If the randomness of money greater than 80, so that the currency is overbought condition; if the randomness of less than 20, so that the money is to sell state.
• Relative Strength Index (RSI) is the value of 1-100 less value, since its relatively high prices and low prices for some time. If the RSI is higher than 70 is considered to be overbought; less than 30 believed to be selling state.
• Moving average is the average price of a period of time and other time the average price after comparing segment generated.

You can use these indicators to develop successful forex trading strategies.