It is one of the most simple and effective ways to analyze the market

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As a result of the expectation of higher interest rates and increased inflation, investors buy to benefit from the potential rise in the currency price. 3. GDP: GDP is a measure of all the goods and services produced during a specific period of time. It is the best factor that can reflect the state of the economy in any country, as it is the measure of the goods and services that have been produced and the cost of being manufactured by a country.

Therefore, an increase in it reflects the expansion of economic activity, and a decrease Phone Number Data in it reflects the possibility of an economic recession occurring soon, and thus traders begin to retreat from that currency. 4. Unemployment rates: The three indicators we mentioned previously are the basic indicators that are relied upon in Forex fundamental analysis. But high unemployment rates also have a significant negative impact on the economy, as the greater the number of unemployed residents, the greater consumption increases significantly and the more people depend on government aid. Conversely, the decrease in unemployment rates reflects the exchange of goods and currencies of that country and the improvement of its economy significantly.



Technical analysis is a system of predicting the direction of prices in the future by studying historical market data and following its prices in different time frames. And therefore it is very useful in learning Forex. Unlike fundamental analysis, which involves using a lot of data related to Forex news and economic factors, technical analysis only requires some numbers on the chart to make the right decision. Technical analysts rely on three basic principles in analyzing market data: 1. Price movement includes everything: This principle boils down to the fact that any factor that affects the market movement, whether political or economic, is ultimately reflected in the price. Therefore, following the price only does away with the rest of the other variables, which do not necessarily have an effect in the first place.