Forex forecast

The foreign exchange market demonstrates such unpredictable dynamics that all Expert Advisors and the best forex indicators without a competent trader's management remain useless instruments. Therefore, the task number 1 of any beginner is to learn how to make a quality forex forecast. Let's consider what options exist, and then try to choose favour of one of them.


Forex forecast1

Technical analysis

It is here that all kinds of lines, forex advisors, indicators and other auxiliary applications are used. The whole mechanics of the deal looks like this:

  1. A trader receives a signal to enter a position based on those data that demonstrate the instruments he or she uses.

  2. There is a dive into the deal. In most cases, this moment is not linked to the time and is determined by the market participant's inner instinct (his or her experience, conclusions, forecasts).

  3. Exit from the position and fixation of the result - the main focus here is to follow the rules of management when the level of potential risk is two or more times less than the expected profit.

The quality of forecasting here is influenced by trading rules, according to which the chosen method of earning functions. In this regard, profitable strategies in forex should meet the following parameters:

  1. Understandable logic based on the laws of market mechanics.

  2. At least three mutually complementary conditions, based on which a trader decides to enter a deal.

  3. Correct risk/profit ratio.

  4. High performance, which can be tested in history.

  5. Clear conditions that allow leaving a position in time.

Fundamental analysis

By this method of forecasting is meant the study of financial and foreign exchange events that can affect the dynamics of the foreign exchange market. It is the most complex and critical method of analytics. Only really competent traders can use it effectively. The main problems are related to the fact that the same events in different conditions are displayed differently in the market.


Suppose, it is necessary to make a forecast for the currency pair "Euro/Dollar" in November 2015. In this case, the trader's actions will look as follows:

  1. The initial assessment of the situation is based on data recorded in the "Economic Calendar".

  2. When suitable conditions are selected, a preliminary forecast is made about future price behaviour. The situation is aggravated by the axiom that says that it is necessary to buy assets by ear and sell them based on the facts.

  3. Related factors and circumstances that corroborate/suppose the forecast are studied. Here you need to be able to filter the information and work only with the primary data.

  4. A deal is being made. Unlike the previous method of forecasting, here the emphasis is made on short-term impulse movement, after the completion of which the exit from the open trade occurs immediately.


Forex forecast2


Mixed analysis

Here we mean the combination of these two methods. I.e., when it is necessary to make a forecast of forex for today, the trader starts to act according to the following scheme:

  • The market is predicted based on the signals of the chosen trading strategy.

  • The received signals are checked using the "Economic Calendar" and related financial information.

  • Based on the received conclusions, a trader enters the market.

Having studied the main methods of market analysis, we can safely say that the price forecasts have a better chance of execution if we combine technical and fundamental techniques. Try perhaps this information that you lacked to improve your performance. Success!