Breaking News
You are here: Home » Tools » Foreign Exchange Sydney How To Analyse Your Trades

Foreign Exchange Sydney How To Analyse Your Trades

Foreign Exchange Sydney

Using fundamental and technical analysis can help you successfully trade foreign exchange Sydney. Fundamental analysis helps you see the “big picture”, either at a national or international level. For AUD traders, this means not only knowing how Australia’s future export picture is shaping up, but also whether or not China will actually succeed in creating a more consumer-oriented economy. Technical analysis, on the other hand, is a more “here and now” type of thing. Through the use of mathematics, it helps you see trends, momentum and over-priced (or under-priced) situations. It can even help you decide when to enter or exit a trade. Obviously, anyone that learns both well has a distinct advantage over all traders who only know one area of analysis – a very good reason to never stop learning.
“Channel” or “bands” indicators on daily and weekly charts can assist you in seeing major trends. They are based on some elemental mathematics, but when traded wisely, can produce superior results. “Bollinger Bands®”, in particular, are quite popular.

Types Of Analysis For Foreign Exchange Sydney

Day traders look at the foreign exchange Sydney market differently than swing or trend-traders. Day traders are concerned with “now” (being defined as maybe as long as a morning or an afternoon), so their focus is on any event that could happen in the next 4 hours – be it a speech, an announcement or a holiday. They use moving averages and oscillators to help time their trades and little else. Longer-term traders, on the other hand, may use moving averages and oscillators, but they’re also concerned with fundamentals (like surprises in international trade flows). As a result, they tend to be fans of “channel” or “band” mean reversion indicators, like “Bollinger Bands®”. Such indicators give them a sense of proportion and relative pricing.

Using Fundamental Analysis For Foreign Exchange Sydney

Fundamental analysis is concerned with economics. At the macro-level, this means that traders are all ears when a report concerning “GDP” (“Gross Domestic Product”) or international trade flows is about to be announced. At the micro-level, any “surprise” in either a monthly manufacturing utilization, unemployment or inflation rate can send the market into a tizzy. “Surprising” speeches by key officials (like Governor Stevens of the Reserve Bank) can also have the same effect. In the case of Australia, what China’s economy is up to is also important. If you want to trade the AUD/USD, you have to do so with one eye on China’s electrical usage rates (which tell you how fast its industrial base is – or is not – growing).

Using Technical Analysis For Foreign Exchange Sydney

Technical analysis is the art of using numbers to help you see what’s happening and any trends that might be developing. Essentially, there are 3 groups of indicators that can assist you in timing your trades. First, there are various moving averages which indicate short, medium or long-term trends. Then, you have “oscillators” (like the popular “MACD”, “Moving Average Convergence-Divergence”, or “RSI” – “Relative Strength Index”) which are trend-following indicators that can help you gauge the degree of momentum that’s going on. They can be used for short- or medium-term trading situations. Finally, you have “channel” or “bands” indicators that assist you seeing oversold or overbought situations, like “Bollinger Bands®”. This last grouping is best used on daily or weekly charts.

 

 

Self-Education-Fortune


Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis
  • Get FULL ACCESS
Become a forex trader!

Scroll To Top
Free PDF and UNLOCK website features