In this section you will find brief descriptions of the analysis methods employed by ForexAnalytix. There exists a wide range of analysis methods that are used worldwide but we have concentrated on the 5 methods that we find most significant and reliable:
- Macro Analysis
- Candlestick Analysis
- Basic Technical Analysis
- Harmonic Analysis
- Elliott Wave Analysis
Macro analysis looks at the behaviour of an economy or instrument from a very high level. It’s usually a tool that’s used to determine medium term performance and it uses a holistic approach that takes into account a wide range of factors. The most important macro factors that need to be taken into account when performing such analysis are the economic indicators that are released on a regular basis for each country. These are described in the Macro section of this educational area.
The remaining four analysis methods are collectively called Technical Analysis (TA). Some of the principles behind TA have been around for centuries and in a nutshell it’s the study of price action. It is essentially a study on investor behaviour and as such it has strong links to human sentiment & psychology. Each TA method uses a variety of models and rules, each one having been developed over decades of study and research.
There are many different patterns which traders learn to recognize, along with their specific parameters and characteristics. These patterns are described in their relevant section of this educational area, and we have grouped them by analysis type in order to make their reading & access easier.
Each trader has his/her own trading style & strategy. With this educational section, our goal is to outline what we think are the most prominent and useful analysis methods. The trader will then slowly decide which method(s) to use & rely on when making trading decisions. This analysis list is by no means exhaustive or as detailed as possible; it was designed to be an introduction or to be used as an easily accessible reference manual for the trader.