Access to Tickmill's Economic Calendar for fundamental analysis Table of Contents
- Use Tickmill's Economic Calendar
- 2 Main Ways for Market Analysis
- Merits of Technical Analysis
- Basic of Fundamental Analysis
- Technical Analysis is for Scalping and Day Trading
Use Tickmill’s Economic Calendar
There are many large investors called professionals such as institutional investors, traders of securities companies, and hedge funds in the FX market.
Even individual investors have to fight in the same market as theirs and many traders who have not done enough market analysis tend to suffer losses.
In order for traders to trade with as little loss as possible, it is necessary to grasp the market situation firmly and analyze it using analytical methods.
Tickmill’s Economic Calendar is one of the most popular trading tools among FX traders.
Tickmill’s Economic Calendar shows the list of important market and political events, and the calendar includes the date, time, the main affected FX currency, name of the event, forecast and the importance.
To perform fundamental analysis, an Economic Calendar is one necessarily tool for any traders.
Tickmill’s Economic Calendar is available for all traders of the broker in Tickmill Official Website.
Open Tickmill’s Real Account today to start using their free trading tools.
2 Main Ways for Market Analysis
In order to predict the market price, it is important to first grasp and analyze the situation.
For example, it is often the case in FX trading that you predict that the EUR/USD exchange rate will rise, and you entered “buy” position, but the price fell unexpectedly.
There are roughly two types of analytical methods for reading market movements which are “technical analysis” and “fundamental analysis.”.
First of all, it can be said that knowing what kind of analysis method is used for technical analysis and fundamentals analysis is the first step of market forecast.
What is technical analysis?
Technical analysis is a method of predicting future price movements by interpreting the chart that represents past market price movements and analyzing the direction (trend) of the market and chart patterns that were common in the past.
For example, if a chart pattern similar to the one in the past appears, we think that there is a high possibility that similar results will occur in the future, so we will predict the market price.
If many people actually make the same predictions, the price may move to reproduce the same patterns as in the past.
In short, technical analysis is an analytical method for predicting future market prices based on charts.
What is fundamentals analysis?
It is an analysis method that analyzes the effects of changes in economic trends, monetary policy, fiscal policy, etc. on the entire market and considers the major direction of market prices.
When reading trends in the foreign exchange market with a fundamentals analysis, we start by looking at the economic indicators of countries around the world that are released daily.
Based on the analysis and consideration of economic indicators, we will analyze the overall flow of the economy, “How will the announced economic indicators influence future market prices?”
In this way, fundamental analysis is a method for analyzing the future exchange rate flow based on the economic indicators and policy announcements of each country.
To perform this fundamental analysis, Tickmill’s Economic Calendar can be a great tool to utilize.
Merits of Technical Analysis
Both technical analysis and fundamentals analysis are important, but let’s start with the technical analysis.
The main advantages of technical analysis are the following 3 points.
- The basic view of indicators used in technical analysis is the same.
- A lot of technical analysis information is available.
- Technical analysis is highly versatile.
For your information, Tickmill MT4 trading platform has various tools built-in to perform technical analysis.
Everything you need for free, thus you don’t have to worry about looking for the tools for technical analysis with Tickmill.
1. The basic view of indicators used in technical analysis is the same
Various indicators such as RSI, MACD, and moving average used in technical analysis are basically used to some extent, and there are many commentary books.
It is easy to acquire knowledge and can be immediately used for FX practice.
2. Easy to collect information about technical analysis
The second reason is that it is easy to collect information about technical analysis.
Many traders use technical analysis, especially the well-known traders and bloggers to communicate how they are looking at the charts.
Therefore, it will be a great advantage that there is much information that can be referred to such as how to combine the indicators used for technical analysis.
Also, the merit of technical analysis is that it is not necessary to collect information from various media as in fundamental analysis, and it can be completed with one chart screen.
If you have a PC or smartphone, you can analyze charts and study FX, so technical analysis may be the first step to get started.
3. Technical analysis is highly versatile
Technical analysis can be used not only for the FX market but also for all the so-called market prices.
The FX market is just one part of the world financial market.
Therefore, it is also important to analyze stock movements and bond movements.
Technical analysis can also be used to analyze other such financial markets.
Basic of Fundamental Analysis
Even if it’s all together with the fundamentals analysis, all the news analysis can be said to be fundamentals analysis, so many beginners may not know what to analyze.
Therefore, we would like to introduce “policy interest rate trends” which is one of the important factors in conducting fundamentals analysis.
Basis of fundamentals are economic news such as policy interest rate trends.
One of the most important factors in fundamentals analysis is the trend of policy rates.
The basic idea of the foreign exchange market is that it influences the yield of bonds and creates a flow of funds to those with higher policy rates.
Also, big economic news can be a factor in currency fluctuations.
Therefore, political speculation and remarks by important domestic people become important in predicting the trend of policy interest rates in the country.
For example, traders may want to pay attention because price movements may be large when the US employment statistics are released.
It is important to capture this large macro movement when a beginner studies basics analysis.
When we look at news in our daily lives, it is also important to check it in terms of how it relates to policy interest rates and what affects policy interest rates.
With Tickmill, you can also stay updated of the upcoming important events by referring to the economic calendar.
Technical Analysis is for Scalping and Day Trading
In order to study FX analysis, naturally price charts are needed.
The FX chart can be used immediately after opening an account with Tickmill.
There are also many charts that can be viewed free of charge on the internet, but it would be more customizable to use the charts of the Forex companies to see indicators for analysis.
Tickmill provides technical analysis tools for FX charts free of charge, and you can do technical analysis as soon as you open an account and are ready to trade.
For short-term trading, real-time technical analysis to understand market movements is essential.
Fundamentals analysis does not work well when performing scalping, day trading, etc., which are said to be short-term trading.
By deciding on which time axis you will trade, you can change or adjust the indicator according to the time frame.
Use short-term trading with a technical analysis that can make such adjustments.
You can find out what kind of indicator to use while studying, so it’s a good idea to check your various timelines and make your own trading rules.
Since opening an FX account with Tickmill is basically free, first open an account and try to find out the various trading tools of Tickmill.