“It’s not about working for money. It’s about having money work for you.” – Stephen Richards.
The foreign exchange market is a 24 hours market and reaps more returns than real estate or mutual funds. As like any financial market, this also demands analysis and intuition for making money work for you. Analyses are typically done with the help of graphs and market surveys, and there are experts available who can accurately interpret these for you. But again, any form of service requires money, and as a new trader, you may not be willing to make this initial investment. So, you can carry out forex analysis free with all the various tools available online.
4 major tools for forex analysis free:
Forex is a highly liquid market, and almost all global events affect its movement. In this article, you will find out few of the free forex analysis tools available and why they require your attention before an investment is made. Read on!
1. Historical Position Ratio Tool
This is a graph that shows you the historical trend followed by a certain currency pair. Certainly, the question arises why look into history when you are trading in present? The answer is simple. All financial market makes the basic assumption that history will repeat itself while making market predictions.
In other words, if a currency valuation has moved in a particular pattern in the past and a similar waveform is being displayed now, you as a trader can assume in which direction it will move next. This will help you to place timely orders.
2. Economic indicators
Although it may seem unrelated to forex, it is one of the primary forex analysis free tool that you should consider. A country’s economy goes a long way in determining its currency valuation. A developed economy will hardly see major fluctuations while a growing one’s currency is considered safe and bullish.
Also, a fast growing economy attracts foreign investors into the country and creates a demand for its currency. This increases valuation as well.
3. Candlestick Graph Patterns
These free tools for forex analysis are available with almost all brokers and do not need an expert to analyze. It forms the basic tool to analyze the market movement, and a host of information can be derived at a single glance. Real-time plots are available, and proper interpretation can reap you huge profits.
Almost all time dealing in forex and dealing with market movements will provide this tool. Candlestick charts are available for all major currency pairs, and you can compare different pairs before investing.
4. Currency Strength Heatmap table
This table shows the percentage change in currency valuation over time and provides a comparison against one another. This is important in decision making and placing timely orders. Say, you are thinking of investing in Euros while at that time AUD is expected to rise sharply. This will be indicated by this table and notify you to make the appropriate purchase.
Similarly, there are more with their own set of importance. Make use of these free forex analysis tools to generate high returns. Remember, research is the primary pre-requisite for any form of investment, and forex is no exception. Start investing and make profitable use of this “$5.3 trillion daily transaction” market.