The Forex market is the largest financial market in the world and is highly volatile and volatile. It does not lend itself to manipulation, but there are many factors, taking into account which you can try to predict currency rates and make a profit.
Instructions
Step 1
Use technical analysis to predict currency rates in the Forex market. This analysis is based on the assertion that the current situation has already existed before. First, determine the trend or trend in the movement of the exchange rate. Recognize trend lines on charts: resistance and support lines. Depending on how these lines are located relative to each other, the trend can be upward, downward or sideways.
Step 2
Having determined the trend of movement for this currency pair, start looking for classic patterns. These figures are described in many textbooks and literature on Forex. Some of them indicate the continuation of the trend movement, and the second indicate its reversal. Having correctly identified the figure on the Forex chart, you can predict currency rates for profit.
Step 3
Use fundamental analysis of the Forex market. This method of forecasting the exchange rate is based on the consideration of political, financial, credit and economic indicators in a particular state, affecting the state of a particular currency.
Step 4
Watch for the release of not only economic and political news, but also for the emergence of various force majeure circumstances, for example, natural disasters. If the National Bank's deposit rates go up, the economy is recovering or investment funds are injected, then soon we can expect an increase in the rate of the corresponding currency.
Step 5
Monitor the situation in the foreign exchange market as a whole. Analyze rate charts for currencies such as the US Dollar, Japanese Yen, Euro, British Pound Sterling and Swiss Franc. These currencies are the main ones in the Forex market, and each of them affects the others in its own way. Analyze the moment, this will help you predict possible abrupt changes in the charts of exchange rates.
Step 6
Use the services of various analytical sites and programs to help you predict Forex exchange rates.
