When trading forex, knowing when to buy or sell is key, and to make the right decisions, traders mostly use two main methods: technical analysis and fundamental analysis.

Technical Analysis: This method studies price charts to find patterns that can predict future price movements. Here’s how you can use it:

• Support and Resistance Levels: These are price points where the market tends to stop and reverse. Traders use them to set entry and exit points.
• Indicators: Moving averages, RSI, MACD, and Bollinger Bands help traders see trends and momentum.
• Candlestick Patterns: Certain formations like doji, engulfing patterns, or head and shoulders can signal market direction.
• Trendlines: Drawing trendlines can help you see the general direction of the market and potential breakout points.

Fundamental Analysis: This method looks at economic and political events that affect currency values. Here’s what to watch out for:

• Interest Rates: Higher rates often strengthen a currency, while lower rates weaken it.
• Inflation Reports: Rising inflation can cause central banks to increase interest rates, affecting currency values.
• Employment Data: A strong job market usually strengthens a currency, while high unemployment weakens it.
• Geopolitical Events: Wars, elections, and trade policies can cause sudden market movements.

Putting It Together Smart traders use both methods. Technical analysis helps you time your trades, while fundamental analysis helps you understand why the market is moving.

Remember to always check both before making

a decision.