If you want to remain in the Forex market for the long haul with Technical Analysis and your goals in this market are not nearsighted, then you need to strike a very fine and marginal balance between two major forms of analysis that can guarantee your successful presence in these financial markets. These two major forms of analysis are of course technical analysis and fundamental analysis.
Most traders are already quite familiar with technical analysis and already know how to use some tools or indicators related to this field. But few truly understand what it means to actually implement fundamental analysis in a way that can help their trading process for the better even if they have an understanding of this form of analysis.
Good news is you can delegate all of these challenging and complicated tasks to the smart and intelligent, automated trading tool XauBot Pro and let the technical and fundamental analysis aspects of this trading tool carry you in the forex market. In this article we are going to take a look at these capabilities.
Take a look at: Telegram Signal and Beyond Leveraging XAUBOT’s Communication Channels
Reaching a Balance Between Technical Analysis
We need to clarify something before going any further, and that is the relationship or rather the balance that can be achieved between technical and fundamental analysis. Some traders unfortunately consider these two types of analysis as one or the other.
This means they believe they have to pick one of these analysis methods and stick with that. But that is just not the case. The reality of the matter is that traders must try to find a balance between technical and fundamental analysis.
The way this balance can be obtained is by gaining an understanding of what these two types of analysis are in the first place. When you truly understand what they are, you can see how they work as complementary analysis methods and not against each other.
First of all, technical analysis, which is the more popular of the pair among traders, is a type of price analysis in which past price movements and patterns are taken into account in order to derive possible repetitive patterns in them. This means we try to look at past patterns in hopes of finding signs in them that foretell the future of the market.
On the other hand, in fundamental analysis, the main aim is to look ahead and take into account the financial news and events that are going to be released and then gauge their importance and ultimate impact that they can have on the market.
This type of analysis is that much more important in the forex market where we have foreign currencies under the influence of various market and financial forces, which goes to show you the importance of fundamental analysis for forex.
This is why it is important for traders to be able to implement both of these analysis methods and benefit from their information at the same time.
You think it might be difficult to consider two major types of market analysis at the same time? Well, you would be right! But this is exactly why you need to benefit from the perfect blend of technical and fundamental analysis that XauBot Pro offers.
|
Take a look at: Introducing the Term Pip and Pipette in the Forex Market
Technical Analysis Features of XauBot Pro
To discuss the technical analysis aspect of XauBot Pro, we first need to mention that this automated trading tool operates based on two main and major trading methods, known as scalping and multi level trading.
These two forms of trading are quite well-known and do not need much explanation. What is important here is that XauBot Pro uses various technical analysis methods in order to execute these trading strategies perfectly.
Among the technical indicators that are used by XauBot Pro are relative strength index or RSI and also Bollinger bands. But there are also various momentum indicators and moving averages such as the moving average convergence divergence.
What is more is that XauBot Pro has various notifications and alerts or signals for these technical indicators. This means you can set various thresholds or limits for them. And once these thresholds or limits are surpassed, then you can be notified and receive the signal in various ways. For instance, there is a way for you to receive the signal relevant to the technical indicator directly in your Telegram account.
So technical analysis is a huge part of what XauBot Pro is able to offer users in terms of high precision and intelligent market analysis for profitable trades. Now let’s look at its fundamental analysis capabilities.
Take a look at: Teaching sentimental analysis and its tools
How Does XauBot Pro Handle Fundamental Analysis?
So of course the way XauBot Pro is able to provide the perfect blend of different modes of analysis is through the capability that it has for fundamental analysis. For this method of analysis, XauBot Pro has various filters and tools.
Most notably the parameter that is responsible for XauBot Pro’s fundamental analysis is called news filter. As the name suggests, this parameter provides you with a filter that you put on the trading process in order to survive the release of a news item or news event.
There are two main parameters related to this feature. One of them is known as a high impact news filter and the other is known as a medium impact news filter. In both cases there are two options of before and after.
So this means for different types of news you can set a filter for before and after they are published. These filters are defined in terms of minutes during which you do not want the expert advisor to be active and for trading operations to be halted.
Take a look at: How to Become a Disciplined Trader
Conclusion
A multi-faceted approach to analysis is crucial in any market. The significance of this matter is seen just that much more in the forex market, where the benefits of technical analysis are quite clear, but also are the need and necessity for fundamental analysis. XauBot Pro, the intelligent automated trading tool, can provide you with the perfect mixture of both of these market analysis approaches for the perfect execution of trades in the forex market.
