Forex Forecast: Free and reliable, hot to get them
Why are so many beginners looking for Forex Forecast? The answer is simple: a reliable forex forecast guarantees high profits when trading on the currency market.
This article explains, in detail, what are the characteristics of a good forex forecast service and reviews two of the best free services available on the market today: eToro copytrading and ForexTB signals.
In particular, with eToro it is even possible to automatically copy what the best traders in the world do. In this case there is no need to even make predictions, just find the traders who have achieved the best results in the past and copy them.You can sign up for free on eToro by clicking here
ForexTB, on the other hand, offers an excellent signal service for forex trading, which we will discuss later in the article.
Foolproof Forex Forecast?
The dream of many beginners, indeed, is to obtain foolproof forex forecasts, 100% safe and that allow them to easily earn a lot of money.
Too bad, however, that this type of forecast does not exist. Worse, those who promise such results are usually scammers, and those who fall into their trap are bound to lose a lot of money.
The fact is that forex, like all other financial markets, is unpredictable by nature. The very fact that the possibility of trading exists is precisely the result of the unpredictability of the market.
What you can ask anyone who offers a forex forecast service is how many times in the past the forecasts have been proven correct. No service can have a 100% success rate (again, anyone who says otherwise is a scammer).
eToro is one of the most popular and used online trading brokers in Europe. The success of eToro does not derive only from the fact that it offers a really simple and intuitive interface or that there are no commissions.
eToro guarantees the possibility to copy, in a completely automatic way, what other traders do. For this reason eToro is so popular with beginners.
Thanks to the patented Copytrader software system it is possible to identify the traders who in the past have earned the maximum with the minimum risk (therefore they have made the best forex forecast).
These expert traders (called Popular Investors) can be selected for copying: it will be the software, in a completely automatic way, that will take care of replicating all the operations in real time.
The advantage for beginner traders is twofold: on the one hand they can get spectacular results right away, on the other hand they can learn how to trade by watching live what the best traders in the world are doing.You can sign up for free on eToro by clicking here
To be precise, it should be remembered that eToro does not provide any forex forecast but an automated trading system: we can say that, for those who use eToro, forex forecasts are not necessary because there are professional traders who make them (and which can be copied).
What do these great traders gain from it? Why do they give permission to be copied and are they also very helpful with the less experienced? In fact, it often happens that they answer all sorts of questions and requests for help that they receive through the eToro social network (eToro is also the largest investor social network in the world).
The answer is simple: eToro pays them based on the number of followers they have. This payment is in addition to the normal trading profits they manage to make. This explains why they are so available: they are just trying to accumulate as many followers as possible!
ForexTB Forex Forecast Signals
ForexTB is one of the easiest brokers for beginners to use and it is no coincidence that it is widely used. ForexTB is famous for a great forex signals service that it offers free to all subscribers.You can register for free to receive signals by clicking here
The advantages of ForexTB are not limited only to signals: all subscribers can be followed for free on the phone by a real trading and forex expert who provides valuable information. For those who follow these directions it is impossible to go wrong.
Furthermore, ForexTB offers for free the possibility to download an excellent free ebook that explains in detail how to get the best results with forex (and of course also how to make truly reliable predictions).
This e-book had more than 100,000 downloads in just a few months and is regarded as the best forex course in Europe: such a resounding success explains why it is truly useful for aspiring traders. In fact, it explains in detail what to do to make money with forex, without wasting time with useless theory.
Moreover, it is written in simple language, which everyone can understand without problems, even those who are really starting from scratch. It is also completely free: other trading courses are paid (there are guides that also cost 7,000 euros). You can download the ForexTB ebook for free by clicking here.
Furthermore, all ForexTB members can operate for free with a free and unlimited demo: this allows you to experience trading without risk before starting to operate with real money.You can sign up for free on ForexTB by clicking here
Forex Forecast: the Market Movers
Up to now we have analyzed some free solutions that allow you to receive very reliable forecasts. But what are the factors that move the forex market?
For those who want to make forex forecasts it is essential to understand what these factors are. It is not difficult: the forex market, like all other financial markets, follows the law of supply and demand.
Currency pairs (for example euro against dollar) not single currencies are listed on the market: this is essential to understand.
It is impossible to buy dollars if, at the same time, another currency is not sold, for example euros. The price of a currency pair reflects the relative demand of the individual currencies.
For example, if the market wants more dollars than the euro, the value of the dollar will rise against the euro. It is not complicated. But what makes the market want one or the other currency? There are some fundamental macroeconomic factors, here are the main ones:
- Interest rates applied by central banks
- Any other expansionary policies applied by central banks Inflation rate
- General state of public accounts
- Balance of payments
We can say that the healthier an economy is, the more its currency has a strong relative weight.
Forex Forecast with Technical Analysis and Fundamental Analysis
There are two systems for making predictions on the trend of the forex (and any other financial market): technical analysis and fundamental analysis.
Technical analysis is essentially based on observing the graphs of the trend of a currency pair. Traders with a minimum of experience can easily spot recurring patterns and thus make accurate predictions.
The graph above represents the Forex quote, in real time, of the euro dollar exchange rate.
The fundamental analysis, on the other hand, is based on the analysis of the market movers of the forex market that we saw in the previous paragraph. For example, if a central bank raises the official discount rate, it is very likely that the currency will apprize.
What kind of analysis generates the best forecasts? There is no a priori answer to this question. There are traders who are able to achieve better results with technical analysis and others who are better off with fundamental analysis. Some traders also conveniently combine the two types of analysis.
Technical Analysis: Forex indicators
Let’s deepen the discussion on technical analysis for a moment by talking about the main indicators that characterize it. Traders who learn the functioning of at least 2 or 3 indicators are able to immediately have better trading results and increase their performance.
Forex trading indicators are tools used to do market analysis in order to obtain trading signals by studying price charts. Do not think that they are something terribly complicated to use, in truth they are within everyone’s reach.
Here we present, briefly, the main indicators for Forex that we recommend to use in the trading phase. For each of them we have created a complete in-depth analysis and therefore you will always find the link to the relevant article.
The MACD indicator, which stands for Moving Average Convergence/Divergence, developed by Gerald Appel, is one of the most used indicators in technical analysis.
Many traders have specialized in the use of this indicator by adapting the various parameters to the market and to the time frame of the chart, the important thing is to always maintain the underlying philosophy of this indicator even if the parameters are customizable.
The MACD is obtained from the crossing of two exponential moving averages, a fast and a slower one. Let’s say right away that making good use of it immediately increases your negotiation results. It is classified among the oscillators, or in that type of indicators able to describe:
- The movement of the market
- The identification of the trend phases
- The identification of differences
Here you can find our in-depth analysis on MACD.
Simple Moving Average
The Moving Average (MA) is a simple technical analysis tool that unifies price data by creating constantly updated average data.
The average is taken over a certain period of time, such as 10 days, 20 minutes, 30 weeks or any time period chosen by the professional.
There are advantages to using a moving average in your trading, as well as there are several options on which type of moving average to use. Moving average strategies are also popular with beginners and can be adapted to any time frame, accommodating both long-term investors and traders who prefer to trade short.
Supports and Resistances
In the technical analysis of the stock market, support and resistance are determined predetermined levels of the price of a stock at which it is believed that the price will tend to stop and reverse. These levels are indicated by more “touches” of price always on the same quota without a real exceeding of the level.
- A support level is a level where the price tends to find support when it falls. This means that the price is more likely to “bounce” on this level rather than break through it. However, once the price has exceeded this quota, by a decisive amount, it is likely to continue falling until it reaches another support level.
- A resistance level is the opposite of a support level. It is where the price tends to find resistance when it rises. Again, this means that the price is more likely to “bounce” from this level rather than break through. However, once the price has surpassed that level, and it distances itself properly, it is likely to continue to rise until it reaches another level of resistance.
Supports and Resistances are essential for trading. The complete guide is here.
In financial markets, a Pivot Point is a price level that is used by traders as a possible indicator of market movement.
A pivot point is calculated from an average of significant prices taken from the trend of a market in the previous trading period. If the market in the following period is trading above the pivot point, it is usually evaluated as bullish, while trading below the pivot point is considered bearish.
It is customary to calculate additional levels of support and resistance, respectively below and above the main pivot point, by subtracting or adding the calculated price differentials from the previous market ranges.
Therefore, the Pivot Points on the chart behave in a similar way to supports and resistances, but the trader does not have to trace them directly, they are ready to be observed and interpreted.
To find out more about Pivot Points we have created this special guide.
As an excellent indicator of technical analysis we then have the RSI oscillator, excellent for making a Forex trading forecast.
The Relative Strength Index (RSI) is a momentum indicator that measures the extent of recent price changes to evaluate the overbought or oversold conditions in the price of a stock or other asset.
The RSI is displayed as an oscillator (a line chart that moves between two extremes) and can have a reading from 0 to 100. The indicator was originally developed by J. Welles Wilder Jr. and introduced in his foundational book 1978, New Concepts in Technical Trading Systems.
The traditional interpretation and use of the RSI indicate that values of 70 or higher signal that a stock is becoming overbought or overvalued and can be indicated for a possible trend reversal or a corrective price pullback. An RSI reading of 30 or lower indicates an oversold or undervalued condition.
Therefore, it is clear that excellent operational signals can be obtained with this indicator. Find out how to use it to invest in our guide to RSI.
The Average Directional Index – (ADX) is a technical analysis indicator used by some traders to determine the strength of a trend.
The trend can be positive or negative, and this is shown by two accompanying indicators, the negative directional indicator (-DI) and the positive directional indicator (+ DI).
Therefore, ADX commonly includes three separate lines. These are used to help assess whether a trade should be taken with a Long or Short market entry, or if the same trade should not be avoided at all.
We also introduce the Bollinger Bands here.
A Bollinger Band is a technical analysis tool defined by a set of drawn lines. These are two standard deviations, positive and negative, and a simple moving average (SMA) of the stock price that can be adapted to user preferences.
Bollinger Bands were developed and copyrighted by renowned technical trader John Bollinger.
Bollinger bands consist of a central band with two outer bands. The middle band is a simple moving average that is usually set to 20 periods. A simple moving average is used because the standard deviation formula also uses such a moving average.
Bollinger bands are excellent on Forex, find out why.
A Trend Line is a line drawn on the highs or lows of the market to show the prevailing direction of the price.
Trend lines are a visual representation of “dynamic” support and resistance and can be used over any time frame. They show the direction and speed of the price and also describe patterns during periods of price contraction.
The trend line is among the most important tools used by technical analysts. Instead of looking at past business performance or other fundamentals, technical analysts look for trends in price action.
A trend line helps technical analysts to determine the current direction of market prices and then make investment decisions. They believe that the trend is “your best friend” so identifying trends is the first step in the process of doing good forex or stock trading.
Here we explain how Forex trend lines are drawn.
Forex Forecast: Conclusions
Forex is a very large and very liquid financial market; It is possible to make accurate forex forecast on the forex market using technical analysis or fundamental analysis but it is also possible, for the less experienced or for those who do not have much time, to get ForexTB trading signals for free or automatically copy the best eToro traders.
In any case, it is good to remember that, like all financial markets, forex is absolutely unpredictable. Although there is a concrete possibility of making accurate forex forecast, no one is able to predict the forex trend correctly in 100% of cases.
Of course, you have to rely on the right supplier and above all keep in mind that “infallible” signals do not exist. In the market, ForexTB signals are among the most reliable.
As a guideline, a signal provider with a success rate equal to or greater than 70% is to be considered reliable.
By asking the Supplier for the history or by testing them on a free Demo account.
In Europe, those with the highest percentage are provided by Trading Central, a ForexTB Partner analysis center.