Effective forecasting: Learning to filter information sources.

Ted Capwell

Analytics and forecasting of situations in the global financial markets is an integral part of successful trading. It is analysis that allows you to make a forecast and open a deal that in the future will bring profit.

In making forecasts, textual and graphic materials from a wide variety of sources are used. An experienced trader studies the economic and political news, takes into account many factors, and only then proceeds to the opening of transactions.

How to choose an information resource for forecasts?

Today, there is no problem in finding a source for obtaining market data. It is important that the source was as objective as possible. Information can also be obtained on several resources at once, in order to further compare the facts and make the most correct decisions.

A good source of information for forecasts includes:

● important news affecting the market;

● opinions of economic experts;

● availability of charts and quotes;

● economic calendar.

Usually, expert comments are accompanied by short-term forecasts, and within the same information portal there may be several opinions, including opposite ones. Therefore, one should not rely on even the most convincing arguments of analysts, and make all decisions based on our own analysis.

Some trading platforms include the necessary tools for forecasting, eliminating the need to visit third-party resources. Binarium trading platform provides traders with a wide range of applications for analysis, and also offers excellent trading conditions – the minimum deposit of $ 10 and over 50 assets with a profit of up to 90%.

Our website has an economic calendar and a training section with proven trading strategies. A quick and functional terminal is provided for work, the charts are equipped with indicators. There is a unique application with signals from a professional analyst – “Trading Room”, proved to be an effective and profitable tool that helps customers of the company to achieve good results in trading.

Analytics is divided into two main types: fundamental analysis and technical. One can add to them one more factor – an intuitive one, obtained with experience. Successful traders over time begin to “feel” the market, and can predict the movement of the chart, which contradicts the fundamental and technical factors. Let us dwell on each type of financial analytics.


How to choose information resources for making forecasts for traders ?


Forecasts based on fundamental analysis

The fundamental factor involves the study of news of the economy, finance and politics. These events, one way or another, affect the quotes of currencies, stocks, commodities, indices, cryptocurrencies and other assets. To compile a forecast based on fundamental analysis, the trader uses the following events:

● publication of rating and news agencies about the world economy or politics (Bloomberg, Reuters);

● official data published by representatives of the largest departments (Central banks, ministries);

● Statements by top officials (presidents, prime ministers);

● news about individual large companies, sectors of the economy;

● Statements of major shareholders, heads of corporations, the publication of insider information.

Professional analysts are always aware of key events. They understand how this or that information can affect a single asset and the entire financial market in general.

For example, in the USA every first Friday of the month a report on unemployment is published. If growth of this indicator is noted, the American dollar starts to weaken in pairs with other currencies. Against this background, traders open trades in the appropriate direction.

Or, for example, a meeting of representatives of OPEC countries, where a decision is made to reduce oil production. This factor leads to an increase in commodity prices, as investors begin to buy futures for black gold, and traders, in turn, make deals and get their profits.

You should also pay attention to the time factor – the sooner the reaction to a fundamental event follows, the more advantageous position can the trader open by making a good forecast.

Technical analytics and forecasting

The technical factor is based on the analysis of graphs – the search for specific graphical models and the use of indicators. As you know, the behavior of the schedule is constantly repeated. Trends, rebounds, support and resistance levels are regularities and are easily monitored by an experienced analyst.

It is noteworthy that fundamental factors are not taken into account in technical analysis. Only the “dry” figures on the selected asset are taken into account: sales volumes, the ratio of sellers and buyers at the moment. On the basis of these data, graphic models are formed that allow us to give a forecast for the further scenario.

The analysis pays special attention to price levels — the highs and lows of the asset for a given time period. The most optimal type of chart for technical analysis is candlesticks. Each candlestick shows how the price of an asset has changed during a selected period of time. The red figure means that the price has fallen, green shows growth.

Asset prices are subject to trends. If the course is growing – this is an uptrend, if it falls, it is a downward trend. In the event that an asset cannot determine a trend, it moves in a flat, or side range. It is possible to identify the presence / absence of a trend on any timeframe, but the overall picture is made up over long periods – from D1. Therefore, even making a short-term forecast, it is important to analyze the medium and long-term asset ranges.

Technical analysis indicators help to quickly identify models on charts. For example, the moving average indicator (SMA) is very useful on a candlestick chart, as it allows you to immediately determine the direction of the trend, switching between timeframes.

But, even paying due attention to the fundamental factors and technical analysis, the forecast can be unsuccessful – the price will behave in spite of. The more trades you make, the higher your trading skills become. At some point, your intuition will start helping you. The combined use of two types of analytics with point intuitive actions is a characteristic of a trader who has a stable profit from financial trading.


“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”