In a forex trading, technical indicators are very important (indicating the price movements). Even the fundamental analysis too is very important. Fundamental analysis and the technical indicators are the basic economic principles of supply and demand. Price changes in forex trading according to the different supply of the prices and different demand of the currencies.
The demand factors in a trading, the prices of currencies are changing along with the demand, which is high or low. If a currency has the high demand that means the pair of currency has the high price value, when it has low demand means low price value. The price value of currency depends on demand for the currency.
The supply factors, the basic value of the currency change along with the supply of currency. When the supply is low the value of currency also comes down, when the supply is high the value of currency also goes up.
The trader must remember this supply and demand in their trading process. The real price movements of currency is based on its demand. Keep this demand and supply concept in mind and forecast the trade.
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