Forecasting is the art of making statistical predictions based on present and past data typically by statistical analysis of statistical trends and patterns. A more common example would be a prediction of any factor of interest at a given future date. Forecasting is also a more generalized term, but still very useful in practice.
The field of forecast is vast. As far as I can tell, there are three factors that drive the market: fundamental, technical, and emotional. Fundamental factors include such things as inflation, political stability, etc. Technical factors include such things as economic growth, etc. Emotional factors include people’s attitudes towards the market, their confidence level, the general state of the economy, and many other things.
As far as I can see there are no hard and fast rules when it comes to predicting what will happen next in the Forex market. It really depends on who you are talking to. Some people claim that indicators are the best way of predicting trends because they are able to look at past data to form a baseline of what the market has done in the past.
Another factor that goes into predicting trends is your ability to trade successfully. You must have the discipline to not only stick to your trading plans, but also have the mental capability to stick to those plans without wavering. Trading success takes discipline and a bit of luck. There are no guarantees.
Some people think that the price of a currency pair can be easily determined. While it is true that there is some price fluctuation in each market, you cannot pick the trend just by looking at the price of one currency. Price alone will not show you if a currency will head in a certain direction or down. Price alone will not tell you how strong or weak a currency is. In fact, price can actually do quite the contrary!
What is Forecas is actually a technique that is used in conjunction with technical analysis. Technical analysis is simply the study of market history. The study of this market allows for the prediction of future price movements. What are Forecas is not the actual method of predicting where the market will go, but it is rather the study of how this market moves. And the trend it gives out is actually more important than the actual direction it points to!
What is Forecas is nothing more than a tool to help Forex traders look into the market using past trends and their current relation to the current trend. It provides you with a better picture than just looking at a simple number or price. The beauty of it is that anyone can use it. Even if you don’t know a lot about Forex trading you can still use it to your advantage.
The best thing about Forecasts is that they can be found for free. All you have to do is go to Google and type in keywords related to Forecasting and you will get more than a hundred million hits on websites offering these predictions. What is Forecas is just one of those tools that you need to understand in order to truly profit from Forex trading. It is however one of the most useful tools out there. As I said, it gives you a better understanding of how the market works and the importance of predicting the market trends. Once you understand that the Forecasting process is quite important in making profit from Forex you will most defiantly start using it to your advantage.