Fundamental Analysis Vs Technical Analysis
There are 2 basic types of analysis at forex market: Fundamental analysis And Technical analysis.
Fundamental Analysis
Fundamental analysis look at the market through economic, social event and political forces that affect supply and demand. The idea behind Fundamental Analysis is that if a country’s economy is doing well, their currency will also be doing well.
Technical Analysis
Technical analysis is the study of price movement. A person can look at historical price movements, and, based on the price action and identifying trends and patterns, determine at some level where the price will go.
The trend is your friend, once you find a trend you have much better odds to make money in the same direction of the trend. That’s why spotting trends is very important, and we will get to them.
Fundamentals and technical are connected, and you cannot trade smartly without considering both of them.
