Successful trading starts at appropriate set of analysis. Whether you prefer fundamental analysis or technical indicators, our articles will answer your questions.
To take the most appropriate decisions in trading, you need to prepare a market analysis. Traders use two major types of analysis - technical and fundamental. The first is based on trading history, with charting the currencies and determining a pattern. The second is more theoretical - it focuses on economic data, major indicators and events that can trigger a move in the market. The FX market analysis allows traders to take informed decisions in their day-to-day activity. Let’s take them one at a time and see which one offers more winning chances. The technical analysis uses statistics - it monitors the market evolution to see what were the prices, what were the volumes and determines a trend. Based on this trend, the FX analysis determines potential future quotations. On the other hand, the fundamental analysis is based on monitoring all the factors that may have an impact on currencies. And there are quite a few - the interest rate, unemployment rate and GDP, to name a few. Each trader can choose what data to monitor, depending on what currency he follows. Trader prepares a specific strategy in close relation to this macroeconomic data and its expected effects on the currencies.