As far as forex trading is concerned two type of analysis are considered . One to be noted is the basic type that every body should do it named as Fundamental Analysis and other is called to be Technical Analysis.
Fundamental Analysis:
Fundamental Analysis take into account international foreign policy, the political position of different countries, world events, world statistics, interest rates and economic reports. They update the information only from the current facts. Since they move on their work with the current events and few aspects in a limited duration, it is not easy to say that their results are accurate.
Technical Analysis:
Technical Analyst deals the trade historically trying to foresee the future to make out the best output. They consider the past political condition of different country, currency, equity and sum up to predict what will be the upcoming one. most of their forecast are accurate.
3 comments:
December 25, 2008 5:49 AM
Well according to me, Fundamentals work better than technicals, as we can see in the recent recession, most technicals fail fail to tell any proper support levels, whereas fundamentals kept saying the markets are running down due to political and other issues !
December 27, 2008 5:51 AM
I would simple say, that technical analysis deals with price action only, with the use of indicators.
About fundamental, since these currencies trade in pairs, when one get weak, the other get strong, each trade has too side you can take.
March 23, 2009 10:09 AM
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