Technical Analysis vs Fundamental Analysis

One of the dominant debates in financial market analysis is the relative validity of the two major
tiers of analysis: Fundamental and technical. In Forex, several studies concluded that fundamental
analysis was more effective in predicting trends for the long-term (longer than one year), while
technical analysis was more appropriate for shorter time horizons (0-90 days). Combining both
approaches was suggested to be best suited for periods between 3 months and one year.
Nonetheless, further empirical evidence reveals that technical analysis of long-term trends helps
identify longer-term technical "waves", and that fundamental factors do trigger short-term
developments.
But most traders abide by technical analysis because it does not require hours of study. Technical
analysts can follow many currencies at one time. Fundamental analysts, however, tend to
specialize due to the overwhelming amount of data in the market. Technical analysis works well
because the currency market tends to develop strong trends. Once technical analysis is mastered,
it can be applied with equal ease to any time frame or currency traded.

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Technical and Fundamental Analysis

There are 2 basic approaches to analyzing the forex currency market, fundamental analysis and
technical analysis. The fundamental analyst concentrates on the underlying causes of price
movements, while the technical analyst studies the price movements themselves.
 Technical analysis
 Technical Analysis is what one uses  to predict future price movements, based on
past time framed analysis and the / understanding of graphics drawn by the meta platform. Although within a
Technical Analysis various thought patterns exist, generally all are based on historical graphics of
a currency. As long as one realizes the various differences of Fundamental and Technical
Analysis, both can be used to support one another, even though both may present different
conclusions.
 Fundamental Analysis
The study of specific factors, such as wars, discoveries, and changes in Government policies,
which influence supply and demand, and consequently prices in the market place.
Fundamental analysis comprises the examination of macroeconomic indicators, asset markets and
political considerations when evaluating a nation’s currency in terms of another. Macroeconomic
indicators include figures such as growth rates; as measured by Gross Domestic Product, interest
rates, inflation, unemployment, money supply, foreign exchange reserves and productivity. Asset
markets comprise stocks, bonds and real estate. Political considerations impact the level of
confidence in a nation’s government, the climate of stability and level of certainty.
Sometimes governments stand in the way of market forces impacting their currencies, and hence,
intervene to keep currencies from deviating markedly from undesired levels. Currency
interventions are conducted by central banks and usually have a notable, albeit a temporary
impact on FX markets. A central bank could undertake unilateral purchases/sales of its currency
against another currency; or engage in concerted intervention in which it collaborates with other
central banks for a much more pronounced effect. Alternatively, some countries can manage to
move their currencies, merely by hinting, or threatening to intervene

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FOREX INVESTMENT

FOREX ( FOReign Exchange market) is an interbank currency market.

The daily turnover of the forex market makes several trillion US dollars.  There is no other market with the same characteristics to compare with forex. Due to the fast development of internet technologies everyone can make forex transactions and get profit from the multimillion funds turnover. In fact all you need is a computer and the internet only, to start making money from home or anywhere in the world with forex trading. ALPARI is a leader in providing training programs for forextrading.

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Earn 5%-100% or more on FOREX investment without trading.

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FOREX TRADING

 

FOREX TRADING

 FOREX ( FOReign Exchange market) is an interbank currency market.

The daily turnover of the forex market makes several trillion US dollars.

There is no other market with the same characteristics to compare with forex.

Due to the fast development of internet technologies everyone can make forex transactions and get profit from the multimillion funds turnover. In fact all you need is a computer and the internet only, to start making Money with forex from home or anywhere in the world. ALPARI is a leader in

providing training programs for forex trading.

We at wealthyhorse model know how to explain complicated things in a simple way in order to make forex trading comprehensible for everyone.

Click HERE and learn the secret to increase your capital.

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BIG DREAMS START SMALL

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