Best traders of forex market usually depends on two types of analysis to speculate future currency market movements.
Firstly : Technical Analysis - traders uses charts of the currency pair and statistical indicators are used to form an idea.
Technical analysis is focused on reading chart patterns and believes the past price activities are going to repeat themselves. Technical analysts completely ignore all of the fundamental information and focus strictly on price charts.
Chart patterns have been recognized and categorized for over 10 decades and the manner in which many patterns are repeated leads to the conclusion that human psychology changes little over time.
Secondly : Fundamental Analysis - analysis focuses on economic indicators and economic and political news to form an opinion on the currency’s strength or weakness.
No comments:
Post a Comment