Analysis
Market analysis can guide you on the path of the successful trading. All 3 analyses have proven themselves as crucial in trading decision making.
CHART'S POWER
Technical Analysis
Technical analysis is based on forecasting the future price movements of a certain asset, taking in consideration its past behavior and patterns. Basically, technical analysis says that price patters repeat themselves, like history repeat itself, so a trader must be able to learn and interpret the past behavior. A price chart is a trader most powerful weapon. Main methods used by technical analysts are tracking chart patterns, using mathematical indicators like moving averages and many others.
NEWS POWER
Fundamental Analysis
Fundamental analysis is related with a general observation of the economy. This include economic, political, social aspects of a country. While technical analysis tends to find out when an asset price will move, fundamental analysis tend to give reasons why an asset price will move. There is an official economic calendar with financial events which occur for sure in certain dates. There are even sudden events, like political agreements between states, wars, weather complications.
TRADER'S MOOD POWER
Sentimental Analysis
The prevailing price action of a certain financial asset reflects the overall opinion of all market participants. The combined ‘feel’ or ‘mood’ of the market is what is referred to as market sentiment. Sentiment analysis signifies the combined attitude of market participants towards risk. When the sentiment is high, the price of the underlying asset will tend to go up, whereas a down sentiment will drive prices lower. A significant sentiment tool in financial markets is the COT (Commitment of Traders) report released every week by the U.S.
