FAQ What is Technical and Fundamental Analysis?

[Richard Salime]

In my opinion the two are equally important, and they are the two main methods to try to predict the price behavior of a particular financial instrument in which you want to invest and what is the best time to buy / sell and thus obtain the maximum possible benefit...

 

[Tor_88]

Fundamental analysis:
Trade the market based on Geo-Politics, economic situations and news releases comes under Fundamental analysis.

Technical analysis:
Trade the market based on indicators, charts and candlesticks comes under Technical analysis.

Short and crisp, exactly how it should be.

 

[Gavin_ron]

In my opinion the two are equally important, and they are the two main methods to try to predict the price behavior of a particular financial instrument in which you want to invest and what is the best time to buy / sell and thus obtain the maximum possible benefit...

Yeah. Many times people tend to focus on one type of analysis and leave the other. But we should consider both for better results.

 

[marcela 2020]

Technical analysis: it consists of the study of market action, mainly through the use of charts that represent the quoted price, with the purpose of predicting future trends in the price. To do this, it uses the analysis of past stocks or values and It can also be supported by various indicators, mainly based on statistical calculations that allow predicting future price behavior and the best time to open or close a position.
The fundamental analysis studies the value of a company to establish if the price reflects the value of the company or if it is undervalued or overvalued in the market. If we conclude that the company is undervalued, we would buy shares, while if we believe it is overvalued, we would sell.

 

[omer]

tehnical anylasis- understanding certain patterns and calculating movments ,for example (algo trading is a robot that is doing only technical anylsis by using certain patterns and average movment to try to indicate the futures asset).

fundamental anylsis - understanding live news and how it can affect a certain asset , for example( the moment the ethiopean airplane crashed and people died ,boing striked down ) this shows you that in order to be the most succesful trader you have to understand how your combining both.
check this out :Boing shares fall 13%!!

 

[Simionluca]

Thank you for tell us details. It's really helpful for beginners. I think so.
Thanks

Yeah agree.

 

[Felix_trade]

No doubt the basis of both the analysis is different, but both of them are equally important in forex.