Fundamental and technical analysis is used to predict the trend movement of a currency pair. If you are unable to predict a downward or an upward movement of a currency pair accurately, you will run into losses. Fundamental and technical analyses are the two types or ways with which you can analyze a market with the aid of some tools.
Fundamental Analysis:
This is the use of some natural news to analyze or predict a market movement. Natural news like earthquake, drought, war, Tsunami, Flood and Loss in the value of currency can affect a currency negatively thereby making it loosing its value.
Also natural news like increase in currency value and more exports than imports can affect the value of a currency pair positively thereby making it gain value.
You can get fundamental analysis from some news websites on the internet. Note that news can affect a market trend drastically thereby making it take an opposite turn for a long period of time.
News release usually affect a currency pair from 11am to 7pm, this is why it is not advisable to use technical analysis at this time.
Technical Analysis:
This is the use of some tools and indicator softwares provided by your Forex broker. The best time to use them is from 7am to 11am and from 7pm to 10pm, this is so because there can’t be a news release that will affect the market trend at these times.
There are over 150 tools and indicators provided by Forex brokers. You don’t need to use all of them, instead practice with one of two of them and use them with your live or real account.
Fundamental Analysis:
This is the use of some natural news to analyze or predict a market movement. Natural news like earthquake, drought, war, Tsunami, Flood and Loss in the value of currency can affect a currency negatively thereby making it loosing its value.
Also natural news like increase in currency value and more exports than imports can affect the value of a currency pair positively thereby making it gain value.
You can get fundamental analysis from some news websites on the internet. Note that news can affect a market trend drastically thereby making it take an opposite turn for a long period of time.
News release usually affect a currency pair from 11am to 7pm, this is why it is not advisable to use technical analysis at this time.
Technical Analysis:
This is the use of some tools and indicator softwares provided by your Forex broker. The best time to use them is from 7am to 11am and from 7pm to 10pm, this is so because there can’t be a news release that will affect the market trend at these times.
There are over 150 tools and indicators provided by Forex brokers. You don’t need to use all of them, instead practice with one of two of them and use them with your live or real account.
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