TRADING EMINI'S INVOLVES ANALYSIS OF YOUR CHOSEN MARKET
Technical analysis and fundamental analysis are the two main methods of analysing the Emini's markets. Technical analysis looks at the price movement of an indice, and uses this data to identify buy and sell signals and future price movements. Fundamental analysis looks at economic factors. These two methods differ greatly.
TECHNICAL ANALYSIS
As per currencies traders can utilise technical analysis to look at the charts of an index. The main principle behind this form of analysis is that there is no reason to analyse a company's fundamentals because these are all accounted for in the price of the index. All the information needed to predict the future price movements can be found in the historical charts, and historical market data.
FUNDAMENTAL ANALYSIS
Fundamental analysts look at the financial statements of an index: balance sheets, cash flow statements, and income statements. This information can be used to measure, and determine a company's market value. If a stock appears to be trading below a company's viewed 'value', it's a good investment. This is a simplified view of fundamental analysis, however... fundamental analysis, when compared to technical analysis tends to be more a long term approach.
Technical analysis, run their analysis over shorter time frames: minutes, days, weeks. Fundamental analysts normally look at the market history over several years.
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