TRADING FOREX INVOLVES ANALYSIS OF YOUR CHOSEN MARKET

Technical analysis and fundamental analysis are the two main methods of analysing the Forex markets. Technical analysis looks at the price movement of a currency pair, 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

Technical analysts look at the charts of a currency pair. 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 a currencies price. All the information needed to predict the future price movements can be found in the historical charts, and historical currency data.

FUNDAMENTAL ANALYSIS

Fundamental analysts look at the financial statements of a country's currency: current account deficits / surplus, interest rates, government policies. This information can be used to measure, and determine a country's market value. If a currency appears to be trading below a country'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 a more long term approach.

Technical analysts run their analysis over shorter time frames: minutes, days, weeks. Fundamental analysts normally look at the market history over several years.

At Your Trading Room we concentrate specifically on technical analysis, simplifying the educational process and providing powerful charting tools and proprietary indicators to give our members a valuable advantage when trading the Forex markets.

TRADING WITH YOUR TRADING ROOM

There are varying forms of technical analysis and at Your Trading Room we provide our members with both Day Trading and Swing trading training and education to suit individual requirements...