Fundamental vs Technical Analysis |
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Basically, supply and demand determine the value of currencies. To forecast the currency trend, totally there are two methodologies, which are fundamental and technical analysis. Different traders may interested in different method.
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Fundamental Analysis
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Technical Analysis
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- Based on key economic indicators that can influence various currencies
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- Basic on past performance of a currency, equity, position or future and exercise with mathematical calculations to predict future results.
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- Studies cause of market movement
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- Studies the economical effect.
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- Use present events to predict future
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- Predict future with history.
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- Analysts will gain knowledge of charts analysis and indicators
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- Analyst will gain knowledge of awareness of the fundamentals.
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- Find explanation of the current price
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- Find accurate forecast of future
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- Outcome is based on limited aspects at one time
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- Outcome is based on more than 150 different type of technical analysis
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