The Basics of Forex Trading Analysis
Forex trading analysis involves the use of tools and techniques to analyze market data in order to make informed trading decisions. There are two main types of analysis: fundamental analysis and technical analysis.
Fundamental analysis involves analyzing economic and financial factors that can affect currency values. This includes analyzing economic indicators such as GDP, inflation, and employment data, as well as geopolitical events and central bank policies.
Technical analysis, on the other hand, involves analyzing price charts and using technical indicators such as moving averages, trend lines, and candlestick patterns to identify trading opportunities.
Both fundamental and technical analysis can be used in combination to form a comprehensive trading strategy.