In forex trading there are two types of analysis commonly used by traders in determining the movement of forex and also its entry point exit, this analysis include:
Fundamental Analysis: An analysis that utilizes issues, rumors, news, economic data that occur in a country that is directly related to the market.
Technical Analysis: An analysis that utilizes graphical calculations and mathematical formulas to determine the movement of the chart, the point of support resistance and also the entry point exit.
Until now many people are trying to compare which analysis is best between technical and fundamental analysis and the result is nothing better than both. In other words these two analyzes are interrelated and mutually supportive of each other. Technical analysis will not be perfectly legible without a fundamental analysis that can undermine all technical analysis. Similarly, the fundamental analysis can not run perfectly without technical analysis to determine the exit entry point and also the support resistance point.
For more details again this is the difference between the two that can be used as reference materials:
TECHNICAL ANALYSIS
Traders who use this analysis will use a lot of calculations either broad graphs, charts, good formulas to calculate the fundamental support or to calculate the Fibonacci and the strength of a trend. This is intended to get a picture of where the direction will go where the graph will move in the future. Nothing is accurate in a technical analysis, it is just a calculation on paper whose accuracy is not 100% accurate.
But it can not be denied although the accuracy and the possibility of not reaching 100% but many traders are very helpful with this technical analysis to be able to know where the price moves. The more a trader tries and plunges in, the more precision and higher the accuracy level in analyzing a price.
The three most important things in a technical analysis:
Graphs and charts
Graph is the first important point in this first translation, the second is the chart. From the chart pattern we can get a general idea of the trend of a price based on its history. After that we can see the pattern chart to know how the pressure of a market when going to market entry. There are three popular charts in the world of trading: Line, Bar and Candlestick. You can use whatever you think is appropriate, but the most popular among traders is Candlestick.
Indicators
Indicators are very important in a technical analysis, although there are also technical traders who can rely on a blank chart without using any indicator. This technique is usually called naked trading.
But for those who are not familiar with naked trading, can use the indicator to determine where the price will move to get a picture history of prices that have occurred and where will the price will move.
There are many even hundreds of indicators that exist in the world of trading, which traders need to do is try many to find which one fits best.
Technique or Method
The purpose of the first and second points is to find the most suitable trading method to use.
FUNDAMENTAL ANALYSIS
If technical analysis is more to technical trading, a complicated analysis and a lot of calculations. So fundamental analysis is more to issues, rumors, news, economic data that occurs in a country that is directly related to the market.
This automatically you will learn all matters related to economics either financially, macro or monetary policy policy. As an example is the most recent increase in US central bank interest rates conducted by the Fed which has the impact of strengthening the dollar.
In addition, a few years ago there was a conflict in the Middle East which then had a direct impact on the fluctuation of oil and dollar prices, which ultimately had a direct impact on various pairs related to the dollar at that time.
There are also news of scheduled economic news that can be seen in the forex calendar that can help traders to estimate where prices move.
From here it is clear that the fundamental analysis is an analysis that really relies on issues, rumors, news, economic data that not only happen in one country, but also around the world. Because of rumors, rumors, news, economic data is then a factor driving price.
CONCLUSION:
Fundamental Analysis
It takes a little time to get data and news
More subjective because of the reliability of the opinions of many people
Not too efficient if only rely on this analysis for trading
Technical Analysis
Quite a lot of calculations are done to get a data
The ability to read charts is absolutely necessary
Suitable for long term trading
From here we can see the obvious difference between Fundamental and Technical Analysis, there is nothing better than both. But these two analyzes are related to each other to make an accurate analysis result.
Fundamental Analysis: An analysis that utilizes issues, rumors, news, economic data that occur in a country that is directly related to the market.
Technical Analysis: An analysis that utilizes graphical calculations and mathematical formulas to determine the movement of the chart, the point of support resistance and also the entry point exit.
Until now many people are trying to compare which analysis is best between technical and fundamental analysis and the result is nothing better than both. In other words these two analyzes are interrelated and mutually supportive of each other. Technical analysis will not be perfectly legible without a fundamental analysis that can undermine all technical analysis. Similarly, the fundamental analysis can not run perfectly without technical analysis to determine the exit entry point and also the support resistance point.
For more details again this is the difference between the two that can be used as reference materials:
TECHNICAL ANALYSIS
Traders who use this analysis will use a lot of calculations either broad graphs, charts, good formulas to calculate the fundamental support or to calculate the Fibonacci and the strength of a trend. This is intended to get a picture of where the direction will go where the graph will move in the future. Nothing is accurate in a technical analysis, it is just a calculation on paper whose accuracy is not 100% accurate.
But it can not be denied although the accuracy and the possibility of not reaching 100% but many traders are very helpful with this technical analysis to be able to know where the price moves. The more a trader tries and plunges in, the more precision and higher the accuracy level in analyzing a price.
The three most important things in a technical analysis:
Graphs and charts
Graph is the first important point in this first translation, the second is the chart. From the chart pattern we can get a general idea of the trend of a price based on its history. After that we can see the pattern chart to know how the pressure of a market when going to market entry. There are three popular charts in the world of trading: Line, Bar and Candlestick. You can use whatever you think is appropriate, but the most popular among traders is Candlestick.
Indicators
Indicators are very important in a technical analysis, although there are also technical traders who can rely on a blank chart without using any indicator. This technique is usually called naked trading.
But for those who are not familiar with naked trading, can use the indicator to determine where the price will move to get a picture history of prices that have occurred and where will the price will move.
There are many even hundreds of indicators that exist in the world of trading, which traders need to do is try many to find which one fits best.
Technique or Method
The purpose of the first and second points is to find the most suitable trading method to use.
FUNDAMENTAL ANALYSIS
If technical analysis is more to technical trading, a complicated analysis and a lot of calculations. So fundamental analysis is more to issues, rumors, news, economic data that occurs in a country that is directly related to the market.
This automatically you will learn all matters related to economics either financially, macro or monetary policy policy. As an example is the most recent increase in US central bank interest rates conducted by the Fed which has the impact of strengthening the dollar.
In addition, a few years ago there was a conflict in the Middle East which then had a direct impact on the fluctuation of oil and dollar prices, which ultimately had a direct impact on various pairs related to the dollar at that time.
There are also news of scheduled economic news that can be seen in the forex calendar that can help traders to estimate where prices move.
From here it is clear that the fundamental analysis is an analysis that really relies on issues, rumors, news, economic data that not only happen in one country, but also around the world. Because of rumors, rumors, news, economic data is then a factor driving price.
CONCLUSION:
Fundamental Analysis
It takes a little time to get data and news
More subjective because of the reliability of the opinions of many people
Not too efficient if only rely on this analysis for trading
Technical Analysis
Quite a lot of calculations are done to get a data
The ability to read charts is absolutely necessary
Suitable for long term trading
From here we can see the obvious difference between Fundamental and Technical Analysis, there is nothing better than both. But these two analyzes are related to each other to make an accurate analysis result.
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