There have always been disputes about which of the Forex analyzes is most successful and with which of them you can earn more. As a result, traders still come to the conclusion that in trading one should use each of the analyzes.
In this article we will look at the technical and fundamental analysis of the Forex market and find out how they work together.
This type of analysis is used to study the movement of prices. In fact, this is Forex charts, with which you can follow the trend of price movements in the past, which will make it much easier to predict future changes and trends.
It is the trend – the main component of technical analysis in the Forex market, because during the trend you can earn much more and easier. You only need to enter the position at a time when the price has gone straight down or up. Determination of the most successful minutes for this and provides technical analysis.
Unlike technical analysis directed to the inside of the market, fundamental analysis considers external factors that, to a greater or lesser extent, can affect the market movement: such as politics, statistics, economics, etc.
A good economy in a certain country provides investors who want to invest in the national currency, which is currently considered stable and strong.
A trader who uses fundamental analysis should monitor the actions of government agencies that affect the economy.
Really effective only together
As we have already discussed, disputes about which of the two tests are better – set. Opinions, perhaps, even more. But in fact, in order for the analysis of the market to be full and high-quality, it is necessary to use both analyzes.
For example, during trading with technical analysis, you noticed a good opportunity to enter. Immediately decide to buy, say, the euro. But then the market turns in the other direction by forty points. Soon you will learn that there was a decrease in the interest rate in the beginning of active sales opening.
Afterwards, you just have to look at how all your technical analysis is falling apart.
If in this situation before entering the market you connected to the analysis a fundamental analysis – this situation would not exist.
Let’s sum up the results
For the most successful profitable trading on the Forex market, it’s not enough to approach it from one side only. It is necessary to see it completely, using both types of analysis, and only then you will be able to secure your money and earn more.