What are the principal differences between fundamental versus technical analysis?
To recap, technical analysis is the study of currency price movement on the charts.
While fundamental analysis looks at how the country’s economy is doing.
Market sentiment analysis determines whether the market is bullish or bearish on the current or future fundamental outlook.
Fundamental factors shape sentiment.
While technical analysis helps us visualize that sentiment and apply a framework to create our trade plans.
Those three work hand-in-hand-in-hand to help you come up with good forex trade ideas.
All the historical price action and economic figures are there–all you have to do is put on your thinking cap and put those analytical skills to the test!
Let me pull out that three-legged stool again just to emphasize the importance of all three types of analysis.
Take out one or two legs of the stool and it’s going to be shaky, right?!
In order to become a true forex trader, you will need to know how to effectively use these three types of market analysis.
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