For analysing stocks or currencies, two different analysis methods are used – technical analysis and fundamental analsysis. While I will go deeper into these subjects soon, here’s just a general overview for you.
What is technical analysis?
When you hear the term technical analysis then this means a set of principles and analytical tools. Those principles and technical tools are used to analyse and to make predictions about the market, be it stock market, forex, futures or anything else. Technical analysis mainly means the study of price and volume.
What is fundamental analysis?
Main factors in fundamental analysis are supply and demand, so the market action. The purpose of fundamental analysis is the same – to predict stock’s future movements. Earnings is an important area in fundamental analysis – what is the company likely to earn within a certain time frame?
