The goal of forex trading is to benefit from the movement of Forex prices and here we will analyze the two fundamental and technical forms of analysis and see which is the best. Which method suits you, then? Let’s find out.
Let us first look at the fundamental analysis which is the study of the facts of supply and demand to find out where prices may go in the future. When studying political and economic events, the FX trader buys or sells this news.
The problem with fundamental analysis is that while we all have the same facts, we all draw different conclusions from them. Marketers don’t respond to the news and see it logically, they also respond to the emotions of greed and fear and that means you can’t change the news for profit.
If we look at the currency markets, it is not the news that is important, the reaction of their traders to this is why, and we will see that the markets fall when the news is at its best and set, when they are at their worst.
The problem with studying fundamentals is that this form of study does not take into account the fact that traders are emotional beings and this is where the technical analyst has a huge advantage.
If you use technical analysis, you will only assume that the fundamental supply and demand situation will be reflected in the price action, but of course not only do you see the news, you see how each trader has operated in relation to it and the price you see. all the news and the Psychology trader at once.
If you want to earn in forex trading, not only do you use Forex charts as a better way to trade than trying to change the news, but you also need much less time. Currency exchange technical analysis allows you to make three-digit gains by simply following the price action and is the best way to trade currencies.