Forex Price Charts – Technical Versus Fundamental Analysis
January 22nd, 2009
Forex Price Charts – Technical Versus Fundamental Analysis
Traditionally Forex traders were split into two camps. Traders who prefer fundamental analysis and traders who prefer technical analysis.
So what’s the difference between the two camps?
Technical analysis is used more for short term currency movement predictions. Traders track and predict short term market trends, and trade accordingly.
Fundamental analysis, is more suitable to making long-term forecasts, as it involves the analysis of economic factors and trends, that tend to be longer term predictions.
Technical analysts use forex charts to map trends and predict short term price movements. The charts are used to generate buy and sell signals.
You may have seen examples of forex charts on various web sites. First appearances would indicate that the reading interpretation of the charts is very difficult and specialised. Actually forex chart interpretation is not actually that hard to learn.
Forex charts are basically a reflection of a country’s economy. Economies are fairly slow moving entities,and have the tendancy to develop strong trends. Whilst still volatile and risky, the forex market is less risky than say the stocks and shares market. It’s these reasons that lead so many people to speculate in forex, often with good results.
Most brokers offer complimentary charting software with their forex platforms, which is sufficient for predicting currency pair movements, providing you know how to analyse the charts and understand the movements.
There are plenty of places online to learn the basics of technical chart analysis. Alternatively you can just invest in a forex signals service that literally tells you when to buy and sell, so removing a lot of the hard work!
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Posted in Forex Training | 
Tags: forex charting, Forex Price Charts, Fundamental Analysis, Technical Analysis
