There are several methods for forecasting financial markets. The most popular is technical analysis and fundamental analysis. Some traders think is more important than fundamental analysis technical analysis. Let's look at this!
Technical analysis is method of forecasting financial markets based on earlier price and volume. There are several commercial rules and models that are based on volume and last value. These are the models as head and shoulders, flags, symmetrical triangles, ascending triangles, descending triangles and others.Traders attributed to technical analysis indicators and provisions. indicators and provisions is a mathematical calculation on the basis of the last value and/or volume.
The difference between pointers and provisions is that provisions are bound to a region and not to be reserved within a range.The most popular indicators moving average, Alligator, Bollinger bands, Ichimoku Kinko Hyo and others; the most popular action is relative strength index (RSI), commodity channel index (CCI), moving average convergence divergence (MACD), Stochastic and others. If you use this method you can specify the point of entry into the market, stop loss level and receive profit.
Fundamental analysis is method of forecasting financial markets based on the analysis of financial statements of the company and economic news.Here are some news that impacts the financial markets-household confidence, the consumer price index (CPI), the remaining trade index, meeting minutes Federal open market Committee (RANGE), the food price index (FPI), producer price index (PPI) and much more. Determines the world trends moving financial markets.Fundamental analysis is more difficult than technical analysis.One of the disadvantages of this method is the inability to determine a point of entry into the market, stop loss and take profit.
For successful negotiation on the market must be able to combine these two methods. Some successful traders on the foreign exchange market and stock market say that employ fundamental analysis only for 20% and technical analysis for 80% but traders trade on exchanges say they use fundamental analysis to 95% and technical analysis on 5% of the revenue generated by period.
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