Market Analysis.

Don't expect to succeed by mastering the technical aspects of forex trading. Market analysis has always been the key to profitable trading.

Using analysis, one can determine both the current state of affairs and the near-term prospects for future developments, and the resulting data is used to forecast price movements.

In exchange trading, there are two main approaches to market analysis: fundamental and technical, each with its own specific uses.

First and foremost, it should be noted that using one of these approaches is essential when trading forex. A simple glance at a chart doesn't always provide an accurate assessment of the situation, which can lead to losing trades.

Fundamental analysis is based on a logical approach to assessing past events. As we know, any political or economic news can cause a change in the currency price. Therefore, a trader can simply wait for an important event and draw their own conclusions about the prospects for exchange rate movement.

Fundamental analysis can also help inform their opinion of the current situation by analyzing the history of past events.

Technical analysis is based on the principle that price is all-encompassing, meaning that analyzing a currency pair's chart allows one to draw all the necessary conclusions.

This analysis is based on studying the price of a currency pair, specifically its indicators such as highs and lows, closing and opening prices, volatility, and correction magnitude, among others.

Technical analysis utilizes a wide variety of tools and methods, allowing for the precise identification of the most favorable entry points for new trades.

The term "intuitive analysis" is sometimes used in literature, but in essence, this is simply a simpler application of a combination of technical and fundamental analysis, as the trader forecasts the trend based on specific data rather than guesswork.