Skip to content Skip to footer

Fundamental and Technical Analysis in FX Online Trading

Traders rely on fundamental analysis and technical analysis when trading in the foreign exchange market.

Fundamental analysis is defined as a type of market analysis involving the study of the economic situation of countries to trade currencies more effectively. Fundamental traders will analyze the country’s inflation, trade balance; they will study the political and economical events that might influence the currency market.

Fundamental analysis in FX Online trading attempts to predict the causes of Forex trends, therefore it uses a number of indicators and statistics to predict money flows into and out of a particular currency.

“a single candle stick summarizes the effect of decisions made by all of the active forex traders around the world during the time the candlestick was forming.”

On the other hand, technical analysis compromise pattern recognition on a price chart, it relies on price history in order to predict the future. Technical analysis is based on marketing activities that take everything into account and price moves in trends.

GBP USD The only input studied by technical analysis is the price of a currency pair, as they think that is the market sentiment at any given moment. The basic price pattern a technical analyst use is called a candlestick; a single candlestick summarizes the effect of decisions made by all of the active forex traders around the world during the time the candlestick was forming. The outcome obtained by this is recorded in the open, high, low, and close of a candlestick.

Technical analysis makes it possible to make precise timing decisions for traders’ entries and exits, by categorizing the trends into separate groups, technical analysis allows to accurately defining a preferred holding period. However, traders will focus on specific types of support for traders to enter and exit their positions.

Technical analysis will give traders the chance to understand the meaning of the charts and help understand why certain price movements occurred.

Most traders use a combination of both, fundamental and technical analysis when trading decisions have to be taken, either when to enter or when to exit.  Both analyses provide tools to the trader, with the perspective needed to ensure trades are accurate and profits are maximized.

Tradeview offers the highest payouts in the industry. Introduce your customers to trade Forex, CFD’S, Stocks, Futures & Options. Try Tradeview today!

Show CommentsClose Comments

Leave a comment

Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.