Which is better Technical or Fundamental Analysis in Forex?
Can Anybody tell me which is better analysis Technical or fundamental?Or there is any other way to predict about the Currencies/Forex Market?
what are uses of these analysis?are these worthless?
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Tagged with: anybody • Currencies • Fundamental • fundamental analysis • market • Technical
Filed under: Forex Information
Either Technical or Fundamental analysis can be used in the forex market. Traders can make legitimate cases for either, and many will incorporate both into their strategy.
Fundamentals:
Traders using fundamentals look at the relative strength of each economy by reviewing economic information such as interest rates, GDP, employment, inflation, stock market healthm, etc. Traders/investors will move their money to the country where they can get the highest rate of return. And since you’re trading in currency pairs, you want to trade the strongest currency versus the weakest currency when judging by the fundamentals. You can compare this to stocks. Everyone wants to buy the stock that has the brightest outlook, strongest growth, biggest profits, etc. The difference with currencies is that you’re judging the countries economy instead of a companies balance sheet and growth outlook. Sure, political events will affect a currency, and so do management decisions…Steve Jobs at Apple, Ken Lay at Enron,etc.
Technicals: The same technical analysis used in the stock market can be used in the currency markets. In fact, some traders find it works better since there is less gapping in currencies. So you can use technical indicators, support, resistance, trendlines, candlesticks, etc.
Here are two resources to learn more about fundamental and technical analysis. I say it’s best for you to learn both and use which one you find works best for your trading.
http://forexforums.dailyfx.com/free-video-forex-trading-course/
http://www.babypips.com/school/
Because currency markets are driven by political/circumstantial/news events/trade, etc., rather than by emotion, there IS no way to "predict" what will happen next in the short-term OR the long-term. Currency trading (unlike stock-trading) is almost 100% gambling…
(Another important factor to remember is that unlike with stocks, for you to "win" in a currency trade, someone else has to lose…)
In the short term, day trading etc technicals mainly
fundamentals will always be dominant over time ….
didn’t find any answer ?, you can find books, tutorial, video, chart, prediction about forex here:
www.forex-tutorial.co.cc