When a trader want to determine whether they are going to sell or buy a pair of currency at any given time, they will use forex analysis to help them make the decision. Basically, there are two types of analysis that a trader can use whether it is the technical analysis or fundamental analysis. Most trader used both analysis and make the decision if both analysis point up to the same direction.
Technical analysis used charting tools or some other technical tool to help trader determine their next action. There are two types of technical analysis either it is the manual or automated system. The manual analysis relies on the trader capabilities on reading the sign from any technical indicator to make decision whether they are going to buy or sell. The automated system work in the same principle but it is not the trader who done the analysis, instead it is done by a computer software. This type of forex analysis take out any kind of human element psychological aspect such as feeling and make the decision based on technical data that it has gathered.
The fundamental analysis is work on the fundamental or the basic aspect in the nature of trading. Traders used this type of analysis by monitoring certain kind of things from gross domestic product, interest rates and even unemployment rates. Basically, any kind of thing about economic release that comes out and may affect the country in question is the one that they pay attention to. Both types of analysis works equally and there are no such thing as the best or the most superior type of analysis. Which type of forex analysis that will work is depending on so many things from the time frame that the trader works on or perhaps the access to information that they can gather.
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