Forex News – Technical And Fundamental

Forex traders use Forex analysis to decide when to trade, or in other words, when to buy or sell a currency pair at any given point of time. As forex analysis can be technical or fundamental in nature, there exist two types of traders: Fundamental and technical, using fundamental and technical analysis respectively for trading. Where economic indicators and news-based events form the basis of fundamental analysis, technical analysis is done with the help of charting tools. Forex News – Technical and Fundamental, both are a matter of a continuous debate among Forex traders.

Fundamental trader use a method to focus on company-specific events to determine which stock to buy and when to buy it. Trading on fundamental forex news is more closely associated with the buy-and-hold strategy of investing than with short-term trading. Most fundamental traders are aware of the most common financial data used in fundamental analysis: earnings per share, revenue and cash flow. Earnings announcements and analyst upgrades and downgrades are two of the most closely watched fundamental factors for traders everywhere. With literally millions of eyes on looking out for that very same edge, gaining an edge on such information, therefore, is very difficult.

A technical trader is engaged in technical analysis, examining stock charts for signs of the breakout. They are watching for signs that a stock is about to undertake a significant uni-directional price movement on high volume for a sufficient period of time, which ensures a profit. But the technical forex news used in technical trading are only the tip of the proverbial iceberg, what with the wide range of chart and graph patterns available to the technical trader.

Technical trading is a broader style, indicating a much broader approach to forex trading. Looking back in history and using the recognizable patterns of past trading data, they try to predict what might happen to forex in the future.

Both technical and fundamental forex news are used as a combination for a successful trading strategy. A fundamental analysis is applied only to a particular market and says what “should happen”. The technical analysis, on the other hand, focuses on what “actually happened”. Forex News – Technical and Fundamental, allow experienced analysts to follow multiple markets.