MTI Analyst Articles

Forex Technical

Fundamental Analysis vs Technical Analysis

January 15, 2010

 

Jose Tormos

MTI 4.0 Charting on Demand serves as an all-in-one Forex charting platform and analysis tool that gives Forex traders the same accurate and reliable Forex charting tools that the pros use.

 

Chart Analysis

Forex fundamental analysis is a fundamental strategy of trading widely used by online traders of the forex market.  According to this method, the analysis of economic indicators, social factors and government policy of a business cycle can forecast price movement and trends of the market. It is possible to predict the conditions of the economy, but unlikely the market prices by using the fundamental analysis. You should have a certain plan of action concerning the ways of using the information as entry and exit spots in a certain strategy of trading.  For Fundamental news MTI has a trading strategy that eliminates emotion and creates procedure.

Chart Analysis

Technical analysis attempts to forecast future price movements by examining past market data.

Most traders use technical analysis to get a "bigger picture" on a currencies’ price history. Even fundamental traders will glance at a chart to see if they're buying or selling at a fair price, or entering an inconsistent, sideways market.

Technical analyze the following::

• History repeats itself in regular, fairly predictable patterns. These patterns, generated by price movements, are called trading signals. A technical analyst's goal is to uncover a current market's signals by examining past market signals.
• Prices move in trends. Technical analysts believe price fluctuations are not random and unpredictable. Once an up, down or sideways trend has been established, it usually will continue for a trading period.

 

Analysis

Traders rely on price movement, candlestick formations and other convergences to find the ideal entry and exit points for a trade. Some indicators help identify a trend, while others help determine the strength of that trend over time.

Technical analysis can add discipline and minimize emotion in your trading plan thus creating procedure. It can be hard to screen out fundamental impressions and stick with your entry and exit points as planned. While no system is perfect, technical analysis helps you plan your trade and trade your plan.

It is highly recommended that you practice with the MTI 4.0 charting software as you read through these articles. It is easy to download MTI 4.0 and to sign up for the best charting software available today by contacting a charting representative.