Fundamental Analysis Vs Technical Analysis in the Forex Trading Market

Sunday, February 1, 2009


The main difference between fundamental vs technical analysis of the Forex trading market is that, while fundamental analysis uses economic, political, social and other factors that affect supply and demand of the trading Forex market to foresee price movements, technical analysis uses mathematical and graphical charts of previous market action, in order to analyze the Forex trading market.
The basic difference between Forex fundamental and technical analysis is therefore that:
- Forex Fundamental analysis uses various factors that influence supply and demand to predict the currency change.
- Technical analysis uses charts of previous currency change to predict the currency change.

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