Fundamental vs. Technical Analysis

Trading decisions are made based on both “Fundamental” and “Technical” analysis of the currency markets. Technical analysis is the use of mathematics to identify trends and predict movements in currency prices. Technical analysts use tools such as charts, trend lines, averages, and many others. Fundamental analysis attempts to understand currency price movements by examining the economy behind the currency as well as other information, such as economic and trade indicators, news and opinions. The most successful traders know how to use both techniques in concert.