The two main ways to analyse markets are technical and fundamental analysis. Learn how they differ and how to combine them.
Two Approaches
Traders use two broad methods to make decisions: technical analysis and fundamental analysis. Many combine both.
Technical Analysis
This studies price charts, patterns and indicators to forecast future movement, based on the idea that history tends to repeat.
Fundamental Analysis
This examines economic data, interest rates, and geopolitical events to judge a currency's true value.
Which Is Better?
Neither is objectively better. Short-term traders often lean technical, while longer-term traders weigh fundamentals more heavily.
Combining Both
Using fundamentals to choose direction and technicals to time entries is a popular, balanced approach.