AvaTrade’s Market Analysis
Join AvaTrade today and enjoy the best trading experience you can get!
By definition, technical analysis is the forecasting of the future price action of an underlying financial asset based on its past price behaviour. Essentially, technical analysts believe that ‘history repeats itself’ and thus, a price chart is a technical analyst’s best friend. Some of the methods used by technical analysts include tracking chart patterns, such as head and shoulder pattern, and utilising mathematical indicators, such as moving averages and Stochastics.
By definition, fundamental analysis is the study of economic, social and political factors that affect the supply and demand of an underlying financial asset. Basically, while technical analysts seek to find out ‘when’ an asset’s price will move, fundamental analysts attempt to establish ‘why’ an asset’s price will move. A major method which fundamental analysts apply in the market is tracking the Economic Calendar for major economic events and news releases that may have an impact on the prices of their favourite assets.