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Friday, August 28, 2009

Fundamental vs Technical Analysis

Basically, supply and demand determine the value of currencies. To forecast the currency trend, totally there are two methodologies, which are fundamental and technical analysis. Different traders may interested in different method.

Fundamental Analysis

Based on key economic indicators that can influence various currencies

Studies cause of market movement

Analysts will gain knowledge of charts analysis and indicators

Find explanation of the current price

Technical Analysis

Basic on past performance of a currency, equity, position or future and exercise with mathematical calculations to predict future results.

Studies the economical effect.

Predict future with history.

Analyst will gain knowledge of awareness of the fundamentals.

Find accurate forecast of future

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