Posts Tagged ‘forex currency’

Ways to analyze the Financial Markets

Sunday, May 31st, 2009

There are two main ways to analyze the financial markets:

Fundamental analysis – Based on movement caused by news or events and economic performance.
The Technical Analysis – Using historical prices to predict future movements, mainly with the help of the use and study of graphic elements.

The validity of each of these systems has been a frequent point of debate among analysts of different markets financial markets.
In the Forex currency market studies concluded that fundamental analysis was more effective in predicting long-term trends (over one year), while technical analysis was more appropriate for shorter time periods (0 -90 days). (more…)