ACM Forex in English
ACM Forex in French
ACM Forex in Spanish
ACM Forex in Italian
ACM Forex in Greek
Click here to go back to the main page of ACM
Dealing room services Forex Market Analysis tools Ressources About us Contact us

 



 
Technical versus fundamental Analysis.

Technical analysis is a method of predicting price movements and future market trends by studying charts of past market action which take into account price of instruments, volume of trading and, where applicable, open interest in the instruments.


Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic, political, environmental and other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument.


In practice, many market players use technical analysis in conjunction with fundamental analysis to determine their trading strategy. One major advantage of technical analysis is that experienced analysts can follow many markets and market instruments, whereas the fundamental analyst needs to know a particular market intimately.

Main differences between the two types of analysis:

Fundamental analysis
Technical analysis
  • Focuses on what ought to happen in a market
  • Factors involved in price analysis:
  1. Supply and demand
  2. Seasonal cycles
  3. Weather
  4. Government policy
  • Focuses on what actually happens in a market
  • Charts are based on market action involving:
  1. Price
  2. Volume
  3. Open interest(futures only


The fundamentalist studies the cause of market movement, while the technician studies the effect.


 

 

Open a live account   Register for free 30 day Demo
Live forex trading platform   Demo forex trading platform
Go to market track
Preview forex trading platform
Request a call back
Advantages of trading Forex with ACM
     
           
Copyright 2002, all rights reserved