Types of analysis method to forecast the price movements of commodity (or stocks/securities):
1. Fundamental Analysis and
2. Technical Analysis
In fundamental analysis, the first thing that it is important to understand from fundamental standpoint is what the economic situation is as it affects the financial instrument you are trading. It is about study of economic situation of a county that affects the price of financial instruments you are trading.
Technical analysis is the method to analyze the market by analyzing statistics generated by market like past price trend and volume. Here, analysts use charts and other tools to identify the pattern that can suggest the future market activity.
While technical analysis focuses solely in the analysis of historical price action, fundamental analysis focuses on everything else including things such as the overall state of the economy, interest rates, production, earnings and management.
1. Fundamental Analysis and
2. Technical Analysis
In fundamental analysis, the first thing that it is important to understand from fundamental standpoint is what the economic situation is as it affects the financial instrument you are trading. It is about study of economic situation of a county that affects the price of financial instruments you are trading.
Technical analysis is the method to analyze the market by analyzing statistics generated by market like past price trend and volume. Here, analysts use charts and other tools to identify the pattern that can suggest the future market activity.
While technical analysis focuses solely in the analysis of historical price action, fundamental analysis focuses on everything else including things such as the overall state of the economy, interest rates, production, earnings and management.
No comments:
Post a Comment