What is Technical Analysis?
Technical analysis differs from fundamental analysis in that it analyzes charts and patterns to predict how prices will change. Technical analysis is based around the idea that history tends to repeat itself, and that when certain patterns and indicators become apparent, prices will likely move in a specific direction. You can use common chart patterns as well as indicators and oscillators that are derived from things like trading volume and moving averages. Many of the different methods available will be discussed in detail in the upcoming sections.
What is Fundamental Analysis?
Fundamental analysis is a technique for determining the relative strength or weakness of a currency based on economic statistics. It complements technical analysis, which uses patterns of historical prices to discern future price moves.
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