Which Forex analysis is best

Hello an welcome to the Dojo,

Here we continue on the path to enlightenment towards Forex Mastery. To become a Master you must learn from the masters. Young grasshopper we shall continue on this path towards demystifying the art of trading. We had previously looked a the various Forex analysis. Again if you don’t know what Forex analysis is refer back to Forex Analysis. We learn what to use when faced with a situation where you must use force he he skill. So the three types were Technical, Fundamental and Sentimental. Technical Analysis was the chart watching, Fundamental the News watching and Sentimental the people watching. To clarify, this how I remember them but you  should find your own way. If you cant find your own definition and don’t know what this three scientific words are refer back to Technical Analysis, Sentimental Analysis and Fundamental Analysis. Once you’ve recapped or already know what it is we continue.

Which is Trade Analysis is Best?

The million dollar question for almost all traders.

The answer is all of them.

What?? You ask

The three types of analysis go hand in hand to make you a better informed trader, so as to make the most and make more, trade opportunities for yourself. Imagine the technical analysis as a visualization of the fundamental analysis and the sentimental analysis. While the fundamental analysis leads to sentimental analysis.

Let me clarify.

The news (fundamental analysis) leads to people having a view of the market leading to a collective general movement due to many peoples trading, this leads to a mass movement in a general direction due to how they feel about the market(sentimental analysis). This leads to movement in price, which results in movement on a trading chart that represents the market conditions and is then read to be understood (technical analysis). As I said before news to sentiment to chart, or chart to news to people, or people to chart to news. Many ways to skin a cat but you must use all three.

You will find many extremists of one analysis over another but remember you must use all generally. Imagine you were only a technical trader and never focused on the news. So we have you looking at the charts only (not saying its wrong) but imagine a scenario where the UK decided to exit the European Union. This would obviously mean less strength for they’re economy meaning general downward spiral of financial securities meaning currency. Lets say a sudden 100 points down. Had you not been watching the news that would have been a 100 pip loss for you not a Gain. So you see all three to be used.

We now move to 3 Types of Forex Charts