There are many tools available which can help traders on their trading activity yet the most popular is technical analysis.
Technical analysis belongs to the use of the charts, line, bars and mostly candlesticks. Charts are accessed through trading platforms, here at us, at Trading Network Webtrader. They help to understand the past patters of the asset’s prices and can make decisions on how the price direction might go in the next days.
Technical analysis has a different logic from fundamental analysis. It is about looking directly at market prices and behavior. On the other side, fundamental analysis includes any research about what drives the markets price. These 2 analyses can be used independently or combine their results together. Some traders prefer one of them, some both of them.
If you are a fan of short – term trading, then you need technical analysis to interpret the current situation of the market and then making decisions for the near future. Always having in mind, the idea of finding a potential move. Technical analysis does not hold all the answers, but it is a great tool to bring amazing useful ideas.
Fundamental analysis uses all the available data to identify the most powerful assets. Where does it base its conclusions? It pays special attention to the release of key economic data and report: GDP data, unemployment rates, interest rates, production data, diplomatic relationships between states, elections, trade wars, other wars.