Abstract：There has always been a constant debate among retail traders over which analysis method is superior or “bulletproof”. Truth be told, to be an elite retail trader, you need to know all three of them to be able to form your own sound judgment.
Fundamental analysis is a method of analyzing the forex market by examining the study of economic developments, and social, and political forces that influence currency prices.
Fundamental analysis can help you determine whether a currency is overvalued or undervalued because the markets are always looking ahead. Price forecasting is based on a number of key economic factors and indicators that determine a country's economic strength, such as interest rates, GDP growth, consumer price index (CPI), retail sales, industrial production, and more. A variety of geopolitical factors may also influence the price movement of a currency pair.
Technical analysis is commonly used among retail traders and it could be performed in various ways with the help of indicators, including moving averages, volume indicators, Heikin Aishi candles, and more. Generally, it is based on the idea that through the analysis of historical price movements (that is, changes in prices, volumes, and open interests) over a certain period, one can determine the current and future price movement.
Every market participant has an opinion about the market behaves the way it does and that determines their trading position – whether to go with or go against the market trend.
These thoughts and opinions are influenced by the traders' and investors' positions. In turn, this contributes to the overall market sentiment, regardless of what information is available. Thus, it is safe to say that the market is a grand scheme of collective individual perception of it.
