#TradingAnalysis101 Transaction Analysis 101: What You Need to Know
In financial trading, analysis is the key factor that helps investors make informed decisions. Here are some important analysis methods you need to master:
1. Technical Analysis
• Based on price charts and trading volume to predict trends.
• Common tools: Moving Averages (MA), RSI, MACD, Fibonacci, Japanese candlestick patterns…
• Suitable for short-term traders who prefer trend trading.
2. Fundamental Analysis
• Assessing the financial health of a company, economy, or trading asset.
• Key factors: Financial reports, interest rates, inflation, economic news…
• Suitable for long-term investors.
3. Sentiment Analysis
• Evaluating the general sentiment of investors through news, social media, sentiment indicators.
• For example: VIX index (fear index), unusually high trading volume, breakthrough news…
• Helps identify potential reversal points.
🔹 To trade effectively, you should combine all three methods above to gain an overall perspective of the market. No tool is 100% accurate, so risk management should always be a top priority!
Which method do you usually use? Please share your thoughts!
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