#TradingAnalysis101 Technical analysis and fundamental analysis are two types of analysis used in trading.
Technical analysis
It is based on the analysis of historical price charts and market statistics
It is used to identify investment opportunities
It is based on the idea that prices tend to move in trends
It is used to determine the future trend of a market
It is used to determine potential entry and exit points for each position
Fundamental analysis
It is used to assess the strength of an instrument over a period of time and in the future
It is used to determine if an asset is overvalued, undervalued, or trading at fair market value
It is based on examining related economic and financial factors
Trading is the buying and selling of listed assets, such as currencies, commodities, indices, and bonds. It is usually conducted in liquid and electronic markets and carries high risks.