📊 Types of Forex Analysis: How to Understand the Market and Make Better Decisions?

To be a successful trader in the forex market, your decisions need to be based on analysis, not luck or randomness. Analysis is your way of understanding market movement and identifying the best entry and exit opportunities. There are three main types of market analysis.

1️⃣ Technical Analysis

Technical analysis focuses on price movement on charts.

The basic principle is: "History repeats itself," meaning that price patterns that occurred before may repeat.

🔹 Its tools:

Candlestick charts

Technical indicators (like RSI, MACD, moving averages)

Support and resistance lines

Price patterns (like head and shoulders, triangles)

🎯 Suitable for day traders and short-term traders.

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2️⃣ Fundamental Analysis

Here we analyze the economic and political factors that affect currency prices.

This analysis answers the question: "Why is the currency moving?"

🔹 Important factors:

Interest rates

Unemployment and inflation reports

Central bank decisions

Political and economic news

🎯 Suitable for investors and medium to long-term traders.