Basic analysis is one of the main methods in trading. It analyzes the economic, political, social and other factors that may affect the supply and demand of assets to achieve the purpose of studying and judging the market situation.
As it is improving, it is continuing to strengthen.
As the U.S. economy improves, if the economy grows too fast or even expands, it may need to be controlled by raising interest rates.
The research object of technical analysis is the market behavior, judging the market development trend, and then formulating the sum of financial derivatives trading strategies according to the change of foreign exchange periodicity.
Technical analysis is mainly based on the history has formed a similar pattern, the belief that the price will repeat the past movement, and then form their own trading views.
However, even if A and B are focusing on the same technical pattern in forex trading, the next move will be different depending on the traders’ own experience.
Foreign exchange sentiment analysis is to judge the direction of the market by analyzing the emotions of traders, because the market reflects traders’ feelings about the market to a certain extent.
Even if you are convinced that the dollar will rise, but the rest of the market is bearish on the dollar, there is little you can do about it.
To sum up, the purpose of the three analysis methods in foreign exchange trading is to solve the same problem and predict the direction of currency price change, but from different perspectives.
Technical analysis is the study of the consequences, basic analysis investigates the antecedents of market movements, and sentiment analysis is the analysis of people’s emotions to find traces of price movements.