3 Types of Market Analysis, fundamental to profits

  3 Types of Market Analysis, fundamental to profits


We are in the market for money. To maximize your gains and reduce losses to its minimum, traders need to apply “analysis” to each decision-making. 

There are 3 types of market analysis:

1. Fundamental Analysis 

2. Technical Analysis

3. Sentiment Analysis

There is no certainty which one is more important. no doubt you can boost your chance to profits if you do your research in aforementioned analyses.


◆ Fundamental Analysis

Fundamental analysis is about examining factors that may affect the supply and demand of an asset.

When it comes to Forex market, the factor could be economic, social, and political forces. Other factors such as GDP, inflation rate, and so on hold importance for Forex and commodity traders as well.

However, when it comes to crypto market, people find it more complex to evaluate, which, unlike other assets, does not generate revenue, create numbers or have a balance sheet.

As a result, traders developed a new set of metrics which apply to crypto currencies, such as

1. Unique Addresses

2. Transaction Value

3. Mining Cost

For example, if we see the “Unique Addresses” is going down, chances are the value of network will go down.

3 Types1.png

From Blockchain.info

Of course, that is not the whole picture. We will later on dig into the indicators above and other factors that affect crypto, forex and commodity market.


◆ Technical Analysis

Technical analysts believe that what happened in the past will influence future market movements.

If all the factors have been reflected in the price, then theoretically the “candle stick chart” is all you need to make a trade.

Support and resistance levels are used to determine whether to buy or sell an asset. 

For example, the price had nearly trouble breaking these levels, which gives us an alert when the future prices come near the position.

02-3 types.png

Given the high volatility experienced on cryptocurrencies in the past few years, T.A is quickly growing in the field of digital asset trades.

However, T.A does not offer you a full picture, unless combined with Fundamental Analysis and –

 

◆ Sentiment Analysis

The scenario must be quite familiar: you have done your homework in fundamental and technical analysis, which shows an up-trend, somehow, the asset remains down. 

Why?

The reason: Panic? Bad mood?

It is called “sentiment”. Although subjective, it can move the prices away from its fundamental values. 

These three analyses are intertwined with each other. Fundamental factors can affect sentiment, which is reflected on the candle stick chart.


We will in later chapters elaborate on these 3 analyses for you. Stick with us, to be a better trader!



Demo

더 연습하고 싶습니까? 우리의 선물로 데모를보십시오

5000 USDT
연락 주세요.
twitter Telegram

Technical support: [email protected]

리스크 알림 이 회사는 고객에게 제공하는 금융 상품은 가격 차가 계약 (“CFD”) 과 기타 복잡한 금융상품을 포함합니다. 차가계약 거래는 높은 위험성을 갖고 있습니다. 지렛대가 고객님의 자금 상황에 긍정 또는 부정적인 영향을 미칠 수 있기 때문입니다. 차가계약 거래는 모든 투자자에게 적합하지 않습니다. 투자 자본의 완전 손실이 발생할 수 있기 때문입니다. 고객님이 감당할 수 있는 범위를 초과 투자하지 마세요. 복잡한 금융 제품 거래를 시작하기 전에 리스크에 관한 모든 내용들을 반드시 읽어보십시오.

© 2019 Bex500. All rights reserved.

로그인
구글 검증

비밀번호 잊었나요? Google 인증 검색

아직 계정이 없나요?즉시 등록
비밀번호 찾기
60초 후 다시 가져오기
얻다
계정 만들기
60초 후 다시 가져오기
얻다
계정이 있습니까?바로 로그인