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

想進行練習嗎?到模擬交易使用我們的贈金

5000 USDT
聯繫我們
twitter Telegram

Technical support: [email protected]

風險提示 該公司為客戶提供的金融產品,包括差價合約(“CFD”)和其他復雜的金融產品。差價合約交易具有高風險性,因為槓桿可能會對您的資金狀況產生積極和消極的影響。差價合約交易並不適合所有投資者,因為可能導致投資資本的完全虧損。不要投資超過您能承受的範圍。在開始復雜的金融產品交易之前,請務必閱讀有關所有風險。

© 2019 Bex500. All rights reserved.

登入
谷歌驗證

忘記密碼? 找回谷歌验证

還沒有帳號?立即註冊
找回密碼
60秒後重新獲取
獲取
註冊帳戶
60秒後重新獲取
獲取
服務條款隱私政策
已有帳號?立即登入