Fundamental Analysis
Fundamental analysis looks at the economic and financial factors affecting an asset.
Examples:
- Interest rates
- Inflation
- Employment
- GDP
- Central banks
- Earnings
- Economic growth
Technical Analysis
Technical analysis primarily studies market price and related data.
Examples:
- Market structure
- Support and resistance
- Trends
- Candlestick behaviour
- Indicators
- Price patterns
Which Is Better?
There is no universal answer.
Different traders use different approaches.
Some traders focus heavily on fundamentals.
Some focus primarily on technical analysis.
Others combine both.
The important thing is having a clear process.
Key Takeaways
Fundamental analysis asks:
“What is happening in the economy and why?”
Technical analysis asks:
“What is price doing?”
Disclaimer
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
