What is techincal analysis? If you look to wikipedia description goes something like: Technical analysis is a security analysis discipline for forecasting future price movments with past market data, especially price and volume.
What is fundemental analysis? Fundemental analysis is a analyisis based on analyzing company financial statements, management, competitors and market conditions. Fundemental analysis for curencies consists of:
country economic reports, interest rate policy, monetary policy, trade flows.
Techincal analysis is the key for making a well defined trading strategy. With technical analysis you can set your entry points, exits points in both direction (profit or loss) and you can avoid making emotional decisions during market time.
Forex traders usually follow technical analysis when they are making decisions what to buy and what to sell. People who use technical analysis usually say that all fundemental data is included in price of the stock or currency pair, so there is for spending time study fundemental data. People on both sides think their side is better. I think that combination of both works the best.
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