In their trading approach, most traders follow one of the following two strategies: technical analysis or fundamental analysis. What does that mean? While fundamental analysis is based on the causes of fluctuating exchange rates, the technical analysis is based exclusively on the development of the course in the past, which attempts to predict the price development in the future. What is at the basis of these influencing factors does not play a role in technical analysis. In this respect, technical analysis is much easier to learn than the fundamental analysis. You simply do not have to know what certain key economic indicators mean and what impact you have on the development of the course, you only have to stay out of the market during your publication and then follow the courses Respond. Both methods have their advocates and opponents, with both methods you can earn a pile of money-or lose. The decision for one method or another is a completely personal choice. If you want, you can also combine both methods to get the best out of both ways. The Anängern of the technical analysis can be roughly divided into four further bearings:
Trailers of charting technology,
Market technology supporters,
Pendant of candle stick analysis,
Followers of indicators and oscillators.
Controlling charting means not only being able to trade forex and CFDs successfully, but also stocks and other asset classes. Investors who carefully analyze their chances and risks before starting up will drastically improve their chances of success. From some investors, chart analysis is often dismissed as esoteric, because supposedly from data that is based on the past cannot be closed to future development. Nevertheless, it is a fact that this technique works. A precise forecast of the future course is not possible with the help of chart analysis, yet investors with a successful application of the chart technology can achieve better results so those that rely only on fundamental data. This is especially true for speculative kurzfrisitigen actions on the market, where it plays an important role in catching the right timing. The chart analysis is used to calculate the probability of the price direction that the course will move into and can guess what other traders will do at certain turning points in the chart. The charting technology also enables a prognosis of the potential target and thus the expected profit. With the help of chart technology, the stop level can be precisely defined, probably the most important function of this approach in trading.