Sunday, August 22, 2010

Summary of Analysis & Charts


Types of Trading:

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There are 2 types of analysis: Fundamental and Technical
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Fundamental analysis is the analysis of a market through the strength of its economy. (i.e. the dollar gets stronger because the US economy is getting stronger)
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Technical analysis is the analysis of price movements. Technical analysis = charts.
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Technical analysis also helps us identify trends which can help us find profitable trading opportunities.
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To become a successful trader, you must always incorporate both types of analysis.

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Types of Charts:

* There are three types of charts:
1. Line charts
2. Bar charts
3. Candlestick charts
* We will be using candlesticks from now on

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