- Beginner
- Intermediate
- Advanced
- Completion
Related terms
The assessment of news, outside influences, external events, political forces or data that can influence a country’s economy and have an effect on future price movement within the market.
A level where price bounces off of, also known as the ceiling. It works hand in hand with Support as it is the opposite but it does the same thing.
How everyone feels in terms of the market or what a currency pair is doing.
A level where price continues to bounce off of, also known as the floor. It works hand in hand with Resistance.
The study of price action and market structure to form a prediction of which direction the market will move in based on candlestick patterns and previous data.
A tool used to follow the direction of the market by linking the lower highs in a downtrend and higher lows in an uptrend.
A market giving a high volume of trade opportunities.
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BeginnerEarly Stages For Beginners8 Topics
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Forex Terminology11 Topics
- Major and Minor Currency Pairs
- Basic Forex Terminology
- Pips & Ticks
- The Broker & The Spread
- What is a Lot?
- Stop Loss & Take Profit
- Margin & Leverage
- Retracement & Reversal
- When Can I Trade Forex? Sessions - Market Open and Close
- 3 Types of Analysis (Technical, Fundamental, Sentiment)
- 3 Ways a Market Can Go (Up, Down, Sideways)
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Margin & Leverage2 Topics
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IntermediateIdentifying Scams2 Topics
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Brokers for Beginners5 Topics
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Technical Analysis13 Topics
- Types of Charts
- Understanding Japanese Candlesticks
- Candlestick Patterns For Beginners
- Single, Double & Triple Candlestick Patterns
- Support and Resistance
- Confluences w/ Candlesticks & Support & Resistance
- Trendlines
- Counter Trend Trading/ Counter Trend Lines
- Fibonacci
- Moving Average
- Top-Down Analysis
- Fakeouts
- Consolidation Trading (Breakout, Retest, Continuation)
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AdvancedUsing Indicators6 Topics
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Technical Analysis (Part 2)8 Topics
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Market Structure5 Topics
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Fundamental Analysis9 Topics
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CompletionRisk Management for Beginners8 Topics
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Psychology for Beginners7 Topics
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Personal Psychology Questions2 Topics
3 Types of Analysis (Technical, Fundamental, Sentiment)
Now when it comes to the market, there are three different ways to analyze the market and form a bias: Technical, Fundamental, and Sentiment Analysis. Technical analysis helps us remember areas price was affected by in the past via chart patterns. In doing that, it helps us visualize the overall sentiment of the market, which overall is affected by fundamental factors. This is where we really start to dive deep on how the market works. One is never deemed more important than the other although a lot of traders pride themselves on ignoring fundamentals and referring to themselves as technical traders; you need to fully understand how all three work together as they go hand in hand.
Technical Analysis
Technical Analysis is how we study a currency’s price movement based on what it did in the past. Basically, it’s everything you look at when viewing a chart, including: candlesticks, market patterns, trendlines, and so on! (We’ll dive deeper into them in the technical analysis section). With this type of analysis, you can look at the current market conditions and based on previous price movements (last week/last month/last year) it can allow you as a trader to determine what direction price may be headed in.
Fundamental Analysis
Fundamentals are a little more tricky than Technicals. They are completely driven by politics, and has everything to do with how a country’s economy is doing. This is probably THE ONE section that new traders feel they don’t need to worry about, which is completely FALSE. They play a HUGE role in market direction, which is why as traders it’s important to stay up to date with what’s going on in the world. Yes I know for many, news can be quite boring, but sometimes you just have to suck it up, especially if you want to understand this market and potentially be successful.
Essentially, strong fundamentals would mean price will be pushed in a certain direction depending on what news announcement just came out. If a country’s economy is good, their currency is higher in value. Oftentimes you will notice price struggling to break through a key level (support/resistance), which in turn could mean price is waiting on a Fundamental announcement to break that barrier. The goal is to find trades where the technicals reveal exactly what the news is saying or for the technicals to show a preview by slowly starting to head in a certain direction, and the fundamentals just pushes it further.
The market is SUPER volatile when news comes out. For example:
Price may have news the first Friday of every month (NFP) at 8:30. Traders across the world know the spread of all pairs will be widened and the market will fluctuate both ways before heading in an overall direction. Trying to trade the news can be very scary because you never REALLY know where price is going to go. Trading on a regular day that doesn’t involve the news, even though you STILL never really know where it’s going, you can be confident that price won’t just jump 100 pips in 5 minutes. With news, that exact thing can happen. It can bring quick and large gains but it can also bring quick and large losses.
Sentiment Analysis
SENTIMENT analysis has everything to do with how YOU, all the other traders, the analysts, and social media are FEELING.
Unfortunately, as retail traders it really doesn’t matter what our thoughts or opinions are, the market will always do what it wants. Our goal is to interpret what the market is presenting to us. You could say the market always finds a way to humble you at some point or another. Things won’t always move in our favor, which is why we need to make sure we incorporate all three analyses in our trading.