Three Types of Analysis

What’s it gonna be? The red pill, the green pill, or the blue pill?

3 Types of Forex Market Analysis
There are three basic types of market analysis: technical, fundamental, and market sentiment. Which suits you?

Popular Chart Indicators

What is Technical Analysis?
Technical analysis is the framework in which traders study price movement.

What is Fundamental Analysis?
If you like analyzing social, economic, and political factors that affect currency supply and demand, then fundamental analysis is for you!

FX SIGNALS Average Directional Index (ADX)

What is Sentiment Analysis?

Sometimes it’s not always about the numbers, but how market players feel…how do you figure out and trade forex off of that?

Which Type of Analysis for Forex Trading is Best?
In order to become a true forex master you will need to know how to effectively use these three types of analysis.

Three Types of Analysis

1. 3 Types of Price Charts and How to Read Them

   Sometimes, it’s all about perspective when understanding a market. Different types of charts can influence how you analyze an asset like currencies.

Three Types of Analysis

Dollar edges higher ahead of U.S. inflation data; sterling firms

Average Directional Index (ADX)

The ADX or Average Directional Index is a technical indicator used to measure the overall strength of a trend.

Developed by J. Welles Wilder, the Average Directional Index (ADX) helps traders measure how strongly price is trending and whether its momentum is increasing or falling.

The 3 Types of Traders

It’s important to emphasize that while ADX measures the strength of a trend, it does NOT identify the trend’s direction.

It can be used to find out whether the market is ranging or starting a new trend.

The oscillator ranges between 0 and 100 with high readings indicating a strong trend and low readings indicating a weak trend.

ADX (Average Directional Index)

Dollar edges higher ahead of U.S. inflation data; sterling firms