TopicBeginners in the World of Currency Trade
Both of these approaches to market forecasting attempt GPS Trader to solve the same problem; to determine the direction prices are likely to move. They just approach the problem from different directions - the technical trading method focuses more on the value history and uses the current value of a currency in a pair referenced again historical trading ranges and value to give an indication of the likely change and new value that a currency will have in the near future. Currency charting in graphical format is the primary tool. Fundamental trading looks primarily at the primary real market conditions that should determine a currency value now and overlays that assessed 'real world' value on the current market value to see how out of sync the values are, thus indicating an adjustment value change that can be exploited. The other way of trading successfully is using automated forex trading where calculating market trade positioning is done for you.
Put simply, a fundamentalist studies the current cause of (future) market movement, while a technician studies the (historical) effects and hence can focus on market 'psychological' resistance indicators that appear in the past trade charts. Most market traders classify themselves as either technicians or fundamentalists. In reality, there is a lot of overlap between the two. Most fundamentalists have a working knowledge of the basics of chart analysis. At the same time, most technicians have at least a passing awareness of the fundamentals.