How to analyse market in trading for beginners
Analyzing the market in trading is essential to make informed decisions and reduce risk. There are three main types of market analysis: ______________________________________ --- 1. Technical Analysis=> This involves studying price charts and indicators to predict future price movements. Key Tools: Price Charts (Line, Bar, Candlestick) Support & Resistance Levels Trend Lines Indicators like: RSI (Relative Strength Index) MACD (Moving Average Convergence Divergence) Moving Averages (SMA, EMA) Bollinger Bands ___________________________________ What to look for: Trends (uptrend, downtrend, sideways) Patterns (head and shoulders, double top/bottom) Breakouts and reversals ___________________________________ --- 2. Fundamental Analysis This focuses on economic and financial factors that affect the market value of assets. For Stocks: Company earnings reports Revenue, profit margins Management and future outlook Industry news For Forex/Commodities: Interest rates Inflation GDP growth ...