Role of technical and fundamental analysis in the success of F&O trader?
Technical and fundamental analysis can both be used to give a trader an edge over their competition. These two approaches to the market are often used to complement each other. Technical analysis is used to determine the market sentiment while fundamental analysis is used to determine the likelihood of price moving in a certain direction. What is technical analysis? Technical analysis is a trading strategy in which traders analyze market data through charts in order to forecast future price movements. Technical analysis is based on the theory that market prices reflect all relevant information, so therefore past prices can be used to predict future prices. Technical analysis is an umbrella term that refers to a variety of different analytical methods that traders may use to forecast the future price direction of a stock. There are two main types of technical analysis: chart patterns and technical indicators. Chart patterns are formed from the visual observation of...