Analysis
What Is Market Analysis?
A market analysis is a qualitative and quantitative evaluation of the external market and your internal resources. Thorough market analysis adequately assesses opportunity, value, risk, competition, and economic conditions, helping you make better decisions and improve your success as a trader.
What Can Market Analysis Do For You?
Market analysis is useful for forecasting future prices of an underlying asset based on past patterns and trends. It provides valuable information before making decisions by examining the economic, political, and social forces that may impact assets.
Analysis Types
Technical Analysis
Technical analysis involves examining historical data of assets to identify patterns, how they repeat, when they repeat, and why the asset exhibited that behavior. This enables traders to make accurate predictions about the asset’s near future price.
Fundamental Analysis
Fundamental analysis assesses the impact of financial events and news on the prices of financial instruments. For stocks, it considers public data such as revenues, earnings, future growth, and return on equity to determine the company’s future potential. Tools like the Economic Calendar notify you of upcoming financial events.
Sentimental Analysis
Sentimental analysis measures a trader’s attitude toward financial markets in general or specific instruments in particular. Long-term market performance is influenced by willingness to invest or refrain from investing. Sentiment analysis also considers the general public’s opinions, feelings, or approaches that shape market psychology.