Types of Forex Market Analysis
October 16, 2025•1 min read
Currency Strength Meter Team
Forex Analyst & Writer
#forex#technical analysis#fundamental analysis#sentiment
Introduction
Successful traders rely on three main types of forex analysis — each offering unique insights into market behavior.
1. Technical Analysis
Uses historical price data, charts, and indicators to forecast future trends.
Popular Tools: Moving averages, RSI, MACD, Fibonacci retracements.
2. Fundamental Analysis
Focuses on economic indicators such as interest rates, inflation, and employment.
Example: A strong U.S. jobs report may boost USD demand.
3. Sentiment Analysis
Measures trader mood and crowd behavior.
Tools: Commitment of Traders (COT) report, retail sentiment data, or heatmaps.
Combining the Three
Top traders blend all types:
- Use fundamental analysis for direction.
- Use technical analysis for timing.
- Use sentiment for confirmation.
Conclusion
Mastering all three forms of analysis provides a 360° market view — the edge that separates professionals from beginners.
🔹 Key Takeaways
- Use strength meters to spot strong/weak pairs quickly.
- Combine with price action for accurate entries.
- Stay aware of major economic events.
💬 Comments
Comments feature coming soon! Traders will be able to share insights and questions here.