Fundamental VS Technical

The two most common strategy are fundamental analysis and technical analysis.

Fundamental analysis concentrates on the forces of supply and demand for the currency. This examines all the factors that determine the supply and demond of a security like inflation and interest rate.

Technical analysis use charts and indicators to forecast the future price of the currency. The most popular method used in this analysis is support and resistance, bollinger band, moving average, momentum, stochastic oscillator and indicator such as MACD. Moving Average is the average closing price. They also look at pattern at chart like the popular head and shoulder.