🧠 *Lesson 2: Types of Analysis in #Trading - How to know when to buy and when to sell?*
To make correct decisions in trading, you need to understand two types of analysis:
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1️⃣ *Technical Analysis*
It is the analysis of price movement using charts (candles) to know:
- Is the price trending up or down?
- When to enter (buy) and when to exit (sell)?
*Its main tools:*
- Japanese Candlesticks
- Support and resistance lines
- Indicators like RSI, MACD
📌 A simple example:
If you see the price touching a support point and bouncing off it every time, this means it is suitable for buying.
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2️⃣ *Fundamental Analysis*
It is the study of news and economic and political conditions that affect the market.
*Examples:*
- If they announce positive news about a company, its stock might rise.
- If a war or crisis occurs, markets might decline.
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👀 Which one should I use?
- Day traders rely more on *Technical Analysis*.
- Long-term investors rely more on *Fundamental Analysis*.
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🎯 *Today's Tip:*
Start learning technical analysis because it gives you clear signals on the chart, and over time combining the two gives you stronger decisions.
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Wait for the third lesson to be about *Japanese Candlesticks?* They are the most important tool in technical analysis.
