In the case of strategies based on technical analysis, the trader identifies market patterns. For this purpose, graphical constructions, figures and indicators of technical analysis, as well as candlestick patterns are used. Such strategies usually imply strict rules for opening and closing trades, setting limits on loss and profit (stop loss and take profit orders).
Unlike technical analysis, fundamental analysis is carried out “manually”. The trader develops their own rules and criteria for the selection of transactions, and makes a decision based on the analysis of market mechanisms, the exchange rate of national currencies, economic news, revenue growth and profitability of an asset. This method of analysis is used by more experienced players.
