Most people find technical analysis or fundamentals the key of success in forex, they are 2 different things and combining both together is the key for success.
We will get more into detail on each of them in later chapters but for now I want you to keep in mind that you need to combine these 2 things together to predict what will happen next.
Another thing to keep in mind is the sentiment of which the market is heading towards. There are many tiny variables to keep in mind when doing forex.
These tiny movements in the market can cause huge losses and gains, it all depends how well are you tracking the currency market.
In short technical analysis is viewing the tiny changes that happens on the graph and fundamentals is what is going on in the world (news, calendar). Combining these 2 things will define your success in forex.
Most people find technical analyses sufficient to drive gains in the market, however the market will fluctuate or will be very volatile when something happens in the news. This short volatility will change the graph in long term.
Volatility simply mean the movement that happens in the market. A high volatile market means there are lots of ups and downs, a low volatility means there is little movement in the market.
There are certain things in the calendar that defines a huge volatile market, we will get that in details in later chapters. For now, just keep in mind that the trader sentiment, fundamentals and technical analysis defines how market will react.
Keeping track of these short movements will define your overall success in the currency market.
