Fundamental Analysis vs Technical Analysis

When it comes to analyzing the forex market, there are two basic schools of thought. One is called fundamental analysis, which is the study of a nation's overall economy. Proponents of this big-picture view believe that price trends can be predicted by analyzing various economic indicators which give an overall picture of an economy's health.

The other school of thought is called technical analysis. The core belief behind technical analysis is that prices tend to follow patterns, and that by analyzing past price patterns one can predict what the price will be in the future.

But which type is better?

Well, to be honest neither. You need to combine both types of analysis to become a successful trader. Limiting yourself to only one or the other is a recipe for disaster.