What are fundamental analysis and how we can use those in trading?
Fundamental and technical analysis are opposite sides of the same coin.
Gross domestic product, housing indexes, public sector net borrowing, manufacturing PMI, markit PMI composites, bank quarterly reports, trade balances, foreign investment, unemployment data, new home sales, consumer price indexes, interest rates, and non-farm payrolls are just some of the important characteristics of fundamental analysis.
Technical analysis on the other hand is not concerned with these news reports. Technical traders utilize a variety of charts and indicators including price, trend following, trend confirmation, overbought/oversold, and profit taking tools.
In terms of foreign exchange market, fundamental analysis mainly looks at performance of the relevant economies, as represented by various macroeconomic indicators, such as GDP, unemployment, interest rate and inflation. Conversely, technical analysis posits that all fundamental factors are already priced in by the market and therefore takes into account only historical market data, such as price and volume.
To sum it up, fundamental is all about news and everything that could affect a currency, stock, .. Technical is all about * patterns, etc... But all has been well explained in the first answer, just summed it up and made it easier to understand.
for fundamental:
1
1) value calculated using various economic factors
2) data are from economic reports,news,reports,events,statistics
3) we buy when price is below intrinsic value
4) good for long term positions
for technical:
1) we use price movement and patterns on charts to predict future price movement
2) data are from charts
3) we buy (sold) when traders see a price formation that has a high probability of moving into profit
4) often used by short term trader
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