What is Signal Chart?
One of the methods used by money and capital market players, that is, individual and institutional investors trading in the market, is fundamental analysis. Technical analysis methods used for short-term decision making on the contrary, medium and long-term decisions are generally made using basic analysis methods. This method is of course also valid in the Forex market. In the Forex market, where many pairs are traded with leverage, what currency investors using these methods, they can predict which unit will gain value and which will lose value. With basic analysis methods, using data that affects the currency of a country, at what price level in the future can be estimated. Some of these data; They are macroeconomic data such as inflation in a country, policy rate applied by the country or current account deficit / current surplus data of the country. Not only economic data, but also a country's political and political developments are included in the scope of fundamental analysis and cause positive / negative effects on the currency of the relevant country.
It is a concept used not only for Forex markets but also for all financial markets. Technical analysis can be explained as being able to predict future price movements by looking at past price movements. It is an analysis method that investors use a lot, especially in markets with high volatility such as Forex. Compared to basic analysis, more rational results are obtained and because it is based on historical data. It can be said that it gives reliable results. However, the answer to the question of technical analysis or fundamental analysis, both at academic level and in the markets, is not certain.