Types of analysis

   OK, after we have learned how to put our feet on the first step of the stairs, we have to know when to buy and when to sell, actually this is the base on which all types of analyzing the market are based on, because if you knew the proper points of buy/sell you will make profit, that's easy.

Main techniques of a analysis

(1) Classical analysis             (2) Fundamental analysis             (3) Wave analysis

   We will give a short note about each method just to be oriented to the following information;

(1) It is the most used one, and among the most successful and easy methods too, it is concerned with using support & resistance points, trend lines, Fibonacci, price channels moving averages, indicators...etc (we will know each later on)

(2) It is the method which giant traders use, also big companies, institutions and banks depend on it, it is concerned with the economic news revealed by important people or in newsletters.

(3) It is a special type of analysis based on specific patterns which are known to be repeated in the market, they were first recognized by the great sir Ralf Nelson Elliott in 1930's & it depends on what happened in the past, and thought it will be repeated in the future.

N.B:- You can use either of the previous methods, or use a combination or even use them all, it is up to you, this depends on the trader's ability to understand each method and deal with it well, sure if you are perfect in 2 it will be better, because your image (view of the market) will be larger.     

In the next lesson we will start to explain the public classical analysis and how we benefit from it, now waiting to hear any questions..

Regards.