Hello traders, and welcome to our second tutorial. In this post, I will try to explain why, before trading, it is essential to make a fundamental analysis as well.
What is a fundamental analysis , and how can help you improve your trading strategy?
Fundamental analysis is one of the most widely used methods for estimating price movements of any stock, which essentially analyses the impact of micro and macro-economic factors on the business of the corporation to predict future economic and financial effects.
*Fundamental analysis is a method of determining a stock’s real or “fair market” value.
*Fundamental analysts search for stocks that are currently trading at prices that are higher or lower than their actual value.
*If the fair market value is higher than the market price, the stock is deemed to be undervalued, and a buy recommendation is given.
How to establish if you are in the right reload zone of a cryptocurrency?
Let’s say that you have drawn your fib. Levels and the price is between 0.786 and 0.618 levels ( those are the reload zone levels), how can you be more confident that those levels will hold up? Well, this is why we need the fundamental analysis .
Here is a nice example:
On the chart above we have ARN/BTC pair, and the price is sitting in the reload zone( 0.786 and 0.618 fib. level)
Next, you have to go to oxy.biz and click on the most bought/sold coins.( there is where you can make your fundamental analysis very easy and to the point)
We have made the technical analysis , which indicated that we are in the reload zone by the fib. Levels, plus we have the fundamental analysis by this website: oxy.biz saying that the buyers are stepping in, and the price might move up very soon.
The point is that if you want to have a better success rate for your trading setups, you should take into consideration to make a more in-depth analysis ( both technical and fundamental)
We have a free trial for seven days if you want to give it a try, plus the site has more exciting trading stuff that can help you improve your strategy.
Stay tuned for more tips and trading ideas!
Trade active: As you can see our plan is working really nice for $ARN/BTC. It’s up 8.45% since when we posted this idea yesterday!
Remember: after making your technical analysis, you can do a little fundamental analysis as well using this website: oxy.biz
Until the next update, happy trading!
Trade active: We have reached our main target for $ARN with a nice profit of 17%. This idea was based on the accumulation signal provided by oxy.biz
Our strategy at this point is to sell half here and let the rest for a higher target. You can place your stop loss at scratch, and still, we have made a nice profit.
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