Fundamental analysis is a comprehensive analysis, but also includes different types of analysis as sub-branches. In order to understand fundamental analysis, if we make it simpler in the first place; as a result of local or global news and developments concerning financial markets; It is an analysis of what news and what markets are buying. In line with this fundamental analysis, we can best understand whether the expectation is bought or not by making a technical analysis. Fundamental analysis alone is insufficient.
Once the fundamental analysis is done, we must paste technical analysis and price action analysis on it. As a result of the consistency of these three analyzes, it is the most ideal to make investment decisions.
Technical analysis enables us to make future predictions about the direction of the price by opening the price chart of a financial instrument, looking at the historical price data, with the help of some drawings and mathematical indicators. As a matter of fact, it is not enough with technical analysis and fundamental analysis. It would be correct to stick price action analysis on top of fundamental and technical analysis.
Price action analysis is an analysis with the help of candlestick charts. It is an analysis method that can detect the exchange traffic between buyers and sellers, supply-demand regions and which side is more dominant with the help of candlesticks. Professional traders often include price action analysis in their trading systems.
To better understand fundamental analysis, technical analysis and price action analysis, let's take the following example: fundamental analysis, technical analysis and price action analysis were walking together on a deserted land. They saw a house 500 meters away and began to talk among themselves whether there were people living in this house or not. Fundamental Analysis said: "There is a water source near this house. So there are people living in this house." Afterwards, it was Technical Analysis's turn to speak, and he said: "The windows and door of this house are new and according to its dimensions, they were made with modern architecture. Therefore, there are definitely people living in a house built with such care." After this statement, it was Price Action Analysis's turn to speak and he said: "Smoke comes out of the chimney of this house. There are definitely people living here."
That's how important and clear the price action analysis is, referring to the above short story. There are always possibilities in financial markets. Fake movements can happen all the time, but in terms of percentage consistency, price action analysis is highly consistent. Of course, the ideal is to use fundamental analysis, technical analysis and price action analysis together, as we said at the beginning.
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