Types of Analysis

Introduction

In this section we will we introduce in the existing types of analysis, since you have to present in mind that you will do the analysis, and for that we have to know what kind of types of analysis exist.

You decide what kind of analysis to use, considering that each type of analysis has its advantages and disadvantages. The particular advice that we do it is better to use a mixture of both.

In last sections we have place the example of a balance as a form to measure the economic health of a country against another country, but the measurement is done with respect to the macroeconomic data that release. Essentially a that serious Fundamental Analysis.

In the case of the pair EUR / USD, comparing macroeconomic data arising from the Euro against macroeconomic data from the United States.

We must make a comparison between the two types of analysis, since everyone has a purpose and an end. Each analysis focuses on various aspects we have to consider, because both analyses are influencing each other, and we can see the impact that an analysis can have over another.

As a preliminary step to introduce the technical analysis, we will have to explain the Dow Theory, as it is one of the bases of this analysis. Charles Dow founded in 1,882 company "Dow Jones and Company, a company that edited the Wall Street Journal.

The theory of Charles Dow was reconstructed by people that followed the interpretations that towards on the market during years 1901 and 1902. One of those people was W.P. Hamilton, who was the first publisher of the "Wall Street Journal", that between 1903 and 1929 systematize the ideas of Dow, publishing in 1922 a book about the Theory titled "The Stock Market Barometer"

That theory was booming in the years 1930, when the Wall Street Journal published editorials interpreting the evolution of the stock market based on the Dow Theory. On October 23, 1929, the Wall Street Journal publishes the famous editorial , Turn the Tide predicting - on the basis of Dow Theory - the big drop in the New York Stock Exchange.

This part will be important that you have in mind so that they can understand what we will discuss in the next section. Because in the next section we will be embarking on trends. Every trend has its phases, whether it is a bullish or whether it is a bearish.

But as we move forward we will letting us in more complex terrain, you need clear, the kinds of analysis exist, and what are the advantages of each.

These are the sections that will see in this part: