Technical vs fundamental analysis: two ways to read markets
By SendPay Business · · 2 min read
Technical analysis studies price charts and trading patterns. Fundamental analysis looks at the underlying drivers, like interest rates, the economy or a crypto project's use. Many people use a mix, and neither can predict prices reliably.
What each approach looks at
- Technical: price charts, candlestick patterns, trading volume and indicators like moving averages.
- Fundamental in forex: interest rates, inflation, jobs data, trade balances and central bank decisions.
- Fundamental in crypto: how a network is used, its supply rules, its developers and its adoption.
- Both: news and market sentiment, which can move prices quickly.
Strengths and limits
Technical analysis is quick to apply but relies on past patterns repeating. Fundamental analysis explains longer-term moves but can take time to play out. Markets can move against either for a long time.
Why businesses care
Businesses that hold or pay in several currencies watch the same drivers, like interest rate decisions, to plan when to exchange and how much currency risk to carry.
Where SendPay fits
SendPay doesn't offer trading. SendPay platforms let your customers hold GBP, EUR and USD and exchange between them at a fee you set, alongside transfers and branded Visa cards, powered by licensed partners.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
How do I work out the stochastic oscillator?
Our free stochastic oscillator calculator turns high, low and close prices into %K and %D.
Stochastic oscillator calculator →How do I work out the RSI?
Our free RSI calculator turns a list of closing prices into the Relative Strength Index for any period, step by step.
RSI calculator →How do I work out Fibonacci retracement levels?
Our free Fibonacci retracement calculator turns a swing high and low into the usual retracement and extension levels.
Fibonacci retracement calculator →What is a candlestick chart?
A chart showing each period's open, high, low and close.
Candlestick charts →How do interest rates affect exchange rates?
Higher rates can attract money into a currency.
Rates and FX →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.