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Technical vs fundamental analysis: two ways to read markets

By SendPay Business · · 2 min read

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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

Tap to explore

Tap each one to see what it means.

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.

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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.

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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.

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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.

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How it works

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Questions people ask

What is MACD?

Momentum from two moving averages.

What is MACD? →
What is the stochastic oscillator?

Where a close sits in its recent range.

Stochastic oscillator →
What is RSI?

How the Relative Strength Index measures momentum.

What is RSI? →
What is a moving average?

Simple and exponential averages explained.

Moving averages →
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 →
What is volatility?

How much and how fast prices move.

What is volatility? →

Read next

Spotted a mistake or something out of date? and we'll fix it. How our guides are made

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. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.