Fundamental – A vital part of the Binary Option Strategy
The financial market analysis is incomplete without verifying the importance of the two major levels of analysis: Fundamental and Technical. The past experience tells us that fundamental analysis was more effective in predicting trends which go on for more than one year, while technical analysis was more acceptable for shorter time spans ie 0 to 90 days. The two analyses combined with the binary options that are available, enables the binary traders to come to a binary option strategy, which helps him to move ahead.
The practical market scenarios show that both technical and fundamentals co exist and that technical analysis of long-term trends helps identify technical "waves" which are long term based, and that fundamental factors do bring in developments which would not last long, but would be short-term. All this are vital in forming binary option strategy. One can cite the 1999 example when the exchange rate of USD/JPY was declining. Both the currencies had lost 16% in the second half of the year, showing 101.90 – the lowest of the year.
The analysts used both levels of analysis – the fundamentals and technical to explain the downward trend. Thus, both technical and fundamentals conclude their analysis and estimations quite similarly. The analysts use different ways but draw similar conclusions. The fundamental and the technical analysis are both different, in comparison to each other. Yet, a large number of traders take help of both the approaches, spontaneously to gauge the market behaviour along with the binary options that already exist.
The traders who believe in fundamentals are often trying to find out the different support levels – be it major or minor, and try to determine the level of the downward trend and the different formations. There is no specific methodology for figuring out how best both the approaches can be combined – fundamental and technical analysis, but both are vital in analyzing the market as a whole. They further argue that there is nothing new to learn anything new about a company by analyzing its fundamentals, but that binary options strategy adopted would be more beneficial.
Fundamental analysis is more theoretical than practical. Here is where binary options used gains more mileage as they are formed on the current state of the market.