Combination of different types of analysis - continued Say, currently, you see that the economy turns to recovery and shows signs of strength, you see better and better macro data, crowd appetite for positive data (i.e. sentiment) is growing also and you decide to enter on the market based on this – Sell EUR/USD, for instance. But now the question – where to enter, where to place stop/loss order? How can this be done with fundamental analysis? Of cause, you have a possibility just to enter at market without any stops, but in this case you indeed must have ruby wallet to hold any move against you, and this move could be really solid – remember, you trade long-term. Here is where we come to technical analysis. You can analyze charts and find the area to enter – for example strong resistance level on monthly chart and to place a stop order. Pipruit: Now it becomes much clearer for me. Thanks. I suppose that I should not rely just on one of them. But here I see another major task – I have to learn to balance them optimally to get best results. Commander in Pips: You are absolutely right. Pipruit: And what are we gonna do now? Commander in Pips: Well, in the nearest time we will dedicate lessons to deeper investigation of technical analysis. First, we will take a look at different chart types, and learn how to read them. Then, we will turn to the classical approach to technical analysis – classical patterns, trend lines, support, resistance and a lot of different indicators. After that we will turn to advanced and more sophisticated part of technical analysis – Fibonacci tools, Elliot wave theory, Gartley’s patterns, pivot points and other stuff. And only after that will shift to fundamental and sentimental analysis. Pipruit: All right! I can’t wait no longer – let’s get started! P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.