What is Open Interest and Why Does it Matter?
3 months ago
Analysis comes in two forms – fundamental and technical. Technical analysis (TA) is a trading tool employed to evaluate investments by analyzing statistical trends gathered from trading activity, such as price movement and volume. Technical analysts focus on price movement patterns, trading signals and various other analytical charting tools to evaluate an asset’s strength or weakness and potential next move. Fundamental analysis (FA) attempts to evaluate an asset’s intrinsic value by examining economic, financial, and other qualitative and quantitative factors. The aim of fundamental analysis is to produce a quantitative value that can be compared to the asset’s current price in order to indicate whether it is undervalued or overvalued.