Signed in as:
filler@godaddy.com
Two Types of Chart Analysis
Technical vs. Fundamental Analysis
In day trading, there are two primary forms of market analysis: Technical Analysis and Fundamental Analysis. Traders often debate which approach is superior—some rely exclusively on technicals, while others depend solely on fundamentals. The truth is that the most successful traders in the world recognize the value of both.
Technical Analysis
Technical Analysis focuses on price movements, chart patterns, and market structure to anticipate future price direction. Technical traders tend to take shorter-term positions, such as day trades or swing trades, because their decisions are based on immediate price behavior rather than long-term economic trends. This style of analysis does not rely on news or economic reports—it strictly evaluates what is visible on the charts.
Fundamental Analysis
Fundamental Analysis centers around economic data, financial reports, and major news events to forecast long-term market direction. Fundamental traders typically hold longer-term positions, as their strategy relies on assessing the overall health and performance of an economy or market. This approach requires staying up to date on economic releases, geopolitical events, and macroeconomic conditions.
How The Foxx Fund Operates
The Foxx Fund incorporates both forms of analysis but primarily bases trading decisions on Technical Analysis. Our strategy relies on price action, chart structure, and key indicators to determine likely price movement. We monitor only high-impact economic events—such as Non-Farm Payrolls, GDP releases, and Trade Balance reports—to avoid trading during major volatility spikes and to stay aligned with market sentiment when necessary.
INDICATORS ON CHARTS
In the chart above, you can see a candlestick layout with a red and green line moving along the price action. This line is an indicator—a tool applied to charts that uses built-in calculations to help identify potential market direction. With the right combination of indicators, technical traders can improve the accuracy of their predictions and gain clearer insight into where price may move next. Nearly all professional traders use indicators as part of their decision-making process when determining whether to take a buy or sell position.
What kind of Trader will you be?
As you begin your trading journey, there are several important questions you should ask yourself. One of the most crucial is: How much time can you realistically commit to trading each day, week, or month? This includes chart analysis, backtesting your strategy, reviewing performance, and staying aware of relevant news if you incorporate fundamentals. The amount of time you can consistently dedicate will largely determine the trading style that best fits your lifestyle.
If you have plenty of time to spend in front of the charts, day trading may be a good fit, as it involves entering and exiting positions within the same day. If you have moderate availability but still maintain a full-time job, swing trading—holding trades for several days—may align better with your schedule. If your approach or availability is more long-term, position trading may be ideal. Understanding this upfront is essential, as it will guide the timeframes you analyze, the strategy you build, and the pace at which you trade moving forward.
