Technical analysis studies price and volume to infer probable behaviour. It works because market participants leave footprints. Fundamental analysis studies economic data, rates and news to gauge a currency's value.
For beginners in a prop evaluation, technical analysis is usually the more practical lens because it can be applied consistently and scored against rules.
Fundamentals matter for events: rate decisions, inflation, employment. Even if you trade only technicals, you should know when big news lands and how to handle it.
Pick ONE approach and be consistent. A strategy that says 'I trade breakouts on the higher timeframe with a fixed risk' is more repeatable than 'I mostly trade what looks good'.
Consistency is exactly what an evaluation grades. A repeatable process is worth more than a lucky series of trades.
Takeaways
- Technical analysis reads price/volume; fundamental analysis reads economic data and news.
- Beginners in an evaluation are usually better served by a consistent technical process.
- Pick one approach and apply it consistently - consistency is what is graded.
Self-check
Which is more repeatable for evaluation purposes?
A documented strategy you apply consistently, rather than an improvised 'what looks good'.
Trading involves risk. Educational only, not advice. Mark it complete to bank progress.