Sentiment Analysis – is a study of a market behavior and reactions excluding price actions. Based on a major technical or economic indicator, traders may enter the market and affect the volume of trade. A sentiment analyst will look at this volume and determine in which direction the weight of money is flowing and consequently can reveal what market believes is going to happen. The difference between fundamental or technical analyst and sentiment analyst is that the latter looks at what the indicators actually do to the market as each unique market situation unfolds.
In conclusion, if you are wondering which method is the best, the answer is learning all the methods in depth and combining them to trade is the best way to go. Of course, you can choose to mainly look at technical or fundamental indicators, but always keep in mind that there are other factors that could affect the price and volume of that currency.
If you would like to test any one analysis on a demo or live account, we offer list of safe and regulated forex brokers you can choose from. Don’t forget to compare their trading conditions on our broker comparison table to find the broker that suits your trading style the best.