When it comes to analyzing markets and assets fluctuations, there are two types of analysis, technical analysis and fundamental analysis.
Technical analysis focuses solely on how price moves: direction, momentum, likely support and resistance, timing of likely reversals, patterns, etc.
Fundamental analysis focuses on what drives price movements.
In other words, technical analysis focuses on what price is doing, and fundamental analysis attempts to understand why it is moving that way.
Fundamental analysis attempts to identify all the economic, social, and political forces that affect supply and demand for an asset, and ideally, use them to forecast its future price.
In the following days I will post some guidelines on how to combine the two forms of analysis when preparing for trading.