There are three lenses for looking at any market.
Technical analysis
Studies price charts: levels, trends, patterns, indicators. It assumes the chart already reflects what everyone knows. Most of this school is technical.
Fundamental analysis
Studies why a currency should move: interest rates, inflation, growth, politics. It tells you the big direction.
Sentiment analysis
Studies the crowd: are traders mostly long or short? Fearful or greedy? When everyone is on one side of the boat, it tends to tip.
Wick says
Think of a road trip. Fundamentals pick the destination, technicals pick the route, sentiment tells you about traffic.
Key takeaways
- Technical = when and where; fundamental = why; sentiment = who.
- Most traders lead with one and use the others as filters.
- Agreement between lenses = higher-quality trades.