Level: Beginner

In this section, you’ll explore the differences between fundamental analysis and technical analysis. Then, you’ll learn an important concept that traders need to understand—the difference between trending and anti-trending markets.

Contributed By: CME Group

Any thriving marketplace has two types of traders: market makers and market takers.

There are three key features traders will look for when considering entering a new market. Does the market offer a tight bid/offer spread? Is it liquid? What are the trading hours?

Fundamental traders do well when they can recognize the potential for a significant price move toward or away from equilibrium caused by a change in the underlying supply or demand.

Momentum and saturation are key concepts because trend and anti-trend markets are mirror images of one another.

Support and Resistance are common terms that traders use to describe levels where price is more likely to stop moving in one direction or change direction.