
Market analysis involves examining economic, financial, and qualitative factors to understand market trends and make informed investment decisions. It includes fundamental analysis—evaluating company earnings, industry conditions, and macroeconomic indicators—as well as technical analysis, which studies price charts and trading volume patterns. Traders use market analysis to identify potential opportunities, assess risk, and time entries and exits. Tools such as moving averages, support/resistance levels, and economic calendars support this process. Effective market analysis fosters a strategic approach, helping investors navigate volatility and align their actions with broader market dynamics. It is a foundational skill for both short-term traders and long-term investors seeking to enhance decision-making through data and context.