qualitative analysis
Securities evaluation using subjective, non-quantifiable information.
This type of analysis is used especially often with respect to stock. In qualitative analysis information such as management, industry cycles, strength of research and development, labor relations, customer loyalty, and brand value leads to an assessment of the value of a security that is non-numeric. Quantitative analysis is the more frequently used of the two, although using qualitative analysis in addition is greatly enhances investor insight into a company. Qualitative analysis may also refer to the evaluation of a set of important factors in terms of their presence or absence, but without precision in terms of size or degree.
In terms of forex trading, qualitative analysis would involve relevant influences on the nature of the valuation of a currency such as government policy or legislation, as opposed to quantitative methods such as technical analysis.
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