Fundamental analysis is one of the two primary methods used by traders and investors to analyze financial markets. It involves studying economic, financial, and other qualitative and quantitative factors to determine the intrinsic value of an asset or security. This analysis helps traders to determine the fair value of an asset, and if it is overvalued or undervalued relative to its intrinsic value.

When it comes to identifying high volatility markets, fundamental analysis can help by analyzing economic data releases, such as GDP, inflation, interest rates, and consumer confidence, among others. These economic indicators can impact the value of a currency, commodity, or other asset, leading to increased volatility in the market.