Use of both FA and TA

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Old Oct 13, 2018, 5:20pm   #1
Joined Sep 2018
Use of both FA and TA

To be honest, I personally think that relying only on the technical analysis canít help a foreign currency exchange trader to take decisions in the desired way he may try to take. As sometimes, very dependence on the technical aspects canít give the overall picture of the trade. By this means it may be wise to take decisions with the use of both the use of fundamental and technical analysis.
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Old Oct 13, 2018, 9:13pm   #2
Joined Feb 2002
Depends on how you trade. When I see my favourite opportunity - to set a buy order after a price recovery after a pull-back in a consistent and established uptrend - what sort of FA would make me not do this?
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Old Oct 13, 2018, 11:17pm   #3
FXX
Joined Oct 2017
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Originally Posted by tomorton View Post
Depends on how you trade. When I see my favourite opportunity - to set a buy order after a price recovery after a pull-back in a consistent and established uptrend - what sort of FA would make me not do this?

I can name several

Upcoming risk event that will likely dampen the prospects of the trade. Money moving players will be on the sidelines if this risk event has any significance

An unscheduled risk off event (but this can change the opportunity by offering a different trade)

Technical traders rarely follow news and will trade what they see. A move in low liquidity or a misleading indication on charts can and does temporarily drive price by enough to trigger technical entries but only to be washed as sentiment asserting fundamentals alters price direction. A breakout of a level turning into what technical traders perceive as a stop hunt.

Lack of risk events (no market moving scheduled news)

There are probably others but I can't think of them right now
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Old Yesterday, 5:57am   #4
Joined Feb 2002
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Originally Posted by FXX View Post
I can name several

Upcoming risk event that will likely dampen the prospects of the trade. Money moving players will be on the sidelines if this risk event has any significance

An unscheduled risk off event (but this can change the opportunity by offering a different trade)

Technical traders rarely follow news and will trade what they see. A move in low liquidity or a misleading indication on charts can and does temporarily drive price by enough to trigger technical entries but only to be washed as sentiment asserting fundamentals alters price direction. A breakout of a level turning into what technical traders perceive as a stop hunt.

Lack of risk events (no market moving scheduled news)

There are probably others but I can't think of them right now

Yes, you can name several, and actually I can name several, but the real question is whether Merk can name any at all.
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Old Yesterday, 6:24pm   #5
Joined Nov 2014
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Originally Posted by Merk Porter View Post
To be honest, I personally think that relying only on the technical analysis canít help a foreign currency exchange trader to take decisions in the desired way he may try to take. As sometimes, very dependence on the technical aspects canít give the overall picture of the trade. By this means it may be wise to take decisions with the use of both the use of fundamental and technical analysis.
Yes because true technical analysis is based on ultra speed and math. You have to be very fast identifying trend an its onset, and it has to rely on sound principles like early signals of volatility, divergence of some indicators like futures volume and option market volatility.

Inefficiency means that some part of traders are systematically slower than other in receiving and using some market moving information.
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Old Today, 8:58am   #6
 
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Everything is Technical Analysis

Quote:
Originally Posted by Merk Porter View Post
To be honest, I personally think that relying only on the technical analysis canít help a foreign currency exchange trader to take decisions in the desired way he may try to take. As sometimes, very dependence on the technical aspects canít give the overall picture of the trade. By this means it may be wise to take decisions with the use of both the use of fundamental and technical analysis.
Using both fundamental & technical analysis means you need to become an expert in two things when you only need one.
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