What is Technical and Fundamental Analysis?

This is a discussion on What is Technical and Fundamental Analysis? within the New to Trade2Win forums, part of the Reception category; Originally Posted by solid2222 That is to say, that all factors which have an effect on the price have already ...

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Old Oct 29, 2015, 9:19pm   #25
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Originally Posted by solid2222 View Post
That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price.
However, many factors have an influence on price that is limited in duration. Such factors ("shocks") can move prices away from equilibrium. One way of trading is to bet on a return to equilibrium. This is the approach of statistical arbitrage, which is what I use.
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Old Oct 30, 2015, 1:31am   #26
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Originally Posted by IFeelFree View Post
FA long term ...
Or exactly the opposite, of course, if you're thinking of entering a forex trade at about 1.25 (UK time) on the first Friday of the month, with the US's NFP figures announcement coming up 5 minutes later, and wisely decide to wait 10 minutes before doing so.
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Old Oct 30, 2015, 3:21pm   #27
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Technical is speculating off historical data. Whether it be patterns, indicators, or some other form of analysis that evaluates historical data.

Fundamental is speculating off future predictions. A fundamentalist would buy wheat futures predicting the price will rise because of higher than average rainfall, or short a currency because of some political influence.
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Old Oct 30, 2015, 7:36pm   #28
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A fundamentalist would buy wheat futures predicting the price will rise because of higher than average rainfall
It could be argued that in practice, that also tends to be based, at least to some extent, on historical experience: typically she wouldn't do that, if higher-than-average rainfall, historically, had usually been followed by a fall in the price of wheat. Both TA and fundamental parameters involve an assessment (whether analytical or intuitive) of the probability of previous and/or current events influencing future developments, and in either case price movements are caused by imbalances between buying and selling pressure.
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Old Nov 2, 2015, 8:12am   #29
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Yes, but fundamental effects do not last long.
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Old Jan 24, 2016, 4:54pm   #30
 
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Excuse me, can you give me some information of market sentiment analysis ?
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Old May 3, 2016, 2:46pm   #31
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Originally Posted by owen88 View Post
How can we combine TA & FA in trading? Support with FA, we know the price would go up but TA tell the opposite, how do we decide?
Eventually will back to your decision, whether will hold your hand and not open trades , or will enforced to open trades based on your analysis, some trader that based on technical anlaysis they will not trade on news high impact because they have reason technical analysis can't work on these time often making price move randomly
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Old Dec 6, 2016, 12:44pm   #32
 
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Fundamental analysis is an approach in which one calculates the value on the basis of economic reports and statistics. On the other hand Technical analysis investments are evaluated on the basis of charts, trends and trading volumes over the time. Fundamental analysis is used by long term traders for holding position days, weeks or even months whereas technical analysis is short-term methodology used to take position for days, minutes or even seconds.
The Best Approach of investing is combination of both Fundamental and Technical analysis.
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