Fundamental Analysis or Technical Analysis?

earlchristensen

Junior member
40 4
Where both fundamental analysis and technical analysis work great in forex trading, do you believe that one of them is better than the other? Frankly, I use technical analysis more because it takes less time but I am well-versed with the advantages of using fundamental analysis also. What do you use more often?
 

tomorton

Legendary member
8,418 1,342
I use TA for all trade entry and exit decisions.

Obviously, these are impacted by the current set-up of that pair's chart but also related charts featuring the same currencies or correlating currencies. In that sense, my TA-based trading responds to FA developments which are reflected in price movements.

I think TA is completely adequate as long as you don't simply focus on the one chart that has your favourite entry pattern.
 

Marcellus8610

Junior member
24 6
I have been trading based on fundamental analysis for a long time, my trading system was set up for long term trades. But now I have developed a new system and am completely satisfied with its performance on short and medium time frames. Nevertheless, experience with fundamental analysis helps me a lot where technical analysis can be inaccurate.
 

Henow1969

Well-known member
302 37
A fundamental is important, but it takes a lot of work to learn. A fundamental isn't only for news trading. Fundamentals tell us what the currency's future will be like.
 

earlchristensen

Junior member
40 4
I use TA for all trade entry and exit decisions.

Obviously, these are impacted by the current set-up of that pair's chart but also related charts featuring the same currencies or correlating currencies. In that sense, my TA-based trading responds to FA developments which are reflected in price movements.

I think TA is completely adequate as long as you don't simply focus on the one chart that has your favourite entry pattern.
One should not have any favourite. Technical analysis is about probability. If something works more often in the past that doesn't mean it will work everytime right?!
 

earlchristensen

Junior member
40 4
A fundamental is important, but it takes a lot of work to learn. A fundamental isn't only for news trading. Fundamentals tell us what the currency's future will be like.
I feel fundamental analysis is good for long term trades as it requires in-depth study of economic conditions and factors that play a role in currency's movement but analysis for short term trades can be done well through TA.
 

sebking1986

Active member
190 65
Personally I find news events to be drivers that support or reject my technical analysis. They go hand in hand and ignoring either will blind you from the bigger picture.
 

tomorton

Legendary member
8,418 1,342
One should not have any favourite. Technical analysis is about probability. If something works more often in the past that doesn't mean it will work everytime right?!
Same can be said for fundamental analysis depending on desired holding time. I actually think our view of many investments are incorrect. We've been conditioned by the industry to consider any position with a duration of up to a few weeks as a trade and anything longer as an investment.

Actually I think there is only one time horizon for investments and it is 30 years. But the target is to hold it until retirement age and send the bulk of it on to your children. On that sort of basis, a lot of FA concerning the investment is going to be obsolete long before it is crystallised. Which makes it a probability game, no better than trading off a chart for the the next 3 days.
 

earlchristensen

Junior member
40 4
Personally I find news events to be drivers that support or reject my technical analysis. They go hand in hand and ignoring either will blind you from the bigger picture.
News trading should really be an integral part of your forex trading. I don’t understand how some traders do it without paying much attention to the economic news.
 

earlchristensen

Junior member
40 4
I use TA for all trade entry and exit decisions.

Obviously, these are impacted by the current set-up of that pair's chart but also related charts featuring the same currencies or correlating currencies. In that sense, my TA-based trading responds to FA developments which are reflected in price movements.

I think TA is completely adequate as long as you don't simply focus on the one chart that has your favourite entry pattern.
I think that’s a personal choice and investment should not be necessarily that long. Not every investor wants to save it for their children only, some want to use that money to enjoy their lives as well.
 

tomorton

Legendary member
8,418 1,342
I think that’s a personal choice and investment should not be necessarily that long. Not every investor wants to save it for their children only, some want to use that money to enjoy their lives as well.
I believe their personal choice is wrong. I say that investment for less than 10 years is not an investment, its a trade. And its a rubbish trade.
 

MariaRose

Junior member
28 3
According to me both technical and fundamentals play imprtant role unless you are a scalpler on very short timer frame. Major economic events play a crucial role for swing and positional traders.
 

Jungletrader

Member
80 12
Technicals will give you a sense of direction bias for your entries and exits.
Fundamentals are the drivers behind some of these moves that may completely alter Markets
 

earlchristensen

Junior member
40 4
Technicals will give you a sense of direction bias for your entries and exits.
Fundamentals are the drivers behind some of these moves that may completely alter Markets
Or we can say that with technical analysis, you get to know about the price movements and with fundamental analysis, you get to find out why these price movements are taking place.
 

earlchristensen

Junior member
40 4
According to me both technical and fundamentals play imprtant role unless you are a scalpler on very short timer frame. Major economic events play a crucial role for swing and positional traders.
Yes, right! It isn’t logical enough for scalpers to spend a huge amount of time analyzing the market. This could lead to them missing some of their potentially good trades.
 
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