Continue reading...In my 10+ years experience in the Forex trading industry, one of the most common debates I’ve seen traders engage in is fundamental analysis vs. technical analysis. Which one is better? Which one should be used for trading?
For me, it’s a no-brainer: the answer is both. Even if you are an intraday trader trading off the tiniest moves in the Forex market, having some idea of the fundamentals can alert traders to changes in regulations that effectively alter the game. So, at the very least, fundamentals are important because they may affect regulation, which affects all traders regardless of their approach. Because traders need to be aware of regulatory changes that inherently alter the game of trading, they will benefit from monitoring fundamentals in some way.
For trend-following traders who do not trade intraday but rather hold positions for days, weeks, or months at a time, being fluent in both fundamentals and technicals is even more important. Below is a step-by-step approach...
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