FAQ What is Technical and Fundamental Analysis?

radex78

Active member
Jan 29, 2011
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#31
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
 
Nov 5, 2016
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#32
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.
 
Apr 19, 2017
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#33
Technical analysis means trading or forming a strategy on the basis of historical price movements, shape of candles. It involves pattern recognition on the price chart. On the other hand, fundamental analysis involves taking into consideration economic factors and assessing them to the best advantage. Fundamental analysis involves reviewing the economic & political factors that affect the currency movement. However the best trading strategy can be form by combination of both the trading styles.
 
Apr 18, 2017
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#34
I also agree with the previous comment that the best trading strategy can be form by the combination of both the technical & fundamental analysis. Both have their own relevance and any one of them can’t be ignored.
 
Jan 28, 2017
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#35
Fundamental analysis:
Trade the market based on Geo-Politics, economic situations and news releases comes under Fundamental analysis.

Technical analysis:
Trade the market based on indicators, charts and candlesticks comes under Technical analysis.
 
Sep 13, 2017
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#36
Fundamental Analysis practitioners tend to focus on economics, for eg, company economics in the case of equities speculators or national and international economics in the case of currency speculators. The equities camp study things like company debts, earnings and cash flow whereas the forex camp study things like inflation, interest rates, GDP growth and trade balance sheets, etc. All of these economic indicators helps to determine the value an instrument such as a specific stock or a currency pair (for eg, Vodafone is an instrument in the UK equities market and $USD/$GBP is an instrument in the Forex market) in order to find out the future prospects. If a share or currency looks cheap in the present day and all the indicators are suggestive of the fact that it would be more valuable in the future then Fundamental Analysis practitioners would definitely buy it.
 

june_girl7

Active member
Apr 9, 2016
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#38
Basically, you invest based on fundamental analysis but trade on technical analysis. The best way to get an idea of market trend is to use past price movement analyses.
 

hatemypips

Active member
Nov 11, 2014
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#39
Basically, you invest based on fundamental analysis but trade on technical analysis. The best way to get an idea of market trend is to use past price movement analyses.
Yeah that's great insight, I think fundamental analysis is more applicable to long-term trading, while technical analysis help to spot the trend at it's initial stage.
 

hatemypips

Active member
Nov 11, 2014
224
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#40
Technical analysis - easier to automate compare to Fundamental analysis...
Easy to automate - easy to lose. Know what you're automating, if its about drawing bollinger bands and placing trade then it's not a good idea