Technical and fundamental analysis

[Ivo Zetticci]

The analysis gives a high probability to predict future price action in the market. There are two types of analysis in the market. Technical and fundamental. Traders most often ignore fundamental analysis and focus only on technical analysis. Fundamental analysis is equally important in the market. There are many sites and broker like Eurotrader provide an economic calendar to follow important news release.

 

[cmoneyspinner]

When my late husband and my son were both learning trading they liked to focus on technical analysis. The reason I know about fundamental analysis is because I used to listen to the business new reports when we had cable TV on MSNBC or CNBC (I forget which). There was a report that many successful business people prefer to rely on the fundamental analysis. I say … whatever works for you that you understand … use it! If and when I get started, I think I would like fundamental analysis.

Fundamental vs. Technical Analysis: What's the Difference?

Fundamental analysis and technical analysis are major ways to analyze the financial markets and individual securities. Here are the main differences between the two.

www.investopedia.com

 

[George10640]

Personally I dont focus on fundamental analysis too.I just have major news report to follow. When those major events are happening I make sure that am not in the market at all .I think having fundamental to follow will take much of my time and sometimes cannot understand if it can impact my trade.Reason I dont follow, I trade the daily chart only.Having that timeframe to trade those news can't impact to my trades.The smaller timeframe traders are always affected a lot by news and that's why I avoid a lot.

 

[Samuelkanu]

I never took fundamental analysis as being important in forex trading until the Euro debacle involving the Swiss franc. What happened was unprecedented to me in forex trading. Since then I've learnt to take fundamental analysis very seriously because its effects can be very devastating. I lost an account that I built over a year and all my investments disappeared within a twinkle of an eye. Since then fundamental analysis is first before technical.

 

[btaliat]

To be candid, it takes few or no trader to do crypto and forex without being relied on technical and fundamental analyses. These are the guidelines and the yardsticks to follow if truly one to make a huge amount of money.

While the technical analysis involves reading charts and using candle pattern to determine the direction of a coin, fundamental analysis involves reading the news or depending on the happenings in the market to determine the direction of the coin.

Most time, some traders combine the two which to me it is the best. This is because in most cases, the two always work in s complementary manner rather than antagonizing each other. There will surely be increment in the price of coins when there is good news in the market and vice versa.

However, there is no law that says one needs to depend solely on these analyses to make money in crypto. In fact, personally, I don't use neither of the two. I do base my trade on the demand and supply theories. Most times I may be lucky to have much profit and sometimes, I lost. That's all what crypto is all about. Depending on these analyses won't make you win all the time as well. This is because of the high volatility of the crypto market.

 

[Tactical]

The combination of fundamental and technical analysis is the best approach for traders who are looking to benefit from trading. With fundamental analysis, you can determine the future price movements based on the current news and events that can trigger the market’s movement. You need an economic calendar for fundamental analysis (Forex factory has the best one!)

With technical analysis, on the other side, you can identify trends and patterns to figure out entry and exit points. Short-term traders, like scalpers, rely mostly on technical analysis. But in the longer-run, the knowledge of both the analysis is powerful.

 

[Shaf]

Both technical analysis and fundamental analysis are important. Some people like to argue that one is better than the other, but it's clear that using both in your trading would give you an edge over those who don't use it.

A lot of information can be seen on charts especially when using candlesticks, as the price simply reflects how people are reacting to fundamental news, and how other traders are reacting at that moment.

Knowing what's going on before that can however let you anticipate how people will react so you can take action beforehand.

 

[Suba]

In forex trading fundamental analysis is needed, because it relates to the global trend of a currency. also to find out the dynamics of a country's economy, interest rates go up or down. So basically fundamental analysis focuses on economic and political factors. While technical analysis is to predict the direction of price movements in currency pairs using indicators or charts, historical data.

 

[pawelkolasa]

Fundamental analysis and technical analysis are complementary to each other. Using both these strategies together can help a trader to analyse the market for potential trades and understand the right entry/exit points for maximum profits.

 

[Setho]

You must have probably learnt that forex traders are usually divided into technical analyst and fundamental analyst . It is very important that you should know this type of trading styles before you should start trading the market .

Technical analysis usually try to predict a market using price action and comparing it with what has happened in the past . Technical analysis believe that history always repeat itself and that structure is just a replica of human psychology and can be able to state if people are going to be buying an asset or if people are going to be selling it .

Fundamental analysis on the other hand hopes to be able to predict price movement by watching other smaller micro aspects of a particular assets. For example fundamental analysis believe that you can be able to predict price movements based on news that is spreading at the moment, the number of active addresses that are currently holding that particular except , any latest technology that is about to be introduced and also the team that are behind that particular project.

There is generally no particular one that you can say is the best so you should play around it and identify which one is best suited for you .

 

[waldgrave]

Mainly, there are three forms of forex analysis. They are fundamental, technical, and sentimental. The first two are a form of standalone analysis.

Fundamental - analysis of countries monetary policies, news, interest rates, and other global events to predict the movement of the market.

Technical- it involves the study of charts to select entry and exit points for traders, based on patterns and trends.

Sentimental- it is a form of analysis where the general view of the market is captured regarding trading with the help of social media platforms like Twitter, Facebook, and forex communities.

 

[Mary Frederick]

Technical analysis sis an analysis that is done using technical tools whereas fundamental analysis incorporates every aspects inside and outside the market. Both analysis are essential to catch the market trend nicely. Eurotrader provides almost all technical tools to their traders via the platform so that they can analyze the market technically.

 

[Dita Walczak]

Well, if you are a new! Don’t focus on the both initially! You can start with the technical, but I am not suggesting you to avoid the fundamental! News trading is relatively challenging, so when you are confident enough on the technical analysis then start the news trading!

 

[Chlamys]

Fundamental and technical analysis are two of the most important types of trading analysis.

With fundamental analysis, traders analyse news and global events that can potentially trigger the market’s volatility. To determine that, traders use economic calendars.

Technical analysis, on the other side, relates to reading charts and identifying patterns and trends. It is one of the most powerful tools of traders. With the help of it, traders can select profitable entry and exit points for their trades.


Both of these analyses are important. A combination of them brings the best results.

 

[Asahi]

Technical and fundamental analyses- you can go for either but combining both will be a wise option for you. Eurotrader offers all technical tools for technical analysis and fundamental analysis need better market observation.