hello there,
Please share your thoughts and experiences on this topic with the people of the forum, as I would like to hear from you. Do you exclusively use fundamental analysis when trading, or do you also believe in the need for technical analysis?
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How much access do we really have to fundamental analysis? Especially in the forex world. Banks spend millions on analysis to figure out what the news will be and they usually get very close to correct.
We have access to news and statistics, but that’s mostly priced in already by the time the data comes. The key to fundamental analysis is knowing what will come next
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hello
i dont use fundamental i just try to be better at chart analyzing
because i think the price will do what it like and the news cant ba really important on forex
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I don’t really understand or agree with the whole fundamental vs technical argument in FX. I mean, all you have to do to know the fundamentals on a currency pair is to look at a weekly or monthly chart.
Fundamentals are used more in stocks to determine whether they’re currently overvalued or undervalued (that’s a very simplistic statement).
So my obvious answer to your question would be long term, technical analysis.
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That’s simply not true.Chart analyzing is FX price action driven by order flow which arises from fundamentals - and which is what drives the market sentiments.
The major financial currency news is extremely important, albeit by the time it reaches us, the order flow and price action has been in full play by the big banks.
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Fundamental Analysis and Technical Analysis are two different approaches to understand the behavior of the financial markets and to make educated predictions for future trends.
Fundamental Analysis:
Fundamental analysis involves examining a company’s financials, industry position, and market conditions to make an investment decision. It’s a method of evaluating intrinsic value of securities to determine long-term investment.
Elements considered in Fundamental Analysis include:
Financial and economic analysis: Studying the company’s financial statements (Balance Sheet, Income Statement, Cash Flow Statement) to assess its financial health.
Industry and company analysis: Evaluating the company’s competitive position within the industry and the industry’s potential for growth.
News and current events: Considering macroeconomic factors and news events that could influence the company’s performance.
Technical Analysis:
On the other hand, technical analysis relies on statistical trends gathered from trading activity, such as price movement and volume. Instead of looking at a company’s fundamentals, it looks at historical trading patterns and trends to predict future ones.
Elements considered in Technical Analysis include:
Price patterns and trends: Looking at historical price patterns to predict future price behavior.
Trading volumes: Analyzing changes in trading volume to confirm price trends.
Technical indicators: Using indicators and oscillators such as Moving Average, Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), etc.
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When I need to take prompt decision, I prefer technical analysis, otherwise fundamental analysis is highly preferred.
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Actually I consider technical analysis is focused on market behavior and can be helpful in identifying short-term trading opportunities.
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Many successful traders employ a combination of fundamental analysis and technical analysis in their trading strategies. I also follow this approach, utilizing fundamental analysis to select assets and employing technical analysis for trading them.
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it depends on your style. the right short anwser would be use both.
Me personally only use technical analysis. I don’t like fundamental but i heard fundamental analysis is very important especially on lower timeframe. I found a way to “ignore” that and I only trade off technical anaylsis and it works for me. I don’t trade any pair who has any major fundmental report upcoming that day. This is my only fundamental analyisis which I take in account. but as i said, it depends on your trading style, maybe TF too
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It is important to distinguish between trading fundamentals and trading the news. It is indeed fundamentals that ultimately move the price and generally they are long term. Take, for example, the current efforts by central banks to lower inflation by raising interest rates. As a fundamental factor, this policy is not an hourly or weekly or even monthly impact - but each individual rate increase is a separate news event, as is each NFP, for example, at the time of its release.
So fundamental trading is really a long term vision and it is very difficult to determine actual entry, stoploss and target levels.
Technical analysis is actually looking at the same thing except that its focus is on interpreting the actions of the majority of market participants as they respond to the news/fundamentals rather than the underlying fundamentals themselves.
In that sense one could say that trading fundamentals is following one’s own personal interpretation of policies, etc, whereas trading TA is following the interpretation of the majority of all the other active participants in the market.
And since, by definition, the majority of other participants must always be right, I prefer to follow what they are doing by analysing their overall impact on price movement rather than the underlying fundamentals. 
Naturally, one should always be aware of upcoming news events since they may have an impact on current price both before and after the event and one needs to decide whether to be in a trade or sit on the sidelines at that point…
Just some thoughts 
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I use both, even though I’m more at home with technical analysis. I trade once a day with daily charts only, as they suit me as a part-timer. So through the week it’s technical (applying a clearly defined set of rules). On the weekend it’s fundamental and technical to review (and hopefully predict) currency pairs and other assets I’m trading or looking to trade.
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I did prefer technical analysis
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Hi!
Ah, the age-old debate between fundamental analysis and technical analysis. It’s a fascinating topic that has sparked countless discussions among traders. Personally, I believe that incorporating both fundamental and technical analysis in our trading approach can provide a well-rounded perspective. Allow me to explain.
Fundamental analysis involves analyzing economic indicators, financial statements, news events, and other factors that impact the value of a currency or asset. It helps us understand the underlying forces that drive market movements and make informed trading decisions based on the broader economic picture.
On the other hand, technical analysis focuses on studying price charts, patterns, and market trends. It helps us identify entry and exit points, gauge market sentiment, and make predictions based on historical price behavior. Technical analysis can provide valuable insights into market psychology and help us navigate shorter-term price movements.
While some traders may lean more towards one approach than the other, combining both fundamental and technical analysis can offer a more comprehensive understanding of the markets. Fundamental analysis helps us grasp the “why” behind price movements, while technical analysis assists in timing our trades and managing risk.
By integrating both approaches, we can benefit from a broader range of information and make more well-informed trading decisions. It’s like having a multi-faceted toolbox at our disposal, allowing us to adapt to different market conditions and increase our odds of success.
Of course, each trader has their own unique trading style and preferences. Some may prefer a more fundamental-driven approach, while others may lean heavily on technical analysis. It’s essential to find a balance that aligns with your strengths, preferences, and trading goals.
Remember, the key is not to get caught up in the “either-or” mindset. Instead, embrace the power of synergy by incorporating elements from both fundamental and technical analysis into your trading strategy. This way, you can harness the benefits of each approach and navigate the dynamic world of trading with more confidence.
I’m excited to hear your thoughts and experiences on this topic, as we can all learn from each other’s perspectives. Let’s engage in a fruitful discussion and continue to grow together as traders!
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This kind of comprehensive response to my question, in my opinion. Thank you for providing this much detail.
Unless you trading long term… stick to technical… and dont trade during news
I rely on both when I have time but when I try to forecast the market quickly, I use technical analysis.
Hi there, is usually try to corporate both technical analysis and fundamental analysis, so when i like a certain setup I usually look up on what’s the fundamental in play. It can either be inflation, interest differential, central bank expectation (hawkish or dovish). Also i also like looking at market sentiment to gauge if traders and investors are risk on or risk off. From there i can gauge if I still want to take the trade or not by assessing the probability. If i like the setup but fundamental does not support I can either skip the trade or use partial position size.
So by combining both approach you can get a better feel of the odds in my opinion. Hope that helps.
By the way, learning more about technical analysis is a good idea.
Many traders take a hybrid strategy, using parts of both fundamental and technical analysis. The choice between fundamental analysis and technical analysis often comes down to personal preference, trading style, and the specific market being traded.