Hello all,
So I have a researched argument for my A.P. Composition class. My chosen topic is “Technical Analysis Versus Fundamental Analysis of the Foreign Exchange Market”. In short I have to compare these two styles in a non bias manner.
I just want to hear your pros/cons of each approach, opinions on why one is better than the other, which one is more effective.
Thanks in advance.
thats a question to which no clear or right or satisfying answare has been found since over 40 years.
i wish you good luck with your task and hope you will share your future insights here.
The advantage of each is that it disregards the other.
Of course, that’s the disadvantage of each also.
Maybe take a different approach, your essay can be argumentative, perhaps drop the vs element.
Here is thinking right now:
So what does a short covering rally really look like and why we can’t really trade one?
Of course everyone chooses what they like best, but I don’t trust fundamental analysis too much, so my choice is technical analysis, I think it’s more exact.
I read that many people use FA to select their market, and then TA to identify the right time to enter. I say I read this because I’ve encountered very few who trade this way. The people who are convinced by FA tend to disregard transient price movements and are happy to get into something regardless of price rising, falling or remaining static. They tend to be long-term holders of a position, which is where you see FA play out, so little price blips mean little to them, though they may use a loosely defined pull-back to enter. They nay not even consult charts for this purpose (possibly in case it colours their judgement?).