Can you share your preferred analysis method between fundamental and technical analysis? Specifically, which method do you use when trading Gold? I am also curious if there are specific guidelines for fundamental analysis as I view it as a collection of political and economic advice that may not be practical for full-time traders. As for technical analysis, I find there are many sources available, and it can be overwhelming. I would appreciate any insights based on your personal experiences. Thank you.
I am not one yet. I asked my question generally. Just mentioned gold as an example. Cause recently I’ve been watching that market a lot. But as far as I know (and searched) Geopolitical events, Currency fluctuations, and Central bank policies can affect that. These are obvious reasons! And as I mentioned I couldn’t find any reliable source for fundamental trading!
I have been trading Gold for almost 95% of my trading career, solely based on what I see on the chart. I do not pay attention to the news. I only trade what the market is doing at that particular time. News or no news.
One thing i observed about Gold is, it less or never reacts to most of economic data but more or will aways react to political tensions and sentiments of the world’s reserves.
For my trading system, i make use of both. Just like learning how to use the technical analysis, fundamentals also has its how tos.
Wrong. Rather, I see fundamentals as a collection of sentiment. Whatever you look for in the sentimental world, it’s found in the fundamentals - they are like codes and encrypted on the technicals.If you can understand how to read them, it’s like grasping the belly of a sword.
Thank you, Margaret!
What do you mean by paying more attention? Should I make a technical analysis and then check the fundamental conditions of the market to check if they are going to be correct? Or what?
There’s a course on that on BP’s lessons, you can check that up. But like professionals would always say, technical analysis is the study of price while fundamental analysis the study of numbers. I believe this little quote would be helpful as you look that up.
That’s correct. I do not care what the news is. I only look at what the chart is telling me. I am of the opinion that whatever news there is, the chart will still display the same price information for every trader. E.g If Gold breaks the all time high (2075.18), that will be the same info for everyone, whether you saw the news or not.
In the end, whether you choose to use fundamental analysis or technical analysis depends on your trading style, investment goals, and the securities that interest you. It’s important to have a good understanding of both methods and to combine them to gain a comprehensive understanding of the market and make well-informed trading decisions.
Yes, the fundamental analysis can surround each and every pair. Consider past record of the pair, ongoing news and views around the world and how much buying pressure on Google.