Technical Trading Alone?

Is it possible to be a consistently profitable trader with technical analysis alone or do I need to learn how to trade the news as well?

What has the most overriding importance of the two? Or should you just do both?

Thanks :slight_smile:

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You don’t necessarily need to ‘trade the news’ as this can be a volatile and unpredictable time to trade, however my belief is that you should factor Fundamentals in as well as your Technical to aid in gauging a directional bias.

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Definitely enough to learn technical trading alone but it is wise to always be aware of the high impact news and not to trade those times.

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Profit can be made by trading from any position, but in order to gain that profit, it is necessary to have mindset and emotional control. From my point of view, I think technical analysis is a good strategy to make a profit, but if there is only a strategy, it cannot be profitable. This requires patience and practice.

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If you’re trading on the D1 time-frame, there is little gain from reading the news and trying to analyse what it means. These are well known and most are found labelled as high impact on any decent economic calendar. But it can be wise to either avoid holding across high impact calendared economic news releases, or to reduce position size or adjust stops etc.

Trading off news releases themselves can be profitable because these can generate dramatic price movements. These are not always reversals.

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according to my trading experienced i think the result of technical trading is all about short time approach , its not a permanent anything , only fundamental analysis you can suppose as a long approach.

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Technical Analysis alone is good enough for trading if you prefer to stick to it. However, if you learn Fundamental Analysis as well (trading news) then it will open up more opportunities for you so it is better to do both if possible.

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You need proper planning.

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The knowledge of both fundamental and technical analysis can help you make better and more informed trading decisions. But how much emphasis you should put depends also on your trading style. Short-term traders, scalpers in particular, rely more on technical analysis to close trades instantly.

Technical trading alone is not enough. Fundamental trading is as important. Both used simultaneously can yield good results. Economic calendars are available on the internet which can inform you about the important events that affect the forex market. You can also learn to trade the news.

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It’s taken a while but I’m starting to get good results trading anything on the calendar that says “Fed” or “FOMC”. I made 80 pips this morning on EUR/USD short. It was a bit hit-and-miss at first but after half an hour–around 10:30am Eastern Time–one of my orders from my original plan (the less said about that the better) triggered and I moved my stop loss down every 20 pips until a green candle stopped out my position.
I got a lot out of “The Little Book of Currency Trading” by Kathy Lien. It’s 11 years old but it helped make fundamentals trading possible for me, and there’s still a lot of technical analysis involved. In short, it’s doable but a bit tricky. Best of luck if you choose to try it out!

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Technical trading is no doubt very important for traders. But it is best if you keep track of fundamentals for long-term benefit.

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You can be consistently profitable if you have the skill and discipline to follow a trading strategy. Technical analysis is the best way to make a profit in the market. However, it is not always possible to anticipate major price moves. A good forex trader knows how and when to adapt their strategy based on the market conditions.

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Fundamentals align with the technicals. It does not matter what the result is of a certain news release. Now on the longer term this can have some impact and there might be a certain way of forecasting this, but that is outside the scope of my knowledge.

Before news gets released, the market makers already know where they will move price to for recapitalisation, reversals, etc.

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It is certainly sufficient to understand technical trading on its own, but it is prudent to be aware of high-impact news and avoid trading during those periods.

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Yea right, like some news will boost price to an appropriate technical resistance sort of thing…

News will be boosted to certain price levels to grab buy stops for example. When enough orders have been liquidated / collected, then they can move to a different level.

The difficulty with trading and the reason that so many quit is that there are a number of ways to approach the market. Some will work for you and some won’t. The difficulty is finding that sweet spot and the time it takes to do it.

trust me ,neither of them makes you constantly profit.

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Yes and the difficulty is not knowing whether the potential sweet spot you are spending time on is going to eventually result is a successful strategy. I’m having big issues Deciphering between luck and logic…