From my own experience, the majority of the Forex traders prefer technical analysis over fundamental. The reasons are quite obvious — only macroeconomical fundamental indicators affect currency prices and there are not many of those available. The stock market has many fundamental parameters for each company that strongly influence daily trends. In Forex market technical analysis brings up a lot more opportunities than the fundamental one. But to trade without regarding a fundamental side of the market is also a big mistake, especially if you trade long-term. That’s why I prefer to use technical analysis to determine most of my positions but I also pay attention to fundamental analysis to avoid some obvious pitfalls. And what kind of analysis do you prefer?
If you want to share your thoughts on different types of analysis in trading and their influence on success of a Forex trader, please, feel free to reply using the form below.