Fundamental Analysis Vs. Technical Analysis

[andy003]

I would like to ask a question to you all, which analysis is best according to you and why?

[Sofia]

Hi

I prefer combination of both. Both are vital for me as i love news trading and it is important to me to track both technical analysis and fundamental analysis for all my trades.

[JEAN]

The fundamental analysis helps you to understand why the currency pairs moves like that, and the technical analysis tells you what will happen.

This is a site, from my broker ACM, that kind of explains the diff
good luck!!!

[FXexpert]

I definitely think a combination is best. Technical is more consistent but fundamental can make you aware of some key breaks in the trend.

[ChartSecret]

Technical Analysis is best for short-term trading - there's is no doubt about that. Chart Patterns have worked for decades, in all timeframes from 5-minute to 4-hours and daily charts. If you want to day-trade there is no other analysis.

However, Fundamental Analysis might be better in the longer-term, though there is no solid rule of trading with Fundamental Analysis, and I daresay that Fundamental Analysis is even more subjective than Technical, because the people who know how to interpret Fundamental Data to trading decisions are rare. The trades also occur less frequently and can suffer big losses before price will play according to the 'fundamentals'. This sort of investing requires high discipline (and deep pockets).

The main thing is never to combine the two. Technical will be almost useless in the longer term, and Fundamental is meaningless in the short-term. Using them together will simply cause you to trade less (because you will need more confirmations) and your performance will decrease.

[miskec]

It is best if you combine the 2 analysis, so that you get the best results.

[Sofia]

Yes that's what i said. The best way is to use both techniques.

[andy003]

Originally Posted by Sofia

Hi
I prefer combination of both. Both are vital for me as i love news trading and it is important to me to track both technical analysis and fundamental analysis for all my trades.

Means before initiating any trade you check fundamentals and technicals of particular currency. As a day trader do you also use fundamental analysis.

[andy003]

Originally Posted by JEAN

The fundamental analysis helps you to understand why the currency pairs moves like that, and the technical analysis tells you what will happen.
This is a site, from my broker ACM, that kind of explains the diff
good luck!!!

Some times there are no particular reason for the movements of Currency pairs. Does fundamental analysis work in day trading, i read in a website that . "Avoid scheduled news: Listen all news or scheduled news but don't try to follow news in your trade, make your own trading plans and strategies." so what will you say about this sentence.

[andy003]

Originally Posted by Sofia

Yes that's what i said. The best way is to use both techniques.

Hey sofia

could you explain me how to use both analysis?