Technical analysis vs Fundamental Analysis

Hmmmm, i'm not using them totally both in a single trade. It's not what you think, since fundamental analysis is for long term trades.:p
 
I agree with Ricex. - To go back to my question: obviously nobody can give fundamental reasons for the GBP/USD move last week. So, if it is not even possible to find reasons afterwards, how will one find reasons before such a significant move??? After all, the latter is what we need in forex trading.

Regards, Stony
 
Hmmmm, i'm not using them totally both in a single trade. It's not what you think, since fundamental analysis is for long term trades.:p

Long term trades in the forex market - my advice: don´t even think about that! I lost a lot of money when I tried that with certificates and options. Forex trading is daytrading, and daytrading has almost no relations to fundeamentals.
 
Oh ok, hmmmm, I really need help here. I thought fundamental analysis works for trade. Now, most of you are saying that technical is better than fundamental. Ok, I got you.:confused:
 
Everyones got an opinion in life and forex is no different. One trader will argue that such and such works, another will argue that it never does. Finding a path through all this opinion, hype, lies, inexperience, arrogance and stupidity is down to you alone.

As a trader you have to make decisions all the time, hopefully these decisions are educated and have root in a profitable strategy but the choice to buy or sell rests firmly in your head, nobody else is there.

There are people making money from both types of analysis I'm sure, but you need to find out what works for you. You seem to want to use fundamental analysis in your trading, which is fine, but do you understand what consequences certain numbers will have on currencies? it's not always the most obvious outcome you might think, gaining this knowledge takes a long time.

Starting out in forex I would advise to keep it simple, try not to overload your mind with all the fluff and dust. Concentrate on fully understanding basic technical analysis and you will have a very good foundation for success.
 
There are good technical traders and there are good fundamental traders. Still, a good trader needs to be aware of the other style.

A good technical trader should still be aware of major news events that could throw charts into disarray. A good fundamental trader should still be aware of areas of strong support and resistance.
 
Concerning news, you got a point. That is fundamental, but also a short term phenomenon. The short term trader should try to be flat at news times.
 
Fundamental and Technical analysis combination

Hi all,

As you know the USD is at risk at the moment because of some news and according to market actions... and it's on the down trend also for now, so it's a good chance to sell USD and buy others currencies.

Today Fundamental we have GBP Retail Sales m/m at 08:30 (GMT) Forecast: 0.5; Previous: 0 and Retail Sales y/y Forecast: 2.8; Previous: 2.1

And Pivot point we have :
R3: 1.6993
R2: 1.6814
R1: 1.6701
Pivot :1.6523
S1: 1.641
S2: 1.6232
S3: 1.6118

The market open today at: 1.65888 (Alpari UK broker)

In general view we have seen it's support GBP for both Fundamental and Technical analysis so here is a trading plan for GBP/USD using Fundamental and Technical analysis combination:

GBP/USD Buy @ 1.6600 - SL: 1.6450 - TP: OPEN (the market price now: 1.66070)

This signal may use for short, medium and long term also.

Happy trading !

FXDM
 
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