Fundamental Or Technical?
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Technical analysis is my primary tool in trading. The fundamental analysis is used only in some special cases or to confirm the plan based on technical.
Thats right!!
TA - For short term trading
FA - For long term trading
My favorite is technical analysis as the form of my trading is intra-day. As a small investor, I long currency daily at low price and sell it at high. That’s how I book my profit everyday. I use the price trend charts, moving averages and relative strength to find the stock value and maximize my profit. With the help of price charts we can prepare Support/ Resistance level for getting buy/sell signal, which is very helpful for trading wisely. And all this comes under my form of analysis that is, Technical Analysis.
TA - For short term trading
FA - For long term trading
My favorite is technical analysis as the form of my trading is intra-day. As a small investor, I long currency daily at low price and sell it at high. That’s how I book my profit everyday. I use the price trend charts, moving averages and relative strength to find the stock value and maximize my profit. With the help of price charts we can prepare Support/ Resistance level for getting buy/sell signal, which is very helpful for trading wisely. And all this comes under my form of analysis that is, Technical Analysis.
Fundamental analysis, if done properly, requires a University Degree in economics all on its own, and than one can at best study only one pair, as this is an economic study of 2 countries. Trading one pair limits me in my way of trading. Read on.
Basically, one can reasonably take cogniscance of the economic calendar announcements and make sure you are correctly situated in the trade, or place an OCO trade, or straddle the market. I don't, I stay out. I am a scalper and use no tech anal tools. All technical analysis tools are price followers and can not predict anything. For me they are a waste of time. The believe that the past repeats itself remains an opportunistic prediction.
If anyone knows of a download that would give me a currency stength indicator, and a trend strength indicator , yes, those I would use. I trade for a living, reasonably successfully on a daily basis (scalping and day trading) I only use price charts, candlesticks, trend lines and R and S situations. I only trade in the direction of the trend.
My trading system goes something like this:-
1.H Chart:- Establish trend over last 2 days. establish 3 S and R levels.
2. Check which side of the PP the previous day closed... gives potential trend direction only, not a definite trading signal.
3. Open 15M chart, wait for price to bounce back of S or R taken from !H charts and follow the retracement or trend perpetuation in the direction of the trend.
I take between 5 and 15 pips per trade.
Works well ones one is used to it. I don't stick to a particular pair. Working with the m4 platform I have a profile that displays all USD, EURO, and GBP pairs, IBFX doesnot provide the GBPAUD pair, don't know why.
I look through all regularly during the day to see if I can spot a trade based on my method. I have recently bought 2 EA's after my own major investigation, both are running profitably. I will discuss these in 7 days from now once my personal trials have been run and I have satisfied myself that I am not talking Cr...p when I speak about them on our forum.
Basically, one can reasonably take cogniscance of the economic calendar announcements and make sure you are correctly situated in the trade, or place an OCO trade, or straddle the market. I don't, I stay out. I am a scalper and use no tech anal tools. All technical analysis tools are price followers and can not predict anything. For me they are a waste of time. The believe that the past repeats itself remains an opportunistic prediction.
If anyone knows of a download that would give me a currency stength indicator, and a trend strength indicator , yes, those I would use. I trade for a living, reasonably successfully on a daily basis (scalping and day trading) I only use price charts, candlesticks, trend lines and R and S situations. I only trade in the direction of the trend.
My trading system goes something like this:-
1.H Chart:- Establish trend over last 2 days. establish 3 S and R levels.
2. Check which side of the PP the previous day closed... gives potential trend direction only, not a definite trading signal.
3. Open 15M chart, wait for price to bounce back of S or R taken from !H charts and follow the retracement or trend perpetuation in the direction of the trend.
I take between 5 and 15 pips per trade.
Works well ones one is used to it. I don't stick to a particular pair. Working with the m4 platform I have a profile that displays all USD, EURO, and GBP pairs, IBFX doesnot provide the GBPAUD pair, don't know why.
I look through all regularly during the day to see if I can spot a trade based on my method. I have recently bought 2 EA's after my own major investigation, both are running profitably. I will discuss these in 7 days from now once my personal trials have been run and I have satisfied myself that I am not talking Cr...p when I speak about them on our forum.
Actually FA involves lots of fundamental and economic factors and thus require intellectual and analytic. Therefore i believe it is harder that TA.
Technical trading has an edge over fundamental trading. Technical analysis uses charts to present graphical representation of the market over and to identify the pattern of price movements. Technical analysis chart includes moving averages, oscillators, candlestick charts, Bollinger bands, Fibonacci levels and many more.
Technical is the only way to go. As is for any investment. Why bother with finding fundamental facts when somebody then screws up in the Financial Institutions and all the studying is for the bin.
