To this day technical analysis is regarded as one of the most important parts of trading and overriding fundamental analysis that is deemed unfit to be learned due to too much news in it.
But is this opinion correct?
UNDERSTANDLY CAREFULLY, CARNA IS AS NICE TECHNICAL ANALYSIS STILL MESTI IS COMPETING WITH FUNDAMENTAL ANALYSIS.
Many traders who until now seem very underestimated fundamental analysis and eventually led to failure because of wrong in predicting the right moment in applying their technical analysis. In technical analysis and fundamentally there is no more main, both have the same position and the same needs.
Many people ask questions about how important a fundamental analysis is required in trading, the answer is that if your technical analysis can determine when to enter and exit, then fundamental analysis is a price driving factor. Without any price driving factor, any great analysis will be very useless.
The first time to jump into the world of forex trading many who began to learn technical analysis with a very deep way that is interested in the form of charts and candlestik form. And a lot of really true make this technical analysis so something that is so amazing and feel quite just technical analysis only.
Moving average, with the average calculation of this candle movement can predict and estimate a trend. Then start pairing it with Bolinger Bands as well as some other indicators. But because the weakness of fundamental analysis all in the end feel to be futile.
One of the main causes is mis timing that does not take into account the factor of the news that is the driving factor of price and this is a huge loss for a trader. Although in fact in fundamental analysis kerat relationship with economic moments.
It stands that when all indicators provide a strong bullish signal, but the fundamentals say it's a shame. What then happens is that the price will go down immediately and defeat all technical analysis. This is then not recognized by most traders, where fundamentals are the drivers of price.
Here's why fundamental analysis is really important.
The accuracy of the apparent statistical value of technical analysis will always be influenced by fundamental analysis. This subject also makes analysis of some traders sometimes different, and often contradictory. This is because a story that sometimes contains only one survey result or contains only a political outlook or monetary policy will really ensure that one country's economy is healthy or not. This is what then makes the movement in the chart
News of big news like Non Farm Payroll, interest decission or CPI is one example dianara many big news that can not be missed
From the above discussion it can be seen that many traders who suffered huge losses due to underestimating fundamental analysis, this is the biggest mistake made by a daytrader. A professional trader should really consider the economic news that in fact is a big aspect in one analysis.
Talk about economic news is to talk about the logic of why one price can take place. It can be said that this is a market psychology that has a significant role. For example, in mid-2006 there was an incident in which the Fed added interest rates that should have strengthened the dollar, but that at that time the dollar weakened.
Indeed this has been read because previously the Fed indeed has given a sign of this increase as well as the market has begun to react about this increase.
Here lies the balance of technical and fundamental analysis, where market reaction to a single news release can affect the psychology of trading which will then become one of the main drivers of price.
Fundamental analysis can not stand by itself, but side by side with technical analysis. Both can not stand by themselves and equally fill each other's shortcomings.
But is this opinion correct?
UNDERSTANDLY CAREFULLY, CARNA IS AS NICE TECHNICAL ANALYSIS STILL MESTI IS COMPETING WITH FUNDAMENTAL ANALYSIS.
Many traders who until now seem very underestimated fundamental analysis and eventually led to failure because of wrong in predicting the right moment in applying their technical analysis. In technical analysis and fundamentally there is no more main, both have the same position and the same needs.
Many people ask questions about how important a fundamental analysis is required in trading, the answer is that if your technical analysis can determine when to enter and exit, then fundamental analysis is a price driving factor. Without any price driving factor, any great analysis will be very useless.
The first time to jump into the world of forex trading many who began to learn technical analysis with a very deep way that is interested in the form of charts and candlestik form. And a lot of really true make this technical analysis so something that is so amazing and feel quite just technical analysis only.
Moving average, with the average calculation of this candle movement can predict and estimate a trend. Then start pairing it with Bolinger Bands as well as some other indicators. But because the weakness of fundamental analysis all in the end feel to be futile.
One of the main causes is mis timing that does not take into account the factor of the news that is the driving factor of price and this is a huge loss for a trader. Although in fact in fundamental analysis kerat relationship with economic moments.
It stands that when all indicators provide a strong bullish signal, but the fundamentals say it's a shame. What then happens is that the price will go down immediately and defeat all technical analysis. This is then not recognized by most traders, where fundamentals are the drivers of price.
Here's why fundamental analysis is really important.
The accuracy of the apparent statistical value of technical analysis will always be influenced by fundamental analysis. This subject also makes analysis of some traders sometimes different, and often contradictory. This is because a story that sometimes contains only one survey result or contains only a political outlook or monetary policy will really ensure that one country's economy is healthy or not. This is what then makes the movement in the chart
News of big news like Non Farm Payroll, interest decission or CPI is one example dianara many big news that can not be missed
From the above discussion it can be seen that many traders who suffered huge losses due to underestimating fundamental analysis, this is the biggest mistake made by a daytrader. A professional trader should really consider the economic news that in fact is a big aspect in one analysis.
Talk about economic news is to talk about the logic of why one price can take place. It can be said that this is a market psychology that has a significant role. For example, in mid-2006 there was an incident in which the Fed added interest rates that should have strengthened the dollar, but that at that time the dollar weakened.
Indeed this has been read because previously the Fed indeed has given a sign of this increase as well as the market has begun to react about this increase.
Here lies the balance of technical and fundamental analysis, where market reaction to a single news release can affect the psychology of trading which will then become one of the main drivers of price.
Fundamental analysis can not stand by itself, but side by side with technical analysis. Both can not stand by themselves and equally fill each other's shortcomings.
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