What to use technical or fundamental

 

How do you know what currency to buy or sell?

Both the technical and fundamental analysis are important when trading on the FX.

Fundamental components - Macro, Micro and Monetary

Macro - The big picture news and politics. Elections of a new government leader can have a real big impact on currency. Look at the trade relationship with another country. Are countries deflating their currency with the intent to increase, their exports.

Micro - Day to day activities, which are the employment rate, GDP and inflation data.

Do your homework and really uncover the data. You will need real hard data and not just a few days of news.

Monetary Interest Rates

The central bank sets the interest rate and the direction of the countries currency

With monetary it is important to know where the interest rates are going.

The technical indicators and principles such as Fibonacci Retracement, Candlesticks and oscillators analyze past price movement and the probability of a currency's future price direction.

What analysis and or charts do you use for trading?

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Tracy Lenyk

 

I agree both fundamentals and technicals are essential..

Fundamentals drive the direction of the market, while the technicals should be used to establish entry and exit points!

 

I think that we should use both types of analysis.

 

You always need to use a blend of both forms of analysis, and honestly with the recent market events, you can NOT miss the fundamental side of things.

 

both should be interpreted in order to get the best results. That's what most forex mentors say.

 

I usually make intraday trading... I look first at technical

 

both of them of course!

 

Of course, both technical and fundamental analysis are important.But sometimes fundamental analysis doesn't justify the hopes. You expect that some event affect the market but nothing happens, or happens with the delay when you don't expect it. So i think it's better to be based on technical analysis, somotimes according to fundamental.

 

The force of supply and demand that have an effect on currency prices are influenced a great deal by the economic environment around them, the most important factors being how strong the economy is. So fundamentals are important.

 

If you trade Swing, you will be on longer timeframe charts, then the fundamentals become just noise. The technicals will always prevail.

Do yourself a favour. Learn Technical trading, then zoom out to daily or longer timeframes. You will start to see in which direction you should be trading.

 

Both itype of analysis had their benefits and flaws . up to your trading style what is useful for you .Mostly new traders are dependent on technical analysis because they find help of indicators . Fundamental analysis experts are different they work on news updates and current affairs for trading decisions.

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