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Fundamental VS technical

  • #1
  • First Post: Nov 16, 2008 3:38pm Nov 16, 2008 3:38pm
Its obious that fundamental indicators such as news and interest rates move the currency prices so why would anyone even consider using TA and drawing some line on currency charts if its all about the FA?
  • #2
  • Nov 16, 2008 3:42pm Nov 16, 2008 3:42pm
Try both and see what works for you.

Technicals just seem an easier way to digest the herd mentality.
Redefining Reality
  • #3
  • Nov 16, 2008 4:28pm Nov 16, 2008 4:28pm
Sometime fundamentals takes a lot of time to actual move the market in a given direction.

Technical do not rely on fundamentals so you can be technicaly right but fundamentaly wrong.

Best thing is to use technical AND fundamental (but i use only technical)
  • #4
  • Nov 16, 2008 6:56pm Nov 16, 2008 6:56pm
Quoting mitjar
Its obious that fundamental indicators such as news and interest rates move the currency prices so why would anyone even consider using TA and drawing some line on currency charts if its all about the FA?
Even if we assume for a moment that general market direction is mostly attributable to fundamentals, other details can still make or break a trade. For instance, where do you set your stop loss and take profit areas? Fundamentals don’t supply this information. This is where TA can come into play, even for those who prefer fundamentals for direction. It can help you develop a winning trade.

  • #5
  • Nov 17, 2008 12:37am Nov 17, 2008 12:37am
This topic has been rehashed so many times it's noxious.
By the way I trade strictly tech. I try to avoid all news...... it just pisses me off when I listen to all the crap and empty talking heads.
Same Whore .... Different Dress
  • #6
  • Nov 17, 2008 2:31am Nov 17, 2008 2:31am
Quoting mitjar
Its obious that fundamental indicators such as news and interest rates move the currency prices so why would anyone even consider using TA and drawing some line on currency charts if its all about the FA?

Ask yourself this. If fundamentals is how the markets move efficiently, then why are companies with record profits seeing their stock down by more than 50%. And why is the U.S dollar rising? Because of fundamentals? A flight to safety?? Tell me whats so safe about a currency thats backed by recycled paper? Nothing. All fundamentals have been thrown out the window along time ago and have given way to market sentiment. Or fear and greed for short. And the best way to visually see market sentiment is through T.A
Trading news is the best way to give me your money.
Just Trade It
  • #7
  • Nov 17, 2008 3:36pm Nov 17, 2008 3:36pm
hahaha. fundamentals dont move the market. banks do. lol. banks might listen to some news feeds to make a decision, but that's not their only tool. one of the biggest things that actually moves a market is just banks making simple buy and hold trades or quick exchanges o make a profit. i once visited deustche bank's trading floor in their new york headquarters. these guys werent watching CNBC. they were watching price feeds. they werent on the interenet looking at yahoo news, they were on the phone talking to other banks. when i say watching price feeds i mean that literally. it was like two screens filled with quote boards, one screen with emails and other work related stuff, and then a screen for thompson and reuters feeds. but i noticed that most of them were looking at the price feeds, not the news feeds. now, they did listen to some news. they had an economic analyst that was shouting out data about certain things like interest rates or whatever, but the traders were more concerened with the long term fundamentals, not the kinds of things on FF. basically, they would pick a general fundamental direction for a currency and then look for good opportunities to get into a trade and get out as quick as possible. so i guess you could say they used fundamentals, just not the ones that retail traders do. most of what we believe in the retail sector about how the market moves is only a symptom of the actual movement itself. im not saying that fundamentals move the market, because they do, same thing with technicals. im just saying that not all movement is either one. in fact, most movement isnt.
  • #8
  • Nov 17, 2008 4:48pm Nov 17, 2008 4:48pm
Here.... this beats the heck out of the funnymentals....... 8 Ball
Same Whore .... Different Dress
  • #9
  • Nov 21, 2008 3:59pm Nov 21, 2008 3:59pm
We all trade fundamentals whether we know it or not. Technical analysis is just a graphical representation of fundamentals. I don't see why you need to understand the underlying fundamentals when the chart is showing you the truth.

Just my 2 pips
  • #10
  • Nov 21, 2008 5:37pm Nov 21, 2008 5:37pm
Quoting willf
We all trade fundamentals whether we know it or not. Technical analysis is just a graphical representation of fundamentals. I don't see why you need to understand the underlying fundamentals when the chart is showing you the truth.

Just my 2 pips
A fundamentalist would say "we all trade technical analysis whether we know it or not. Fundies move the market and form the very charts that techies use".

So who is right? I say neither.

Fundamental analysis and technical analysis are simply that. Analysis. They are tools used to speculate currency value. Nothing more. Nothing less. When price moves, it is generally because someone thinks it is either overvalued or undervalued. A chartist uses support, resistance, patterns, indicators, etc to make value decisions. A fundamentalist tracts numbers and reactions to economic indicators to value a currency. Some people use both. Some people use neither.

When you try and group all speculators into two defined groups of either Techies or Fundies, an then presume to discard one over the other is completely disregarding an entire pool of data and information that is factored into the market every day, whether you like it or not. This is not to say that you HAVE to use both in order to succeed. But do not fall into the trap of thinking that you must be one or the other. Or better yet, do not be fooled into thinking that the market even gives a shit what team you think your on.
Headline: USD drops due to news of USD dropping!
  • #11
  • Nov 21, 2008 5:43pm Nov 21, 2008 5:43pm
Quoting Gaston
Or better yet, do not be fooled into thinking that the market even gives a shit what team you think your on.
LOL


very well said post like the last part especially
  • #12
  • Nov 21, 2008 8:26pm Nov 21, 2008 8:26pm
Technical Analysis for take profit? Never heard of that one before, most people I know who trade ta use advance trade management which is on Ninja trader and they just have trailing stops that widen was you get more profit.

You see with TA, I trade high probability break outs. Now if you predict wrong with fundamentals you lose money, plus there was a extra bit of time doing some research. I pull up the chart look at it on a few TF and then put entry orders with trailing stops that I think would work best from the past data.

High probability break outs with huge lots will always be profitable because you're not predicting where the market will go, that's where it will 90% of the time go when it hits that area.

Just think about it, 4m lots with a usually 100-200 pip profit a week is great money.
  • #13
  • Nov 21, 2008 9:29pm Nov 21, 2008 9:29pm
The question you should ask yourself is, who makes the news?
  • #14
  • Nov 21, 2008 10:12pm Nov 21, 2008 10:12pm
Quoting mitjar
Its obious that fundamental indicators such as news and interest rates move the currency prices so why would anyone even consider using TA and drawing some line on currency charts if its all about the FA?

Is this a serious question, or another "Lets start an argument thread"

This has been debated over and over. I am purely technical, and profitable. I don't care about fundamentals at all. Does that mean I am right? No. Being profitable does.

If someone else is making money using fundamentals, they are right as well. Odd how that works, huh?
  • #15
  • Nov 21, 2008 10:41pm Nov 21, 2008 10:41pm
Quote
This has been debated over and over. I am purely technical, and profitable. I don't care about fundamentals at all. Does that mean I am right? No. Being profitable does.

No joke... Isn't this one of the top 10 most cliched "goes no where" questions of all time?
  • #16
  • Nov 23, 2008 9:35pm Nov 23, 2008 9:35pm
Quoting Gaston
A fundamentalist would say "we all trade technical analysis whether we know it or not. Fundies move the market and form the very charts that techies use".

So who is right? I say neither.

that is saying the exact same thing as "technicals are a graphical representation of fundamentals" so, as for who is right, one opinion out of two identical opinions cant be "right" unless there is a third opinion opposite from the other two, which in this argument, there isnt. lol.
  • #17
  • Nov 23, 2008 10:47pm Nov 23, 2008 10:47pm
Quoting blacksun1
that is saying the exact same thing as "technicals are a graphical representation of fundamentals" so, as for who is right, one opinion out of two identical opinions cant be "right" unless there is a third opinion opposite from the other two, which in this argument, there isnt. lol.
You are missing the key concept that is being argued. The quote "technicals are a graphical representation of fundamentals" is not in question (hence me restating it), and that is where you are confused. The debate lies in the source of information a trader wishes to base decisions on.

Here are the two extremes of the arguments.

FA)
"Funamental factors move price, so why should we look at anything else". This argument implies that the market moves solely through fundamental factors. If this was true, then any time price "bounces" off of support or resistance (as drawn on a chart) a fundamentalist would have to prove that this move occurred due to fundamental information only.

TA)
"All information immediately shows up on a chart anyway, so why even bother understanding funamentals?" This argument states that the information can be interpreted graphically fast enough to make speculative decisions, therefore fundamental understanding is useless. These guys cannot tell you "why" price did anything other than "because it did".

The argument was between which source of info was better. A chart, or an economic indicator. My contribution to the argument was to point out that they are BOTH calculated into price, and by dismissing one over the other you are disregarding a huge market influence. With this understanding I suggest you read my post again, and hopefully it will make a little more sense to you.
Headline: USD drops due to news of USD dropping!
  • #18
  • Nov 23, 2008 10:47pm Nov 23, 2008 10:47pm
Quoting Rabid
No joke... Isn't this one of the top 10 most cliched "goes no where" questions of all time?
I believe this thread just officially went no where.
Headline: USD drops due to news of USD dropping!
  • #19
  • Nov 24, 2008 11:05am Nov 24, 2008 11:05am
Quoting Gaston
You are missing the key concept that is being argued. The quote "technicals are a graphical representation of fundamentals" is not in question (hence me restating it), and that is where you are confused. The debate lies in the source of information a trader wishes to base decisions on.

i already argued my point in a previous post. i was pointing out how funny your statement was.
  • #20
  • Nov 24, 2008 1:30pm Nov 24, 2008 1:30pm
Quoting clockwork71
Is this a serious question, or another "Lets start an argument thread"

This has been debated over and over. I am purely technical, and profitable. I don't care about fundamentals at all. Does that mean I am right? No. Being profitable does.

If someone else is making money using fundamentals, they are right as well. Odd how that works, huh?
Come on guys!!!
This only probes that if you use both analyses you can be unbeatable. The bottom line is: If you can be profitable with fundamental or technical analysis separately. Why are we arguing about which one is the best? Why aren’t we arguing about how to mix them up?

http://www.forexfactory.com/showthre...79#post2373079

http://angelatrix.wordpress.com/2008...eems-far-away/
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