FX trading isn't just TA or FA alone | Forex Factory

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FX trading isn't just TA or FA alone

  • #1
  • First Post: Sep 10, 2015 1:15am Sep 10, 2015 1:15am
The biggest problem when using TA is that many people have a math mentality when trading FX due to math they did in school. Say in school during math class there's a question. Most of the time the answer is definite. There isn't an estimation. People then take this mentality when trading and expect to find the same type of results when in reality that isn't the case.

I also noticed that when they teach you on trading strats like say fib lines for example they try their darn best to find graphs that fit what they want to teach but technically speaking they should be able to use any graph they want. Take say fib retracement lvls. Not every graph will show the correct retracement lvls that's why they need to pick and choose.

It is very difficult to trade using just TA and i believe if you trade just using TA you're seeing just half the picture.
  • #2
  • Sep 10, 2015 6:43am Sep 10, 2015 6:43am
Quoting forex_fairy
The biggest problem when using TA is that many people have a math mentality when trading FX due to math they did in school. Say in school during math class there's a question. Most of the time the answer is definite. There isn't an estimation. People then take this mentality when trading and expect to find the same type of results when in reality that isn't the case. I also noticed that when they teach you on trading strats like say fib lines for example they try their darn best to find graphs that fit what they want to teach but technically speaking...

Depends on what kind of TA you are referring to. If it is the ones that you could find in books, then know that most of those do not work.

However, the market is predictable to the eyes of a seasoned trader.

You can't get that reading books though reading books are the preliminary. To be a very successful trader is very hard.

To be a mediocre one though follow these steps. Understand how and why the market moves(See it as orders executed). Read books and study the chart of one instrument and understand how it moves. Then make a set of rules that you know the market usually obey. Do that and you can be profitable.

Fundamental reports won't make you a profitable trader if you don't trade the news.
  • #3
  • Sep 10, 2015 8:08am Sep 10, 2015 8:08am
Quoting forex_fairy
The biggest problem when using TA is that many people have a math mentality when trading FX due to math they did in school. Say in school during math class there's a question. Most of the time the answer is definite. There isn't an estimation. People then take this mentality when trading and expect to find the same type of results when in reality that isn't the case. I also noticed that when they teach you on trading strats like say fib lines for example they try their darn best to find graphs that fit what they want to teach but technically speaking...
Neither technical analysis nor fundamental analysis can dispel uncertainty.

Any method or mix of methods is applicable as long as it is used to manage risk.

Oh, and consider the efficient market hypothesis. All fundamental data is already accounted for in price.
  • #4
  • Last Post: Sep 11, 2015 4:33am Sep 11, 2015 4:33am
is price action is an TA?

focus on the price (price movement) itself is better then any others TA ( i assume that the TA you refer to is indicator)
because price itself do not know/obey any TA. price have no idea when the MA corss,trendline, RSI, support and resistance. price are just itself.

but ofcause use TA as tools to help you see the price/chart clearer.
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