Fundamentalist or Technicalist?

[dhanpreet]

Fundamentalist or Technicalist?

 

What is a Fundamentalist and technicalist?

Hehehe ... Well, among the traders, known as 2 "flow" a trader is: Fundamentalist and technicalist. This distinction is based on trend analysis used by each trader.

 

In general, there are 2 types of analysis in forex trading:

 

Fundamental Analysis

 

That analysis is based on the news (news) that affect the value of our currency trading.

 

Traders who use fundamental analysis in the trade are often classified as Fundamentalist. They look at the news (news) that influence the currency value of the pair that they are traded.

 

There are a lot of news that could affect currency values, both the direct and indirect. What are the news that influential? In general, does usually news related to the economy or politics of the country whose currency you are trading. So for example we trade the pair EUR / USD, then we need to pay attention to news from European countries and the United States.

 

Maybe you think: oh gosh ... then where we can monitor or know of any such news? Do not worry, now there are many sites that provide data about the news was accompanied with an estimated impact on a particular currency pair. So if meets these demands and more interested to join the Fundamentalist, frequently visited sites that provide news related to currency rate movements. Or, where we are trading brokers also usually provide facilities notification (alert) about going to the news.

 

Well, the Fundamentalist is a lot of use of chart movement that usually do experience extreme movement when and after the news came out. For pair-pair such as GBP / USD, the movement before and after the news can be for 20-50 pips within no more than 15 minutes. That is why the Fundamentalist usual brisk market in times when news was released.

 

Technical Analysis

 

In contrast to the Fundamentalist, technicalist traders prefer to "get away" from the market just before and after the news was released. They likened the rapid movement due to the influence of short-term news as well as a pool that is being stirred the water, so it looks "cloudy". That is, the movement of the "original" of a pair is not visible at a time like that so they chose to wait for "water" calm down and show the "true nature" of his return.

 

The technicalist further analysis based on movement history chart. Basically, the technicalist is believed that it will chart the movement of history repeating itself, and in something that looks random, hidden certain patterns that can be understood if it can be used to find out what is and will happen to the movement chart.

 

Trader technicalist "communicate" with the chart through indicators. From the signal given by this indicator, we know what is going on or "performed" by a pair. The questions such as: "doing this again the GJ? Where she's going, up or down? "Can be answered by looking at the signal given by the indicator

 

There are many indicators that can be used in forex trading. Usually each trader technicalist indicators that have become their mainstay, according to the indicators of understanding them.

 

Well, you chose to become a Fundamentalist or technicalist?

Well, actually it does not have to be distinguished strictly like that hell ... There is also a trader friend who chose to be both: D Those indicators that have become the mainstay, but also enliven the market when news was released. All is fine ..., do your what you're going to ...

That was nice to be a trader ...

[omarelalfy]

In contrast to the Fundamentalist, technicalist traders prefer to "get away" from the market just before and after the news was released. They likened the rapid movement due to the influence of short-term news as well as a pool that is being stirred the water, so it looks "cloudy". That is, the movement of the "original" of a pair is not visible at a time like that so they chose to wait for "water" calm down and show the "true nature" of his return.

[standart]

I am always concern with fundamental news because can affect significant price movement. but now I am ignore it fundamental news and focus more to technical analysis. because the affect of fundamental news sometimes is only bounce and not affect significantly to trend. because I prefer technical analysis, so I am technical trader.

[ellliottt]

I use both fundamental and technical analysis. but while trading i am a technical trader. fundamentals decide the main long term trend, and technicals for entry/exit decisions. generally the time spend on fundamental analysis is very less as I dont want to get lost in unnecessary details.

 

[yogeshwartyagi]

I agree with you @ellliottt in short term trades what matters is technical but fundamentals are

as well important as they play important role in long term. Further technicals are not unreasoned

but they help us understand the levels where most traders are going to make fresh long or short entries.

[boniez]

many of the fundamental and technical did not get along. but I think both are equally important. and I know that the world is able to master technical analysis or fundamental, since they are an important factor in the forex

[bringpeace]

many of the fundamental and technical did not get along. but I think both are equally important. and I know that the world is able to master technical analysis or fundamental, since they are an important factor in the forex

 

You right, fundamental and technical is factors in forex that we must know. I technical trader but sometimes i need check news and combinate it to make good predictiom amd laso with fundamnetalist, they sometimes need to check indicator too.

[stezz]

why the technicalist gwt away if the news comes ??

[heartboy23]

Thanxs for sharing this i hope i'll learn more and more for you guys

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[standart]

fundamental news is many and sometimes, the pattern and effect not exactly clear. if I take fundamental news seriously, it will lead me to have assumption about the market even before the fact of market movement it self. because I am short term trader, I am seriously concern in technical analysis only.

[pepy]

i am an hybrid, i wil trying to balance the way i want to earn from forex, with become technicalist or fundamentalist, it is depend on the traders too but i prefer to be this way because i think this is the best way for me to minimize while at the same time increase my profit

[euro]

I'm more of both. I trade when there is a trend since I'm a scalper so I will trade for short term only so long term indicators or problems don't concern me. I will be in a trade for five minutes or so and it does not matter to me. I tend to watch news a lot and if there is a wave I will jump in and scalp some money. Now, there are always a great chance to make money during trends for news releases like the recent Syria releases, I was able to see a lot of profitable trends. 

[myregister]

I am a pure fundamentalist, but still thinking that technicalist could help but rarely use it. I think that fundamentalist does not need much analysis, especially if news already clear enough to be a high impact news, aside from that we don't have to trade everyday, just following the news.

[pepy]

No matter what you are as long as you able to make profit with by using either of these two strategies or combining both as long as you can get more profit then it's most important thing. Fundamentalists usually focus on fundamental things like news or rumors, while technicalist focus more on proven indicators like RSI or MACD.

[myregister]

Yes, we are. Well actually i am more fundamentalist rather than technicalist, in my own humble opinion i think that fundamental analysis is the core of foreign exchange itself, imagine a forex world without news or data as our own indicators, of course we need it and you know 80-90% movement on the market is because of fundamental issue from economic related to political related.

[pepy]

Being non pure fundamentalist i feel that trade through fundamental only way is not really good you miss the point or advantage that technical analysis will give to you. Being pure technicalist also isn't good at all, because this is decentralized market not a centralized one where you can simply predict it through technical issue.

[Sininfinity]

 

No matter what you are as long as you able to make profit with by using either of these two strategies or combining both as long as you can get more profit then it's most important thing. Fundamentalists usually focus on fundamental things like news or rumors, while technicalist focus more on proven indicators like RSI or MACD.

 

Not all technical traders use indicators. There are many naked traders who has trained their eyes to read the chart without any indicators. Also funamental analysis takes a lot of knowledge to do prediction and technical analysis is comparatively easy.

[myregister]

Hm, without using indicator but use charts? I guess that is indicator too, fundamental use not just calendar but also sometimes rumor not really hard but not so much easy thing to do. I find various type of technical analysis style is so much overwhelming to simple straightforward fundamental style i've learnt so far.

[pepy]

Not all technical traders use indicators. There are many naked traders who has trained their eyes to read the chart without any indicators. Also funamental analysis takes a lot of knowledge to do prediction and technical analysis is comparatively easy.

 

I wonder, but from my experience technicalist use indicators too. Fundamentalist use indicators and even Sentimentalist LOL use their own indicators. Naked trading is indicator-less, use those candlestick as the indicators or a thing to decide your next step whether to open a position or closing the position, basically you just use it, so still use indicator to me.

[Sininfinity]

I wonder, but from my experience technicalist use indicators too. Fundamentalist use indicators and even Sentimentalist LOL use their own indicators. Naked trading is indicator-less, use those candlestick as the indicators or a thing to decide your next step whether to open a position or closing the position, basically you just use it, so still use indicator to me.

 

Technically you are correct. lol Traders use methodologies which gives them indication of what market may do next. So it can be called indicators. But let's not over complicate things and the way each type of trader describes themselves will be better to call them that.

[Ariel Dala]

We need to be wise with these things. It’s just not possible to succeed with just one way, so we need to be prepared for all! I always take both sides into consideration since I know the importance of each. I am able to do analysis myself, but I follow up my broker FreshForex. They are amazing with their mighty Market Analysis system, which covers the whole distance and helps me in really major way.

 

[Beginner FX]

I use both. I think that without fundamental and technical things there is something lacking in seeing the trend going forward (which is certainly a profitable trend)

[Nselaine]

Due to the crisis in the market, I think technical analysis is not an assistant to us.

[Yokora]

I completely agree with you. We will wait for the situation to improve.