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Thread: What Came First ... Fundamentals or the Technicals?

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    Default What Came First ... Fundamentals or the Technicals?

    am honored to share my thoughts on our methodologies, focusing on the current technical movements and conditions of the FOREX Markets, i.e. USD traded against the major world currencies such as the EUR, JPY, GBP. Let me ask this question. In your opinion, what drives the markets first ... Fundamental conditions or technical movements?

    I am sure you all have an opinion. Perhaps you have never even though about it. My belief is and what I have found that what works for me is the reliability of the technicals out performs the reliability of the fundamentals. Even though I strongly recommend, every trader must be aware of fundamental announcements, i.e. Governmental reports, Central bank decisions, interest rate changes etc. as best they can before they trade. My methodologies and rules for trading as well as risk management are based off of the technical movements (technical analysis) in the market.

    If a trader wants to play this game and find long-term success, the best thing they could do for themselves is create a trading plan with a checklist of criteria for entry, and exiting positions. Creating a trading plan before entry plays a large part in avoiding emotional decisions and staying structured in your trading. After all, the worst time to check your fuel as a pilot is after the plane has taken off. The reason there are less accidents in the air, verses the ground, is due to well thought out flight plans by pilots, who create several alternative scenarios should things go wrong. I have come to the realization that, not only does Murphy's Law apply to trading in the markets, Murphy's primary residence is found in the trading charts. If any thing can and will go wrong, It will go wrong.

    Trading is not a game of chance or luck. It is a solid means of creating income. It can be like playing a game of chess. At all times, there are several scenarios that can take place. The expected move of the market is usually not in the direction we thought and the out come is like playing chess with an expert. They have a habit of blindsiding you as you play with the out come of the game ending unfavorable and a lot earlier than you anticipated. Income comes to those who approach the market with knowledge and a serious level of disciplines. Safety and longevity in trading comes from properly educating yourself on how the markets work first and then knowing how to manage your risk.

    Having said that let me get started with our approach in trading on the FOREX.

    I don't care how you look at the market. It can only move up, down and sideways. The question is, on what time frame?

    Every day the market is filled with traders who have different opinions of which way the market is moving. I have learned that one of the reasons they think and feel so differently is based on the charts and time frame they are looking at. A trader who looks at daily charts may think the market is trending up, while a trader who looks at a 60 minute chart may think the market is trending down. The fact is, they may both be right.

    The question is, how are they both right? What were the signs or analysis that made them both right? It comes down to understanding technical analysis and whether your trading style is that of a day trader / scalper or long-term position trader. We have created a trading methodology that includes 4 major aspects of Technical Decision making:

    Candlestick Formations
    Fibonacci Corrections / Retracements and Extensions
    Financial Breakouts
    Trading in the direction of the trend using Trend lines

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    thank you

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    I don't care how you look at the market. It can only move up, down and sideways. The question is, on what time frame?
    On every time frame market moves up, down and sideways.
    Time frames show what kind of player You are :

    * Intraday( day-trading )
    * Short-term ( swing )
    * Long-term

    So I think best choice is to match time frame up with Your personality.

    ..and don't forget to check higher time frame

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    wht comes first? Fundamental or technical. it sounds wht comes first? Egg or hen? Actually both comes first and both comes last. To trade succesfully you have to care both. I care both but i see fundamental 1st. If my technical speaks as fundamentals do then I pull the trigger. Simple!

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    Technical trading rules the days but when fundamental comes around it overrules the technical whatever for the time its around.

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    Default What Came First ... Fundamentals or the Technicals?

    I think that the good trader should take by both the fundamental and the technical analysis. Actually I used them both. However, I myself depend more on the fundamental in my trading stategy.But this does not mean that the technical is not used. What helps me more is the advisor. In fact all what I need is on my platform thanks to it

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    i think fundaments would have come first coz in the early days trading was done by relatively small no. of people and when the participants grew there came more elements to price determination like, crowd psychology and related disciplines, to tackle such issues came technical analysis.

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    Bullish IndigoSUN's Avatar
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    I prefer technical analys to go in to market
    but before opening a position i review news, it`s enough for me

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    we can profit from just doing technical analysis but a stratagey which combines both fundamental and technical is the best. Always review the news before entering a trade coz a news release at the time your jump into a trade could totally derail your trading plan. its like looking both sides of the road before crossing. If you are using just technical analysis you will have to be very patient for the right opportunists.

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    Fundamental will always come first. Those big boys are playing with fundamental and they are those news maker. Technical will always comes later. Those big boys the make the news and they profited from the news also.

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    i always trade with tecnical and donot trade before and after news times

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    Technical indicators can doubt you too, sometimes, RSI and moving average tells you that the price is going to rise while the fibronocci rations tell you the price is going to fall, and in my experience, the price rises in short term and falls in long term, the thing is, even indicators sometimes goes into conflict.

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    ceestech
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    I am confused and now meant to ask which of these analysis is better for short term trades.

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    Hello ceestech

    Fundamental analysis takes a relatively long-term approach to analyzing the market. While technical analysis can be used on a timeframe of weeks, days or even minutes, fundamental analysis often looks at data over a number of years.

    Good luck
    ilearn2t

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    ceestech, you are confused????....Welcome to the club as, I can assure you, we all are just as confused when trading the forex

    If you are a Newbie (new to forex trading), don't worry too much about all that for now because as you matured and gain more experiences, you will find your very own trading style and strategy (ies).
    Just let the learning process take its natural course...try to enjoy and have fun with trding the forex....and one day you will know what's best for you to trade comfortably and confidently.

    By all means, do take advices from seasoned Forex Traders, but nobody can teach you how to trade because you will have to discover that by yourself.
    Everything else, from forex books, analysis, articles, etc are just learning aids and you, and only you alone, will have to make the crucial choice on how you are going to trade the forex for the rest of your natural days.

    Good luck!
    "Making Profit IS EASY, keeping it IS NOT!"

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