Bitcoin Forum

Economy => Trading Discussion => Topic started by: farrellronald on November 10, 2020, 08:10:56 AM



Title: what is the difference between TA and FA?
Post by: farrellronald on November 10, 2020, 08:10:56 AM
as you may know TA means technical analysis and FA means fundamental analysis.

Fundamental and technical analysis are two major schools of thought when it comes to approaching the markets
  • Fundamental analysis evaluates stocks by attempting to measure their intrinsic value.
  • Technical analysis differs from fundamental analysis, in that traders attempt to identify opportunities by looking at statistical trends, such as movements in a stock's price and volume

While fundamental analysis looks to a larger picture around the price of an asset - considering as many influencing factors as possible - TA is strictly focused on historical market data and market charts. While FA seeks to determine the real value of a trading asset, TA is used as a tool to predict the price action based on trading volume and past trends. Most traders and investors probably agree that both FA and TA are valuable in their own way. So instead of relying on one or another, a contextualized and balanced use of the two sounds more reasonable.
which one do you think is much more important?
and which one do you use more often?


Title: Re: what is the difference between TA and FA?
Post by: Kahoy01 on November 10, 2020, 10:06:39 AM
Fundamental analysis is a type of analysis about company through the use of economic factors, company growth and also latest news that been released by the company behind the token while technical analysis is a type of analysis that focusing on the chart patterns and candlestick of a token. Both of them are good to use and we can combine it. My trading system consists of concepts from technical analysis and also Fundamental analysis there are some who are just using fundamental analysis alone and there are some who use technical analysis alone but what matters is we should use the type of analysis that can help us to make profit in the market.


Title: Re: what is the difference between TA and FA?
Post by: XZERO1 on November 10, 2020, 11:24:22 AM
You covered the subject well enough, these days I'd say in crypto Fundamental analysis is way more important than TA, technical analysis never worked that well on crypto market from the start anyways because of way more volatility comparing to other traditional markets, without at least a decent fundamental no matter how much is likely TA wise that a coin/token price to go up because of being oversold or other TA reasons it can still keep going down and disappoint you and lead to loss on your trade, so before jumping into TA on a coin to find the best entry price make sure it has a good fundamental as well.


Title: Re: what is the difference between TA and FA?
Post by: sheenshane on November 10, 2020, 12:05:48 PM
these days I'd say in crypto Fundamental analysis is way more important than TA, technical analysis never worked that well on crypto market from the start
I won't agree with this statement, it should be both the TA and FA are very helpful stuff analyzing market price.  IMO, I use both because I think it's beneficial to all the traders and the only thing that matters is your own approach in trading.  Sometimes it also depends on how well you understand these analyses like in the case I often use TA because it gives me more accurate information on the trading flow.  And also, it can be used to confirm anticipated trends when will be the best time to trade and when it is not, but of course, the reality is still the same that in trading we always live in speculations and we always rely upon our own judgment.

However, both of them have pros and cons to consider but and I think if you will use TA and FA altogether, there's nothing wrong with that.  The debate over the two analyses was always there, but the fact that it will depend on how you will use it.


Title: Re: what is the difference between TA and FA?
Post by: FanEagle on November 10, 2020, 09:02:03 PM
You can't look at FA in crypto world, I mean you can try but in reality you can't do it. Because FA means you have to find the correct "value" of a stock, in crypto world you can't put a value in any crypto since it is not driven by anything that backs it up, in a stock there are things like company buildings, the debt, the income, the profit, the products and many things basically that you can take a look at to figure out the bare minimum value if you want to, bitcoin has none of that and it is a currency not a stock so there is nothing backing it up.

By this logic the only thing you can do in crypto trading (specially for day traders) is using TA since that would at least give you the idea of what people are thinking about when it comes to direction of bitcoin price movements.


Title: Re: what is the difference between TA and FA?
Post by: Lanatsa on November 10, 2020, 09:19:48 PM
FA = News, events etc.
TA = Indicators

You can spot out the difference directly and in talks on which one would be worth to be used into your analysis then you can do both if you do able to do so.

It doesn't matter which one and as long you do able to make profits or money then that's what matter most.To know that we cant just have always some news
to rely on that's why majority do really end up on using technicals.


Title: Re: what is the difference between TA and FA?
Post by: goaldigger on November 10, 2020, 09:28:11 PM
FA and TA complement each other and you should know how to analyze using these two especially if you are going to invest on a long term basis. Since I’m a trader, i often use TA and its effective and of course I also have to use FA to see if there’s a possible volume with that project so I can know my entry and exit level. Your investment will become more effective if you used this two as your guide, they are both important to me.


Title: Re: what is the difference between TA and FA?
Post by: maxreish on November 11, 2020, 04:21:45 AM
FA = News, events etc.
 TA = Indicators
 

 Yep, that's how it can easily be explained. Others might be confused about the difference between the two [FA and TA] . Lemme add that Fundamental analysis is theoritical that we may see it's intrinsic value and Technical analysis is practical. But if we incorporate these two tools in our trading activity, as long as we know how to use those then we can probably benefit from it.


Title: Re: what is the difference between TA and FA?
Post by: teosanru on November 11, 2020, 05:14:24 AM
as you may know TA means technical analysis and FA means fundamental analysis.

Fundamental and technical analysis are two major schools of thought when it comes to approaching the markets
  • Fundamental analysis evaluates stocks by attempting to measure their intrinsic value.
  • Technical analysis differs from fundamental analysis, in that traders attempt to identify opportunities by looking at statistical trends, such as movements in a stock's price and volume

While fundamental analysis looks to a larger picture around the price of an asset - considering as many influencing factors as possible - TA is strictly focused on historical market data and market charts. While FA seeks to determine the real value of a trading asset, TA is used as a tool to predict the price action based on trading volume and past trends. Most traders and investors probably agree that both FA and TA are valuable in their own way. So instead of relying on one or another, a contextualized and balanced use of the two sounds more reasonable.
which one do you think is much more important?
and which one do you use more often?
I think for stocks this question is appropriate as we have both sorts of option because of availability of data files by companies with regulators but when it comes to cryptocurrencies we don't have data to do any fundamental analysis. Intrinsic value is basically calculating present value of future cash flows from an asset which is pretty difficult in cryptospace. So TA is the only residual option that you can use.
FA = News, events etc.
TA = Indicators

You can spot out the difference directly and in talks on which one would be worth to be used into your analysis then you can do both if you do able to do so.

It doesn't matter which one and as long you do able to make profits or money then that's what matter most.To know that we cant just have always some news
to rely on that's why majority do really end up on using technicals.
FA doesn't means news/ events. FA can include News as a component but news/events are equally important part of TA too. FA is more about financial of the company and it's interpretation. News are generally in public domain with not much interpretation so their effect is already discounted.


Title: Re: what is the difference between TA and FA?
Post by: Wexnident on November 11, 2020, 07:09:21 AM
Both TA's and FA's are important, there really isn't any useless info when it comes to the two, cause if there was, the existence of either one would have been shunned and wouldn't have even been considered when trying to make an analysis of the market. Although their use to use basis depends on the market you have, it is still nonetheless useful to actually use both when trading. This doesn't necessarily mean that you have to use both, you can use one over the other if that was your preference.

In the concept of Crypto though, I'd have to say that FA sometimes doesn't really affect how the market works, but hey, who says it's a guarantee right? So might as well add FA's when you're doing market analysis, even with the crypto market. They're still useful in determining how the demand of a certain coin goes since even if crypto isn't backed by anything, the reactions of the ones that trade with it could be a good factor in determining possible price movement.


Title: Re: what is the difference between TA and FA?
Post by: Harriti on November 11, 2020, 07:30:53 AM
as you may know TA means technical analysis and FA means fundamental analysis.

Fundamental and technical analysis are two major schools of thought when it comes to approaching the markets
  • Fundamental analysis evaluates stocks by attempting to measure their intrinsic value.
  • Technical analysis differs from fundamental analysis, in that traders attempt to identify opportunities by looking at statistical trends, such as movements in a stock's price and volume

which one do you think is much more important?
and which one do you use more often?
In my opinion, FA will be a lot more important than TA for my portfolio. I rarely trade margin, I just often Spot trading at Binance and other big exchanges. Meanwhile, the timing of buying / selling will be accurately predicted on the data for FA analysis.
i mean, after analyzing I will know how the market works as well as the psychology of the crowd. From there I will get myself a perfect trading plan in the long term.


Title: Re: what is the difference between TA and FA?
Post by: KnightElite on November 11, 2020, 11:33:20 AM
FA and TA complement each other and you should know how to analyze using these two especially if you are going to invest on a long term basis. Since I’m a trader, i often use TA and its effective and of course I also have to use FA to see if there’s a possible volume with that project so I can know my entry and exit level. Your investment will become more effective if you used this two as your guide, they are both important to me.
Most traders usually are relying on technicals especially the short terms traders who are using short term time frames like 5 minutes, 15 minutes and 30 minutes time frame. You cannot use fundamental analysis by using that kind of short-term time frame chart. In terms of long-term trading wherein we are talking about weekly and monthly charts, fundamental analysis can be useful as long as you will not fully rely on that because price action is still the king and our decisions should be relying on the market structure. Actually as a technical analysis user, I always following the phrase which is "You are always wrong until the market proves you right" that phrase is simple and it just reminding that we should follow what charts telling us.


Title: Re: what is the difference between TA and FA?
Post by: rijaljun on November 11, 2020, 02:19:41 PM
I think you wanted to cite where you get the meaning since you might get ban because of it. For the fundamental analysis I think it's good for long term prediction, analysis of the project and industry while the technical analysis it's more like a the chart reading such as moving average, support and resistances, etc.


Title: Re: what is the difference between TA and FA?
Post by: palle11 on November 11, 2020, 03:41:21 PM
The difference between Fundamental and technical analysis are clear to understand how trade happens. Fundamental is really about the government information about the policies they are doing in the market. This is important because it is very risky if you come against it. It is the most risky as it is possible to cut your account of guide if news that is negative to the market happens against the way you trading on your technology. As about technical analysis, it is your personal chart draw or that of others seen in social media or YouTube.