Fundamental Analysis or Technical Analysis - which is more important?

[phillymogul]

We live in a data driven world and it is the heart of smart investing decisions. 



We often see people posting charts with lots of candlesticks and predictions.
Sometimes their info is helpful and other times the crypto market does the total opposite.
 
Technical analysis, involves making predictions based on past data on charts.
Fundamental analysis, looks at news headlines, economic data reports, and other relevant factors.
The goal is to accurately predict price movements in the market.

Traders and investors may use both methods.

But as an investor or trader which do you trust more? 
 
More info on fundamental analysis for beginners:
https://cryptoandforexnews.com/tesla-overtakes-the-combined-crypto-market-cap/

[Lanatsa]

But as an investor or trader which do you trust more? 

Its better to have both when you do have the chance yet we know that fundamentals doesnt come out very often which means if you do rely on news and other aspect then you would really be on stagnant knowing that
this market doesnt generate out time to time news unlike on traditional markets like forex and stocks.

Fundamentals and technicals can be correlated but we know that no matter how good your analysis is, it is still bound to fail yet this market is always been unpredictable.It can neither break nor follow those kind of analysis.

When it comes to importance then it all vary on which one do give out profit into you but majority is been using technicals in regards into their trades.

[NavI_027]

Fundamental analysis, looks at news headlines, economic data reports, and other relevant factors.

Ahh.. So the influencers that can be found in the environment are called Fundamental Analysis . Now I know! Thanks mate.
But like what you've said, traders usually use both methods as it helps them to be more effective in daytrading. So what's the point of choosing one only. Anyway, if there should be only one which weighs greater then I would choose the Technical one. You don't need to know every detail of the news because it will manifest its effects on the chart later on. Thus, reading the trend requires more focus than anything else (IMO).

[GreatArkansas]

For me, this two type of analysis are far different.
So when you are trading and use either of the two (fundamental or technical analysis) then it's ok, you still foundation and bases why you take this trade.
For me, I recently use more on technical analysis for trading.

[TradingBull.io]

Depends on the situation/context.

Day trading (short term returns) will rely more on technical analysis (chart, onchain, sentiment)
Long term investment, better to go deep in fundamentals.

Both have their difficulties.
Betting on older projects with proven track record (BTC/ETH/LTC...) is the safest but probably the less rewarding % wise

[Oasisman]

But as an investor or trader which do you trust more? 

These two types of market analysis is a perfect complement for each other. It's not that which type of analysis you trust the most, but it's the source of the analysis. Nevertheless, there's no way someone could predict the price accurately, despite the fact that these are so called "analysis", but these are just also a prediction backed up with relevant analysation of past and future references.
I guess there are more fundamental analysis sources than the TA's nowadays. So, the question should be, which sources do you trust the most?

[LitLitBit]

It’s not an either or. You want to have a fundamental analysis view or bias for a certain narrative assumption and you would then use technical analysis to have higher efficiency entries and exits.

[slapper]

But as an investor or trader which do you trust more? 

Its better to have both when you do have the chance yet we know that fundamentals doesnt come out very often which means if you do rely on news and other aspect then you would really be on stagnant knowing that
this market doesnt generate out time to time news unlike on traditional markets like forex and stocks.

Fundamentals and technicals can be correlated but we know that no matter how good your analysis is, it is still bound to fail yet this market is always been unpredictable.It can neither break nor follow those kind of analysis.

When it comes to importance then it all vary on which one do give out profit into you but majority is been using technicals in regards into their trades.

I totally agree with you. Its always better to know both kinds of analysis in trading because they are both helpful. Understand two different concepts will help you to understand the market deeper and therefore, there will be more information generating for you in order to put a trade. However, having too much knowledge can be a double-edged sword because you dont know where and when to use your analysis. The practice is certainly necessary so as you can become more flexible and open-mind on each unique edge in trading

Trading is depending on you. Everything is related to your hobby and your disciplines. The more disciplined you are, the more stable your income will be

[exstasie]

Most technical traders will tell you everything (including fundamentals) is reflected in the price chart. I tend to fall into this camp. Price is the truest expression of supply and demand. Strong underlying fundamentals show up as weak supply (people don't want to sell) and strong demand. Vice versa.

I do like to keep track of fundamental events. For example, when nonfarm payroll data and unemployment numbers get released, or when CME quarterly Bitcoin futures get settled. These can catalyze price moves even if they aren't necessarily causing them.

[Serco]

If we expert on technical or fundamental analisys,we will be good traders. having routine research for every project will give us hidden information that could be potecny as future GEM. by learning technical we understand price action and its analisys, and by fundamental we will know what 's new that will released in near time so will give influence to market or price. expert on  both of them make us best trader ever, and easily get profit from every new coins.

[DevilSlayer]

It depends on the trading system and the profile of the trader, if you will ask me if what is more important; my answer is technical because I'm used to it and my trading system are purely base on technical analysis. I know that news are important but I'm not a trader who are relying on it, I respect the ideas of some fundamentalist; fundamental analysis are actually working for some people but for me it is not working and it is the reason why I keep focusing only in technical analysis. If you want to learn technical analysis, this forum can help you and remember that we are now in information age where you can access a lot of concepts and ideas about technical analysis by searching it in the web. Find a trading system that can help you to build your own foundation that can give you profitable trading career.

You must focus first on reading the candlestick, a lot of people are failing in this basic part and you should master it and also the reversal candles because it is important. After that try to master the identifying of trends because in technical analysis, "trend is your friend" wherein you should base your decisions on what is the trend of the coin that you are currently trading.

[wxa7115]

Depends on the situation/context.

Day trading (short term returns) will rely more on technical analysis (chart, onchain, sentiment)
Long term investment, better to go deep in fundamentals.

Both have their difficulties.
Betting on older projects with proven track record (BTC/ETH/LTC...) is the safest but probably the less rewarding % wise

It is as simple as that, while both tools can be used to earn money in the markets their nature is completely different and as such they apply in different cases, anyone that is looking to trade their coins in a very small time frame should use technical analysis and nothing else because at that time fundamental analysis is not going to have almost any effect on the charts.

But if you are looking to become a positional trader or an investor then fundamental analysis is more important than technical analysis and while is important apply both the truth is that you could safely forget about technical analysis in those conditions and only care about fundamental analysis to decide whether or not you invest in a coin.

[Bitum]

I think both of these methods don't work properly on the crypto market because it's not a regulated market. I still tend to go with fundamental data

[starseeker]

But as an investor or trader which do you trust more? 
 

Fundamental analysis is at the core of trading (crypto or otherwise). This is just like theoretical knowledge. But for practical applications you need to be well versed in performing technical analysis. This is the practical knowledge part. If you can't do this then it's better you hire a fund manager kind of guy to do the analysis for you.

[thesmallgod]

Both technical and fundamental analysis can be made to predict a possible future price. Just like you have said, both do not offer 100% on anything but when you look at the past history of some coin, you will discover some repeated pattern which makes it easy to predict the price however, news and event can sometime influence this repeated chart history but both can provide a baseline for predicting the price at a point

[stomachgrowls]

Depends on the situation/context.

Day trading (short term returns) will rely more on technical analysis (chart, onchain, sentiment)
Long term investment, better to go deep in fundamentals.

Both have their difficulties.
Betting on older projects with proven track record (BTC/ETH/LTC...) is the safest but probably the less rewarding % wise

When it comes to percentage gains when these established coins wont really give you that much specially on a shorter time frame this is why majority would really end up on recognizing into those projects that has less price but actually a more risky type kind of decision imho.

Involving with trading will matter on which path you would choose into and it would be subjective because not all would really have the extra time to deal with the market on an active manner thats why they do chose
on long term swings and basing of with news or fundamentals.

For people who do have the ample time then active trade would suit them and as you mentioned both do have their difficulties but you can actually switch up in both methods depending according to your likes
or preference.

[crwth]

If I had to choose between the two, it's easier to follow technical analysis because you are right there, and it's made to for you if you are the one charting it. The consequences for it are that you would be biased to your chart, and if it went the opposite direction, you would get discouraged unless you have a solid trading plan.

On the other hand, I would consider fundamental analysis if and only if it is significant and relevant to the current situation that we have now. Like recently, with the pandemic, the price has gone down, and it recovered.

Basically, it depends on the situation. It doesn't matter if you use TA or FA. What matters is to stick to your plan and be strict about it.

[sheenshane]

Basically, it depends on the situation. It doesn't matter if you use TA or FA. What matters is to stick to your plan and be strict about it.

I tend to agree with this matter. You can use both of them too if you want to have a good forecast of price movement.

Either which analysis you will use that is the same predicting the market price movement.
Don't stick any of them if there's an opportunity to grab then, grab it. For example, you have technical analysis and you have drawn your chart already, but there is an opportunity that might you will get profit. So you will refuse it because you need to follow your chart. That's the wrong perception, you need to balance them and analyze very well. You can always have a comparison between both TA and FA to get an accurate results in predicting.

[crwth]

I tend to agree with this matter. You can use both of them too if you want to have a good forecast of price movement.

I think the most important factor would always be the risk that you are willing to put into trades and putting a stop loss in order to limit the amount of losses that you could incur while having the open position on the market. First of all I think the understanding of different factors in trading should be important as well, no matter what you are going to do, have a trading plan and follow it.

[Wexnident]

It's a matter of bias or subjective judgment imo. As long as you aren't swayed by possible mistakes, since you've taken into account mistakes and errors when doing your analysis, any types would do. It's not like either analysis' hold an advantage against each other, both of them have their own strong points and weak points. Not to mention that they have different usage based on what trading you're really doing. Still, there's nothing wrong with learning and developing the both of them, since any knowledge you can get can be used one way or another in trading.

I think the most important factor would always be the risk that you are willing to put into trades and putting a stop loss in order to limit the amount of losses that you could incur while having the open position on the market. First of all I think the understanding of different factors in trading should be important as well, no matter what you are going to do, have a trading plan and follow it.

A plan is a natural prerequisite in doing everything, not just trading. Sure, doing yolo moments once or twice could prove to be helpful, but life ain't really easy for everything to go your way. Besides, yolo could also be considered a plan, just that there's no plan.