Fundamental Analysis or Technical Analysis - which is more important?

[Ridwan Fauzi]

As a day trader technical analyst is more important to me, I mean I just need to see some news first before I start to trade and the rest I'll just focus on technical analyst. It would be different if the movement price change drastically then I'll find the information again, without that I never check again.

Sometimes, that we think is a good news and we expect that the price will change but it doesn't happen. So it would make me confused if I combine the both strategy if I choose a day trader. Because I just need a little time to wait after I got an entry, I only use 1 hour time frame and 15 time frame.

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[maxreish]

I most oftenly use technical analysis but I see to it that I checked fundamental analysis for further knowing and understanding where does that coin will be possibly leading (whether go pump or eventually dump). Both are significant and both can be useful in trading but it all depends on how we treat those tools to become efficient in our trading. There is a great impact honestly, if we incorporate it together in our trading. However, not everyone are fond of using both of these.
 
 On the other hand, the success rate is greater when using these two methods ( both TA and FA) since analyzing the crypto market is confusing.

[Shasha80]

I believe more in technical analysis than fundamental analysis, because based on my experience during the last few years of trading.
Indeed, technical analysis can easily determine the selling / buying price, because technical analysis is quite accurate in predicting
price movements. Meanwhile, fundamental analysis is often inaccurate for determining price movements in the market.

[hulla]

I believe more in technical analysis than fundamental analysis, because based on my experience during the last few years of trading.
Indeed, technical analysis can easily determine the selling / buying price, because technical analysis is quite accurate in predicting price movements. Meanwhile, fundamental analysis is often inaccurate for determining price movements in the market.

I agree with what you said cause Technical was what most crypto trader use and Fundamental analysis shouldn't be excluded in other not to miss out great opportunity but the trading analysis is just a way of predicting the market next direction. However, a single whales decision can change the whole analysis and what's important is knowing when to exit the market and having a good stop loss strategy.

[justdimin]

I believe that you can combine them both if you really want to make a change, you do not have to follow just the one or the other, you can make both of them work at the same time if you really want to. For example? You could check the TA as much as you want, start with that, it is the most important part and with more you check the more chances you are going to face because putting time in research is the most important part.

Let's say you did all the legwork and you found something that could help you out, that moment you switch into fundamental, at that point you start to read the gossip places and you start to read the news and that way you now have one coin you want to invest in because of TA but you also know what people are saying about it as well.

[gabbie2010]

I most oftenly use technical analysis but I see to it that I checked fundamental analysis for further knowing and understanding where does that coin will be possibly leading (whether go pump or eventually dump). Both are significant and both can be useful in trading but it all depends on how we treat those tools to become efficient in our trading. There is a great impact honestly, if we incorporate it together in our trading. However, not everyone are fond of using both of these.
 
 On the other hand, the success rate is greater when using these two methods ( both TA and FA) since analyzing the crypto market is confusing.

As a forex trader I focused majorly on technical analysis for my trading decisions while taking into cognizance the importance of fundamental analysis as the mover of the price ie price volatility I always avoid trading one hour before or after any news which I believed will rubbish whatever analysis I had made before pulling trigger to buy or sell.
While some traders focuses more fundamental analysis in taking their trade despite the massive dumping and pumping ie high volatility occasioned in that period of time while I believed both analysis are very important in any trading plan and strategy.

[Arkann]

I believe that there is no need to look for which analysis is the most important, since fundamental and technical analysis are fundamentally different from each other and provide separately very important information for an investor and a trader, because fundamental analysis provides general information about a coin - is it worth buying at all and what there may be prospects. And technical analysis provides an opportunity to predict the course of a certain coin within a specified time frame.

[imstillthebest]

echnical analysis comes with a word technical which sounds hard but it is really hard looking at the charts when you have no experience on trading but fundamental analysis looks doeable based on its definition because it says data from the news and events  . this is also more accurate because you arent depending on past data like what you did on t.a but you can make your move based on the current or future happenings let say if theres a good news or a bad news related to cryptos .

[StephenJH]

Long story short: I use fundamental analysis for finding the potential direction and technical analysis is needed to find entry/exit points. For finding the trend direction using the indicators is useless unless there is a schedule on the calendar during important news. Technical analysis is based on statistic data which is collected from the chart itself, why am I supposed to play with indicators instead of directly analyzing the chart itself?

[exstasie]

Long story short: I use fundamental analysis for finding the potential direction and technical analysis is needed to find entry/exit points.

Trend direction is completely technical in my view. The reason they say markets can stay irrational longer than you can stay solvent is because fundamentals can diverge from price for long periods of time. TA is for both determining trend direction and entries/exits.

Fundamental analysis is all about finding value, as in cheap price vs. expected returns. So a fundamental investor might buy into a bear market on the basis of value alone, even though that means trading against the trend.

[Nellayar]

Fundamental Analysis + Technical Analysis is equal to a good profit.

We should not argue with this two because we can choose either an FA or TA depending upon the strategy and methodology that will support your trading. It is also good to know the three kind of analysis and master them all. I said Three analysis because Sentimental Analysis can be also use in trading. It is an analysis that shows how a certain trader react with their trades. As a trader, we should not just base our movement upon the chart or news but how does market players play the market. This is what we called sentimental analysis.

TA or Fa, these are just tool to guide us in trading. But most of the time, it value a lot when a coin is good at fundamentals or strong news and development as well as having a bullish chart.

[bitgolden]

Right now, fundamental would have helped you to realize that bitcoin could have gone down whereas TA wouldn't help you to realize that, there was too much things showing that bitcoin could be going up, even the most advanced trader was saying that $12k was a wall that we are trying to knock down and that wall can't handle to stay up forever so one day we will go up, that was the logic for a long time.

Unfortunately they were wrong, but if you worked with Fundamental instead, you could have seen that it is actually doing not that great, not as great as TA shows, there was too much pressure. All those times we tried to go over $12k and didn't? That means someone didn't want it, and buyers are not going to just keep on buying from that level to make people richer so it went down.

[wxa7115]

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.

But that is precisely the issue, you can use any technique that you want in order to try to make money from the markets but very few people have a complete trading plan that tells them what to do in exactly every single situation they can face, which means that just when they need it the most they are left to their own devices trying to improvise when the market is moving very abruptly.

So I will suggest to anyone that is thinking about trading and about using any of those techniques to develop a very concise plan about what they plan to do in every single circumstance because that is the only way to be successful over the long term in any market.

[exstasie]

Right now, fundamental would have helped you to realize that bitcoin could have gone down whereas TA wouldn't help you to realize that, there was too much things showing that bitcoin could be going up, even the most advanced trader was saying that $12k was a wall that we are trying to knock down and that wall can't handle to stay up forever so one day we will go up, that was the logic for a long time.

Unfortunately they were wrong, but if you worked with Fundamental instead, you could have seen that it is actually doing not that great, not as great as TA shows, there was too much pressure. All those times we tried to go over $12k and didn't? That means someone didn't want it, and buyers are not going to just keep on buying from that level to make people richer so it went down.

How would fundamentals have predicted anything? Fundamentals have very little to do with short term price action. That's why it's so commonly said that markets are irrational.

You raise a good point about trader sentiment. I'm really big on contrarian trading. When everyone is thinking the same thing, the opposite usually happens. Next time it seems like all the traders are planning on BTC going to the moon, consider trading against them.

What many people don't realize is that being a good trader is all about reacting to price action, not predicting it. When we were trading at $12K, predicting whether bulls would fail or not was a gamble. Stop selling below the $11,100-$11,200 breakout zone was much more of a sure thing.

[dunfida]

Right now, fundamental would have helped you to realize that bitcoin could have gone down whereas TA wouldn't help you to realize that, there was too much things showing that bitcoin could be going up, even the most advanced trader was saying that $12k was a wall that we are trying to knock down and that wall can't handle to stay up forever so one day we will go up, that was the logic for a long time.

Unfortunately they were wrong, but if you worked with Fundamental instead, you could have seen that it is actually doing not that great, not as great as TA shows, there was too much pressure. All those times we tried to go over $12k and didn't? That means someone didn't want it, and buyers are not going to just keep on buying from that level to make people richer so it went down.

How would fundamentals have predicted anything? Fundamentals have very little to do with short term price action. That's why it's so commonly said that markets are irrational.

You raise a good point about trader sentiment. I'm really big on contrarian trading. When everyone is thinking the same thing, the opposite usually happens. Next time it seems like all the traders are planning on BTC going to the moon, consider trading against them.

What many people don't realize is that being a good trader is all about reacting to price action, not predicting it. When we were trading at $12K, predicting whether bulls would fail or not was a gamble. Stop selling below the $11,100-$11,200 breakout zone was much more of a sure thing.

Im actually on that contrarian side where i do go to the opposite way when everyone is already on that optimist side where they are boosted out on the price increase.
I heavily agree on that price action matters yet not all do decide to be a hodler anyway which means fundamentals are somewhat irrelevant and doesnt really come out
from time to time. It doesnt matter which one you do use as long you do see for it to be effective on being profitable then better stick to that.
Its a matter on how you do make use all of the info that you can grasp on.

[proscratcher]

In my opinion Technical Analysis. The cryptocurrency market is driven by speculations and fundamental analysis is not yet applicable for now. We have to wait for the market to be mature first before we can consider using fundamental analysis.

[Pffrt]

You have to make the combination of both FA and TA to get the best output. Relying on only one will cause you loss eventually. In the past week, I believe a lot of TA buddies have lost huge amount of money despite they were having different signal on different crypto. So, if you don't combine both, you will have loss at some point.

[wxa7115]

You have to make the combination of both FA and TA to get the best output. Relying on only one will cause you loss eventually. In the past week, I believe a lot of TA buddies have lost huge amount of money despite they were having different signal on different crypto. So, if you don't combine both, you will have loss at some point.

While it is obviously the optimal solution at the same time it is by far the hardest, just mastering one of those aspects is incredibly difficult and most traders never master one during their lives so mastering both of them should prove to be even harder, and we must also remember that due to their different natures you could even receive contradicting signals from both of those schools of trading confusing even more the subject for those that are starting their careers.

As such it is my opinion that at the beginning new traders should focus only in one of those disciplines and only try to learn the one they are missing once they have been in the market for years and have obtained good results.

[jrrsparkles]

FA is more important than TA when it comes to crypto market because most of the time our technical analysis predictions will go wrong due to the market sudden changes especially due to manipulation so it is important to concentrate on the fundamental analysis more than the technical analysis.

[Larelel]

For forex market it would be good to know both technical and fundamental analysis. As for crypto market, I am not sure which fundamentals you should follow in order to get the best result. So, my view is better to focus on technical analysis on crypto market