What are the benefits of combining fundamental and technical analysis?

[coin-score.ai]

At least for long-term trading, it is necessary to combine the two types of analysis so that a more complete and relevant analysis can be made. What do you think, do you use both?

In our opinion, the benefits would be the following:
1. Comprehensive Vision
2. Signal Confirmation
3. Risk Mitigation
4. Capitalizing on Both Short and Long-term Opportunities
5. Flexibility in Strategies



https://coin-score.ai/articles/the-benefits-of-combining-fundamental-and-technical-analysis/

[1714681313]

1714681313

[@sriyan]

At least for long-term trading, it is necessary to combine the two types of analysis so that a more complete and relevant analysis can be made. What do you think, do you use both?

In our opinion, the benefits would be the following:
1. Comprehensive Vision
2. Signal Confirmation
3. Risk Mitigation
4. Capitalizing on Both Short and Long-term Opportunities
5. Flexibility in Strategies



https://coin-score.ai/articles/the-benefits-of-combining-fundamental-and-technical-analysis/

I am following the above two an analysis to get more confirmation. If you are using fundamental analysis, you know the actual use case of the coin/token. Also, you can get more confirmations from the market news as well. Those belong to the fundamental analysis. If you know about technical, you can check the volumes of the trading and overall direction. But I think this post should move to the trading discussions

[Adbitco]

Just whomever that has both knowledged combined often produces a meaningful results while trading as it helps in creatings good understanding for a trader to know when to enter market. Anyone who is of this knowledge also make the right choice to choose among coin to trade with relative to how important those coin are and how they can be holds in terms of investment, to crown it all this two things are what gives birth to a successful trading and whomever that can utilized the fundamental and technical analysis will also become successful in their trading journey. @sriyan suggested you can move this thread to above mention section to give more light to it.

[coin-score.ai]

Just whomever that has both knowledged combined often produces a meaningful results while trading as it helps in creatings good understanding for a trader to know when to enter market. Anyone who is of this knowledge also make the right choice to choose among coin to trade with relative to how important those coin are and how they can be holds in terms of investment, to crown it all this two things are what gives birth to a successful trading and whomever that can utilized the fundamental and technical analysis will also become successful in their trading journey. @sriyan suggested you can move this thread to above mention section to give more light to it.

How to make the topic much? Do I have to delete here to recreate in another section or can it be moved as it is now?

[Adbitco]

Just whomever that has both knowledged combined often produces a meaningful results while trading as it helps in creatings good understanding for a trader to know when to enter market. Anyone who is of this knowledge also make the right choice to choose among coin to trade with relative to how important those coin are and how they can be holds in terms of investment, to crown it all this two things are what gives birth to a successful trading and whomever that can utilized the fundamental and technical analysis will also become successful in their trading journey. @sriyan suggested you can move this thread to above mention section to give more light to it.

How to make the topic much? Do I have to delete here to recreate in another section or can it be moved as it is now?

You don't need to delete and create another one.. from your ending below you will see move topic at below the left hand side, select on move then move to trading discussion board. That is all and this one here will be automatically locked and the other place becomes active.

[livingfree]

At least for long-term trading, it is necessary to combine the two types of analysis so that a more complete and relevant analysis can be made. What do you think, do you use both?

I am not good at it but if it's going to benefit your trades when you use two of these analysis, why not right? Just use whatever works for you so that you'll win on your trades.

In our opinion, the benefits would be the following:
1. Comprehensive Vision
2. Signal Confirmation
3. Risk Mitigation
4. Capitalizing on Both Short and Long-term Opportunities
5. Flexibility in Strategies

And there will be a lot more.

The main benefit of it is you'll be able to understand and see the other points of these analysis. Whenever you're confident with those, as said on #4 then the long term opportunity will be open and you'll be flexible when you're good at both of it.

[gurunanakji777]

A comprehensive vision is essential for achieving success in cryptocurrency trading. Without it, earning a consistent profit can be extremely challenging. Additionally, risk mitigation and flexibility in trading strategies are crucial factors. Depending on market conditions, these elements play a significant role in helping a trader gain a strong foothold in cryptocurrency trading. Nonetheless, it's worth noting that day trading remains a difficult endeavor. However, by implementing these methods, one can formulate an effective strategy and potentially generate profits by holding positions for a certain period.

[jeraldskie11]

At least for long-term trading, it is necessary to combine the two types of analysis so that a more complete and relevant analysis can be made. What do you think, do you use both?

In our opinion, the benefits would be the following:
1. Comprehensive Vision
2. Signal Confirmation
3. Risk Mitigation
4. Capitalizing on Both Short and Long-term Opportunities
5. Flexibility in Strategies



https://coin-score.ai/articles/the-benefits-of-combining-fundamental-and-technical-analysis/

All I know that there are profitable traders that only uses fundamental analysis and there are traders who use only technical analysis. So if we combine these two would definitely increase the rate of winning. In trading, the more confluence the higher the probability of winning the trade. But before you use in your actual trade, backtesting is a must. And remember, without risk management will just result to liquidation. So you must have a trading plan and stick to it.

[Woodie]

5. Flexibility in Strategies

Not sure if I interpreted this correctly, but anything to do with jumping from one strategy to another just shows that one hasn't polished the strategy one is currently using and this is a sign of gambling and experiments!

Otherwise I am leaning towards the technical analysis side of things and the only time I get to use fundamental analysis is when news is coming out and I stay away from the matkets as the volatility is high during these times.

What are the benefits of combining fundamental and technical analysis?

The only benefit I can think of when combining the 2 strategies is them acting as a confluence , though technical analysis will always be a step ahead

[Rruchi man]

1. Comprehensive Vision

This is the best reason because a combination of both analysis will make decision making concerning a trade to place much easier and can increase accuracy but It can also make analysis more difficult, and things more confusing which can lead to poor trading result.

[lionheart78]

All I know that there are profitable traders that only uses fundamental analysis and there are traders who use only technical analysis. So if we combine these two would definitely increase the rate of winning. In trading, the more confluence the higher the probability of winning the trade. But before you use in your actual trade, backtesting is a must. And remember, without risk management will just result to liquidation. So you must have a trading plan and stick to it.

Indeed! Fundamental analysis is good to use to see how would the project or coins perform since it deals with the foundation of the projects, the plans and the people behind it, while Technical analysis gives us the knowledge of when to enter and exit the market since these deals more on the previous and recent trend of the projects market price and its signal for the upcoming trend through some mathematical calculation.

The combination of these two may supplement each other weaknesses and possibly synergize the pros.

[Bushdark]

At least for long-term trading, it is necessary to combine the two types of analysis so that a more complete and relevant analysis can be made. What do you think, do you use both?

In our opinion, the benefits would be the following:
1. Comprehensive Vision
2. Signal Confirmation
3. Risk Mitigation
4. Capitalizing on Both Short and Long-term Opportunities
5. Flexibility in Strategies



https://coin-score.ai/articles/the-benefits-of-combining-fundamental-and-technical-analysis/

What many investors do not understand is that combining the technical analysis and the fundamental analysis is what give us a real signal and what is happening in the market. Sometimes when we work with only the fundamentals analysis, we might make several mistakes and not understand the clarity of the market which can make us to make wrong decisions that will bring about huge loses.

We need to make sure that we are good in fundamentals and technical analysis at the same time so that we can benefit huge from the market. There are so many benefits apart from the listed ones in by op which we can tend to get from maximizing the opportunity to make sure that we are experts in the two types of analysis.

[suzanne5223]

The combination of fundamental analysis and technical analysis helps in getting a comprehensive evaluation of the market trend investments since the fundamental analysis will analyze the intrinsic value of the crypto while technical analysis studies the crypto price patterns and other market behavior.
The combination of the two analysis always makes perfect armor when trading cryptocurrency.

[dansus021]

Confirmation and pretty much only that. and also gives me confidence when I see good news on the fundamental analysis while on the technical side is the price tries to breakout the resistance zone or the price near the support zone.

and basically just like you have said. Sometimes long term holder also looking for news first and then entry at the technical side.

[GreatArkansas]

Confirmation and pretty much only that. and also gives me confidence when I see good news on the fundamental analysis while on the technical side is the price tries to breakout the resistance zone or the price near the support zone.

and basically just like you have said. Sometimes long term holder also looking for news first and then entry at the technical side.

Exactly, it will help you to validate your analyze. Like for example, in fundamental analysis, it's good, it's somehow good news or good to enter.
But once you do the technical analysis side, it is not fine, like it is really showing bearish or not good to enter, like not yet a good time to enter. That's what I can see about combining fundamental and technical analysis.

[Beerwizzard]

5. Flexibility in Strategies

Not sure if I interpreted this correctly, but anything to do with jumping from one strategy to another just shows that one hasn't polished the strategy one is currently using and this is a sign of gambling and experiments!

Otherwise I am leaning towards the technical analysis side of things and the only time I get to use fundamental analysis is when news is coming out and I stay away from the matkets as the volatility is high during these times.

What are the benefits of combining fundamental and technical analysis?

The only benefit I can think of when combining the 2 strategies is them acting as a confluence , though technical analysis will always be a step ahead

Both fundamental and tech analysis are not strategies by themselves. It is just different ways of getting and interpreting market data while the trading strategy may combine not only both of them but also include sentiment analysis or any other things you want to use (even tarot cards if you want).

IMO, there is no other way rather than combining multiple types of analysis if you want to trade successfully on a distance. None of the professional traders is sticking to a single type of analysis.

[Sim_card]

The fundamental analysis and technical analysis is important for traders because it helps you to know when to buy and when to sell, the type of coin to buy. It gives room to make profit, compare to when you are using only one. As a trader, it is important to always be at alert and know the right time to buy and sell due to the price of bitcoin at that moment. This is why both strategy are useful for traders for them to be successful. The risk management is also part of what trader should know so that they can manage their loss.

[dansus021]

Exactly, it will help you to validate your analyze. Like for example, in fundamental analysis, it's good, it's somehow good news or good to enter.
But once you do the technical analysis side, it is not fine, like it is really showing bearish or not good to enter, like not yet a good time to enter. That's what I can see about combining fundamental and technical analysis.

Right, sometimes how good people at technical analysis is always lost when the fundamental news comes out.
An example is when the Fed says "I'm gonna raise the interest rate by 200bps" all the market would down including the stock market, crypto market, and forex market. So usually doing fundamentals first is good to go.

[BlackBoss_]

Confirmation and pretty much only that. and also gives me confidence when I see good news on the fundamental analysis while on the technical side is the price tries to breakout the resistance zone or the price near the support zone.

and basically just like you have said. Sometimes long term holder also looking for news first and then entry at the technical side.

Long term holders should focus on fundamentals and they usually focus on it. Only newbie holders focus on news and technical analysis but with time they can learn lessons from the market, news, fud and realize importance of fundamentals that are more important than technical.

Exactly, it will help you to validate your analyze. Like for example, in fundamental analysis, it's good, it's somehow good news or good to enter.
But once you do the technical analysis side, it is not fine, like it is really showing bearish or not good to enter, like not yet a good time to enter. That's what I can see about combining fundamental and technical analysis.

Fundamentals if good are always good but technical parameters can be good now, next few months but will be bad next year whilst the fundamentals will remain the same and even become better. In the market fundamental and technical can be different and they don't come with same direction most of time.

When people lose money in market by their failures with technical analysis, they blame it on fundamentals which are useless and helpless for them. In reality fundamentals are good, unchanged but can not help them if they have wrong technical analysis or gambling with leverages.

Right, sometimes how good people at technical analysis is always lost when the fundamental news comes out.

News and fud don't change fundamentals but can break a technical pattern, trend and kill many gamblers in this market. Who are disciplined with fundamentals and DCA can succeed in this market while gamblers will fail and lose money.

[wxa7115]

The fundamental analysis and technical analysis is important for traders because it helps you to know when to buy and when to sell, the type of coin to buy. It gives room to make profit, compare to when you are using only one. As a trader, it is important to always be at alert and know the right time to buy and sell due to the price of bitcoin at that moment. This is why both strategy are useful for traders for them to be successful. The risk management is also part of what trader should know so that they can manage their loss.

Fundamental analysis is useful but due to the characteristics of this market in particular using technical analysis seems like the best choice out of the two by far.

And this is because the number of good coins we have on this market is limited while the number of shitcoins on the market seem to be almost limitless, with this in mind fundamental analysis is not really going to help you much compared to the perks that technical analysis can offer.