Know how to use Fundamental and Technical Analysis

[bayu7adi]

I tend to agree that fundamental analysis is more suited for long term analysis, rather than solely relying on what the media publishes as news. Instruments with strong fundamentals are likely to yield good results and, of course, offer us significant profit potential. In fundamental analysis, we focus on the related company or technology, as in the case of Bitcoin.

For example, Bitcoin's fundamental analysis includes its extremely high investor confidence and its ability to attract new institutional investors due to its relatively young age... also the limited supply is a long term consideration because it will impact the deflationary value in the future.

To me, fundamental analysis serves as a long term reference for investments, while technical analysis tends to focus on the short term by analyzing candlestick patterns and news events that affect price movements over a brief period.

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[Best-mary]

I tend to agree that fundamental analysis is more suited for long-term analysis, rather than solely relying on what the media publishes as news. Instruments with strong fundamentals are likely to yield good results and, of course, offer us significant profit potential. In fundamental analysis, we focus on the related company or technology, as in the case of Bitcoin.

For example, Bitcoin's fundamental analysis includes its extremely high investor confidence and its ability to attract new institutional investors due to its relatively young age... also the limited supply is a long-term consideration because it will impact the deflationary value in the future.

To me, fundamental analysis serves as a long-term reference for investments, while technical analysis tends to focus on the short term by analyzing candlestick patterns and news events that affect price movements over a brief period.

Damn!! You're so good. To be frank, all I do is to look into what the news would impact in the market and not focus on little details like this. Most often, as I said earlier, what I use is the insight from exchanges because they tend to summarise everything happening in the crypto world. I guess next time I'd be paying attention to little details like this

[Best-mary]

Fundamental tells you what to do, while Technical tells you when to do it

This is very detailed for a lay man to understand the difference between fundamental and technical analysis. They both have their unique benefits and they can complement each other to help a trader make more informed and successful trades. Fundamental analysis can help you to identify potential opportunities and technical analysis can help you determine the best entry and exit points for a trade. Using both fundamental and technical analysis can help a trader to stay disciplined in trading. You know sometimes it's easy to get caught up in the emotions of the moment and either buy or sell a coin based on our feelings but using both fundamental and technical analysis can give us a clear and objective way to make decisions. The truth is that we have to keep in mind when using both fundamental and technical analysis that they're not perfect tools and there is always the potential for unexpected events to happen.

This part you said made me remember the time I bought BGB, Rune and SOL. There was a lot of positivity around this token before this altcoin surge period. Seeing that people were so positive about these coins, I just bought a few units and now I appreciate the fundamentals

What I didn't was to trade. You know, as you said. Unexpected things could happen. I wanted to be sure of their movement before taking the next action

[lombok]

Both of them had different roles, traders would use TA while Holder would use FA. This is why we just focus on understanding the one the most needed for us, though we can still learn both of them as well. But the question arises if we could execute it well because it makes no sense if we fail to understand the situation of the market. We know TA and FA, plus executed well, and choose the right project(s) --success isn't far from happening. That is obviously not an easy job for us but certainly earn good rewards in the end.

That's right, technical analysis is usually used by traders to determine up and down market movements, this is very complicated and must be done carefully, for traders this is very important when dealing with the market. There are so many tools that are also used. And Fundamentals are usually used for long term investments, this refers to long term movements, this analysis is very vital of course, because of the investment designation, if an investor misses this, perhaps all investment funds will be lost instantly if the crypto they choose has a fault.

[Huppercase]

So, my friend who just started trading asked me which is better Fundamental and Technical Analysis. So, this is the reply I gave which I also decided to share with others who don't know how this works hand in hand.

Fundamental Analysis and Technical Analysis are not inherently better than each other. Fundamental Analysis allows you to assess the potential direction of a coin's price, whether it's bearish or bullish. For instance, you can observe how Bitcoin's price has responded to positive news, which you can find on exchanges news insights, as well as popular news apps. Technical Analysis comes into play to further analyze price movements. Is just as easy as that.

Fundamental tells you what to do, while Technical tells you when to do it

If you ask me, I will say fundamental analysis is inherently better than technical analysis but if you understand the both, it gives you lead on how to survive the market. If not for the fundamental news that happened all the time, hodlers of bitcoin will wait forever to harvest their profit from bitcoin. Fundamental gives you lead, more like qualifying your technical.

If you want to set up a trade now and your basic indicators like volume, RSI, Bollinger band and EMA tells you that the market will be bullish and then you went ahead and after like 2 hours the market start to traject upward and all of sudden you read from Coindesk or Cointelegraph that Binance was hacked, there is no way you will live that trade open, you will close it fastly without waiting for stop-loss because it will he trigger in the end, this is what fundamental analysis helps you do.

As you have said, you need to know how to use it and when to use it. The market is experiencing upward moves since last week and that was because of ETF anticipation approvals. Some analyst believe that this is the window period that SEC usually approves ETFs and since we have about 8 bitcoin SPOT ETF pending applications, they might approved some and if they approve that of Blackrock, then the market will react to it, the next move or Bitcoin is going to be $40k for sure.

[hd49728]

If you ask me, I will say fundamental analysis is inherently better than technical analysis but if you understand the both, it gives you lead on how to survive the market. If not for the fundamental news that happened all the time, hodlers of bitcoin will wait forever to harvest their profit from bitcoin. Fundamental gives you lead, more like qualifying your technical.

Fundamental analysis is more important than technical analysis because without good fundamentals, a technical analysis can be come useless with a project that can be rug pulled any time by founders, developers.

A project with good fundamentals will not have rug pull that is important to avoid 100% loss of your initial capital. With good fundamentals, if your technical analysis is wrong and your trading position is bad, you can hold your good cryptocurrency like Bitcoin and wait for recovery. I only believe in Bitcoin and Ethereum for long term holding. Other cryptocurrencies are risky and holding them is not wisely. If a trader have a bad trading position with altcoins, it's better to cut loss and finish the trade.

[livingfree]

Fundamental tells you what to do, while Technical tells you when to do it

It actually varies on how both works for you. There are times that technical analysis and so does the fundamentals.

But many are more familiar with technicals and those that are not good with technical analysis just choose to go with what's with the fundamentals.

Honestly, both are effective depending on how you perceive and use the information that you can gather with these analyses.

[Captain Corporate]

It is definitely a good "understanding" of what they are, but that is not always the case. Fundamentals basically tells you if what you are investing is a decent thing that you should invest or not, and TA tells you when you should buy or sell. So the logic of what to buy and when to buy are not too far apart but also not "exactly" true. There are plenty of terrible tokens out there, thousands of them, who have terrible FA results and yet for some reason people do still invest into them, doesn't make sense to me to be fair but they still do it for some reason. I think its quite important to notice that we are talking about two very different thing, FA and TA, but for the same purpose in the end at the very least.

[tbct_mt2]

It is definitely a good "understanding" of what they are, but that is not always the case. Fundamentals basically tells you if what you are investing is a decent thing that you should invest or not, and TA tells you when you should buy or sell.

Applying Technical Analysis after using Fundamental Analysis to find good entries is headache. You never can find correct bottom or top so if you apply Technical analysis for your investment, not trading, because you already used Fundamental Analysis as your first step, is not needed.

An investor can simply use Dollar Cost Averaging and reduce stress, avoid headache by timing the market and finding bottom or top.

Costavg.com (Cryptocurrency Dollar Cost Averaging) for Bitcoin, Ethereum, Litecoin, Monero, Cardano.

[karabiber]

Fundamental analysis determines whether an asset is attractive or not, while technical analysis shows you the dynamics within the asset. With the right indicators, you can profit in the highly volatile cryptocurrency market. Technical analysis analyzes past price movements and volumes, analyzes patterns, indicators and oscillators to identify trading points and predict the direction of price movements. Fundamental analysis helps us find the true value of an asset and predict the factors that may affect it.

The purpose of fundamental analysis is to try to determine whether the value you receive in your investment deserves the price you pay. Therefore, both methods of analysis are used effectively in the stock market. Since fundamental analysis takes more time than technical analysis, technical analysis is generally preferred.
A little advice: stick with whichever method of analysis and strategy you are successful with. Remember, you may need both analyses for your trading decision.

[Mahanton]

So, my friend who just started trading asked me which is better Fundamental and Technical Analysis. So, this is the reply I gave which I also decided to share with others who don't know how this works hand in hand.

Fundamental Analysis and Technical Analysis are not inherently better than each other. Fundamental Analysis allows you to assess the potential direction of a coin's price, whether it's bearish or bullish. For instance, you can observe how Bitcoin's price has responded to positive news, which you can find on exchanges news insights, as well as popular news apps. Technical Analysis comes into play to further analyze price movements. Is just as easy as that.

Fundamental tells you what to do, while Technical tells you when to do it

If you ask me, I will say fundamental analysis is inherently better than technical analysis but if you understand the both, it gives you lead on how to survive the market. If not for the fundamental news that happened all the time, hodlers of bitcoin will wait forever to harvest their profit from bitcoin. Fundamental gives you lead, more like qualifying your technical.

If you want to set up a trade now and your basic indicators like volume, RSI, Bollinger band and EMA tells you that the market will be bullish and then you went ahead and after like 2 hours the market start to traject upward and all of sudden you read from Coindesk or Cointelegraph that Binance was hacked, there is no way you will live that trade open, you will close it fastly without waiting for stop-loss because it will he trigger in the end, this is what fundamental analysis helps you do.

As you have said, you need to know how to use it and when to use it. The market is experiencing upward moves since last week and that was because of ETF anticipation approvals. Some analyst believe that this is the window period that SEC usually approves ETFs and since we have about 8 bitcoin SPOT ETF pending applications, they might approved some and if they approve that of Blackrock, then the market will react to it, the next move or Bitcoin is going to be $40k for sure.

Put up into your mind that not all the time this market would really be having that kind of news and sentiments on which we could really be able to depend or rely on what our market decisions would be.
If you arent really that sure on how to apply fundamentals then it would really be just that right or normal on having those kind of searches whether that news is something positive or negative
but honestly by the looks and information alone would really be already be able to tell whether on which one it would be. Fundamentals nowadays are already that significant compared into those older years
on which news doesnt really make out some effect into this market which it is unlike now that whenever we do see news then the market do really make out reactions.

The wisest thing to be done is that you should really know on how to make use both things in between FA+TA on which you would really be finding it to be that relevant in speaking about
trading on which these things could really be helpful and you would really be finding it relevant for you to be able to apply it in regarding into your trades.
Although it wont really be that precise but having this kind of approach on making use of these tools and indicators and sentiments would really be beneficial.

[TheUltraElite]

Dont base your trading just on FA or TA. The TA is only a 50-50 game because it is a pseudo-science and not based on concrete evidence. It can only make a prediction as to where the market might be moving to and you have to decide how to want to play it. Remember not to put your full decision making on TA. It is more applicable when it comes to day trading and less to long term trading.

Because in long term you can balance out a lot of things, you buy at low discounted prices and sell at inflated prices without looking at TA for sudden or quick changes.

TA or FA will not make you a market expert, in fact nobody can be one, but try to make money off the market to our maximum capability.

[letteredhub]

I tend to agree that fundamental analysis is more suited for long term analysis, rather than solely relying on what the media publishes as news. Instruments with strong fundamentals are likely to yield good results and, of course, offer us significant profit potential. In fundamental analysis, we focus on the related company or technology, as in the case of Bitcoin.

With a satisfactory knowledge of technical analysis a trader has solve about 80% of trading difficulties. T.A is rounded on data analysis, indicators and past chart patterns that when a trader is able to comprehend their use in opening trade fundamental analysis then be used as a complement to strengthen and give a base to your trading decision following the news that is ground in the market. Technical analysis is being undermined by some traders due to how series of news after news triggering and affecting price action more often than not, but a seasoned trader knows that to be able to take advantage of fundamentals of the market you need to possess a firm technical knowledge.

[hd49728]

Dont base your trading just on FA or TA. The TA is only a 50-50 game because it is a pseudo-science and not based on concrete evidence. It can only make a prediction as to where the market might be moving to and you have to decide how to want to play it. Remember not to put your full decision making on TA. It is more applicable when it comes to day trading and less to long term trading.

Because in long term you can balance out a lot of things, you buy at low discounted prices and sell at inflated prices without looking at TA for sudden or quick changes.

TA or FA will not make you a market expert, in fact nobody can be one, but try to make money off the market to our maximum capability.

I completely agree that TA or FA all can fail and you can not win 100% positions you open with TA or FA.

Don't invest what you can not afford to lose.
Don't trade what you can not afford to lose.

Two sentences look pessimistic but it is about risk management as well as how you have ace under your sleeves when things go wrong and you still have second plan to live through it without suicide.

[redsun114]

Among all, the fundamental analysis is the most important one because a trader can not do well when he or she has not gotten the fundamental knowledge of the trading tools. And the technical analysis is when you have mastered the fundamental then you use it to finalize the trading process. It is the time you can breakdown the movement of the market to know when to start and when to stop. Though all are necessary in the trading, a trader can't do without the both both the fundamental is the first of it all.

I think fundamental analysis is different from the fundamental knowledge that you can get when learning the trading tools like what you are telling there. AFAIK, fundamental analysis deals with the economic and financial factors, but in spite of it, I think this was not being prioritized by the traders but it was the technical analysis is the ones that they use the most. Can't you see the chartings, or the graphs scattered around or anywhere?

Those are the parts of a technical analysis. Learning the trading tools before we start trading is still important. If I'm going to trade, I will definitely use both types of analysis because I always believe that fundamental analysis is also important more than the technical one's.

[kingvirtus09]

So, my friend who just started trading asked me which is better Fundamental and Technical Analysis. So, this is the reply I gave which I also decided to share with others who don't know how this works hand in hand.

Fundamental Analysis and Technical Analysis are not inherently better than each other. Fundamental Analysis allows you to assess the potential direction of a coin's price, whether it's bearish or bullish. For instance, you can observe how Bitcoin's price has responded to positive news, which you can find on exchanges news insights, as well as popular news apps. Technical Analysis comes into play to further analyze price movements. Is just as easy as that.


Fundamental tells you what to do, while Technical tells you when to do it

They are equally helpful to all traders, whether in Bitcoin, crypto, forex, or stock. It just depends on you which one you will be more comfortable using out of the two that you think will make it easier for you to make a profit.

As long as the only important thing is to make a profit, since that is its main purpose. But they are also not guaranteed to give 100% profit in trading; they are just a tool to determine the direction the price is going.

[dunfida]

Dont base your trading just on FA or TA. The TA is only a 50-50 game because it is a pseudo-science and not based on concrete evidence. It can only make a prediction as to where the market might be moving to and you have to decide how to want to play it. Remember not to put your full decision making on TA. It is more applicable when it comes to day trading and less to long term trading.

Because in long term you can balance out a lot of things, you buy at low discounted prices and sell at inflated prices without looking at TA for sudden or quick changes.

TA or FA will not make you a market expert, in fact nobody can be one, but try to make money off the market to our maximum capability.

I completely agree that TA or FA all can fail and you can not win 100% positions you open with TA or FA.

Don't invest what you can not afford to lose.
Don't trade what you can not afford to lose.

Two sentences look pessimistic but it is about risk management as well as how you have ace under your sleeves when things go wrong and you still have second plan to live through it without suicide.

And this is what you do need when you do really hover yourself on dealing  with trading on which these kind of analysis or approach wouldnt really be giving out that precision in terms of success rate or being profitable.
Yes, it doesnt give out assurance but its the best things that you should really be needing for you to now or something that really needs to be learnt up or else you are just basically doing yourself some gambling.
This is a must skill that should really be needing to be done or really needs to learn so that you would really be able to make yourself that be sustain on how to deal up with this unpredictable space.
Just put up into your mind that risks management would really be that so crucial and emotion handling.

You would really be able to find on yourself on how to deal up with this market which you would be making out adjustments accordingly basing up on what you have that experienced.
Its impossible that you wont really be able to assess up things basing up into those actual experience previously which it would really be giving out that kind of idea.

[Mpamaegbu]

In all honesty, I think there's a third that should be added to Fundamental and Technical Analyses. It should be Manipulative Analysis. While I advise that Fundamental and Technicals (I love TA) should be a must-to-know for everyone trading and wanting to be successful, traders should also know that's not all there's to trading the market. Sometimes the technicals and fundamentals can align but trades won't go that way and that's because there's manipulation somewhere. I know that FA rules in cryptos more than TA where the market reacts instantly to news even when TA is saying the opposite. This can't be said to be so in Forex Trading where news can be positive and TA is positive but market will go the opposite direction just to clear Stop Losses out. That's manipulation and that has to be studied and mastered too.

[wxa7115]

So, my friend who just started trading asked me which is better Fundamental and Technical Analysis. So, this is the reply I gave which I also decided to share with others who don't know how this works hand in hand.

Fundamental Analysis and Technical Analysis are not inherently better than each other. Fundamental Analysis allows you to assess the potential direction of a coin's price, whether it's bearish or bullish. For instance, you can observe how Bitcoin's price has responded to positive news, which you can find on exchanges news insights, as well as popular news apps. Technical Analysis comes into play to further analyze price movements. Is just as easy as that.


Fundamental tells you what to do, while Technical tells you when to do it

The explanation that you gave your friend was good enough, fundamental analysis is without a doubt a useful tool, but its main weakness is that it does not really tell you when the assets you have picked will go up in value, fortunately TA can cover that weakness and tell you with a decent accuracy when to sell and buy the assets you like.

So tell your friend they cannot really disregard either one and if anything they should try to master both, not an easy task of course, but if they are serious about becoming a trader then this is something they will have to do.

[Mauser]

So, my friend who just started trading asked me which is better Fundamental and Technical Analysis. So, this is the reply I gave which I also decided to share with others who don't know how this works hand in hand.

Fundamental Analysis and Technical Analysis are not inherently better than each other. Fundamental Analysis allows you to assess the potential direction of a coin's price, whether it's bearish or bullish. For instance, you can observe how Bitcoin's price has responded to positive news, which you can find on exchanges news insights, as well as popular news apps. Technical Analysis comes into play to further analyze price movements. Is just as easy as that.


Fundamental tells you what to do, while Technical tells you when to do it

Technical analysis is a great tool that every trader should be using, because there is so much information, we can extract from the past trading data and it's publicly available for free. To me it's pretty obvious that there are patterns in trading, we can see that there are bull and bear cycles that tend to control the overall market sentiment. Identifying these cycles is very helpful and I try to use strategies that focus on selling at the start of a bear market and buy at the start of a bull market. These so-called Mean Reversion strategies focus on the fact that investors tend to overbuy when there is a good sentiment and oversell when the mood is turning. The strategy works very well together with Moving Averages, because here you get a broader indication of the trend and can identify if the current price is above or below the trend. The number of indicators we can choose from with Technical Analysis is endless and it doesn’t make sense to try and include as many different indicators as possible. Every trader needs to identify for himself which works best for his strategy and focus on the most important ones.