What should traders focus on more right now: fundamentals or technicals?

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0xAtlasFull Member
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#1May 7, 2018, 08:36 AM
Let’s keep it straightforward and useful. I think this could really help anyone who’s feeling lost about what’s working best for traders right now. When it comes to crypto, we’ve got to consider both fundamental and technical analysis. So, which one do you think has a bigger impact on traders' and investors' emotions and choices in the current market? And please, don’t give me the usual spiel about both being important and needing to be combined. I totally get that they each have their own significance. But if you had to pick just one to use, which would it be and why?
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alex.shardLegendary
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#2May 7, 2018, 12:23 PM
For position holders, technical analysis is mostly important. For swing traders, both technical and fundamental analyses can be useful. But swing traders will do more work on technical analysis and use it the most. For day traders, both technical analysis and fundamental analysis are just very important. For scalpers, they prefer to use technical analysis.
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alexwalletSenior Member
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#3May 7, 2018, 02:19 PM
I'd choose fundamentals. But it's still impossible to choose just one. I'd start by analyzing trends to find one of the hundreds of macroeconomic/geopolitical factors that are most relevant at that time. If you're only faced with two major events, say the Fed cuts interest rates, while far away in the Middle East, Iran again closes sea trade routes. How would you determine market direction?
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the_defiFull Member
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#4May 9, 2018, 02:05 AM
It depends, bro. If you are researching a new token that you have never traded before and it has just come out, you have to understand the tokenomics and the basic finance behind it, like its fundamentals. For example, look at the total supply and compare the market cap with the FDV, which tells us how much supply is yet to be released. If more than 70% is still unreleased, then check how it will be released. If there is a vesting period for early investors who bought at a very cheap rate, then that project is vulnerable to selling pressure at each vesting date. Check if there is any burning mechanism. Take HYPE as an example. The team is buying back tokens with the revenue earned from fees, which is around $1.8 million to $2 million a day. Their earnings are very high, and they are buying back tokens and then burning them. Such projects are not hard to find, but these are just the basics. We also have to analyze the bigger picture, like whether institutions will be interested in it or not.
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LuckyAltSenior Member
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#5May 9, 2018, 03:33 AM
Both are important for a trader in order for him to understand the market and when to open a position. You cannot separate both of them and use only one when it comes to trading because they work hand in hand for a good trade. However, fundamental analysis is more powerful because just one news from Trump can wipe out majority of traders in the market.
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Gig4L0rdSenior Member
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#6May 9, 2018, 10:53 PM
It’s simple, in my trading, i rely more on technical analysis because of its short term nature, often it’s just scalping or at most day trading, where i hold positions for only a few days until they hit a stop loss or take profit level. Fundamental analysis is certainly important, especially now that the geopolitical situation is heating up, the conflict between the US and Iran is impacting many sectors. So, when trading, we have to monitor the news frequently to avoid getting caught in a bad entry.
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bear_maxiSenior Member
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#7May 10, 2018, 09:19 PM
Well, I guess I have to be different by telling  you both are important,  the need for one can just be higher than the other sometimes but there's  nothing like presently to me. B9th are still important either you like it or not unless you just want to be a scalper / gambler. Us3 FA analysis to detect upcoming and happening events, do your technical analysis at the same time and wait for the event. The TA is just to mark points where entries and exits should be done.  Not that hard is it?
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tony_ninjaSenior Member
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#8May 10, 2018, 11:41 PM
If I have to choose between fundamental analysis and technical analysis, I would choose technical analysis because I use that most of the time as I understand the market already because I've been part of it for many years and now it's okay to only using technical analysis. However, if both are used then one can have more profitable trades but even without fundamental analysis one can still make good profit overtime by relying only on technical analysis.
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laser420Full Member
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#9May 11, 2018, 03:22 AM
When you're a good technical trader the fundamentals would be less disturbing for you because the technical analysis aids in filtering all the noise in the market and makes you see which direction exactly that price is going regardless of any temporary interrupt from the market news which may create a bit of a short timeframe tension that may instruct that movement. Left for me, I indulge in both technical and fundamental analysis as trading flows better to grasp at what position to enter the market than when using only one.
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shard_minerSenior Member
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#10May 11, 2018, 09:38 AM
I would consider TA much more of a profitable influence on a traders decision in the market because it is what dictates a traders behavior and risk management practices to apply during trading execution. While FA may show a trader what to look at, TA does more to say the right time to enter the market and open a position, where to take profit and how to safe guard your portfolio.
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darklordSenior Member
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#11May 11, 2018, 02:37 PM
That's not how the market moves, everything has a pattern, including this technical. If you've ever seen my analysis here, you'll probably know that I've never heard the noise of Trump's words or anyone else's. Fundamental Analysis is just like the wheels of a car that can push the price, either when it goes up or down. And that usually happens when the pattern in the technical has already formed, I always consider it fundamental less important than the technical. If I had to choose between the two, it was clear that technical analysis was my priority.
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coin_sigmaLegendary
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#12May 11, 2018, 05:18 PM
As traders, we should focus on technical analysis rather than fundamentals. I know there are other traders who focus on fundamentals, but to me, most of my analysis is in technicals 85% and 15% on fundamentals like the news. Fundamentals, in my opinion, are important for investors with long-term plans. As traders, we are focused on technicals because what we do is analyze the market and look for opportunities in the price direction of current assets. We do acts only when we see some opportunities based on the pattern or price action.
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mr_satoshiSenior Member
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#13May 11, 2018, 09:20 PM
I personally still focus on technical analysis more simply because we do not have fundamentals every day, and since I know I do not have fundamentals every day and I practice proper risk management, on days where I miss fundamentals, an event, or news about something happening in crypto because I'm always sure to set stop losses and manage my losses, I will be able to accept the loss I take on those days, whereas on other days where there are no major fundamentals, technical analysis still rules in the market if you are able to master your strategy and emotional control properly.
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paulyieldSenior Member
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#14May 11, 2018, 11:34 PM
Technical analysis better suited if you are doing day trading, market move based on TA on the hourly chart, only make sense to use the same method used by other people. I would use fundamental if I want to buy and hold for 3-6 months or even longer. When you are holding that long, fundamental become more important, combine it with TA and you're golden.
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vault_alphaHero Member
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#15May 12, 2018, 03:36 AM
Both are important, but judging by my vast trading experience, the technical analysis is incomparably better for traders than the fundamental analysis. The fundamental analysis primarily affects the assets you are trading, but mind you, it affects them unevenly. This is why you might read rightly that news broke and was supposed to make BItcon or the USD fall, but in reality, it could either: 1. Obey it and fall, or 2. Not obey it and rise, or 3. Obey it, but with no significant impact. Also, they don't care about what the technical analysis is saying. However, the technical analysis cares about what the news says and adjusts to it immediately. Aside from that, it detects the trend/reversal, their strengths, market volatility, swing, etc, and also know when the market is dead to caution traders. It's now your choice to read it rightly and also apply the right management to further improve your safety and results.
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k3vin4peSenior Member
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#16May 12, 2018, 08:03 AM
I have always been the kind of trader that only reply mostly on technical analysis and indeed I made profit and also experienced losses but with the news on Sunday about Trump and Iran, I lost my trade just in two minutes because the news caused the market to reverse against me with a long candle meanwhile it was almost at my take profit level. So, I think if someone is good in both technical and fundamental analysis, they can do well in trading. Sometimes I'm just too lazy to read and follow up with the news, meanwhile it's important.
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0xAtlasFull Member
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#17May 12, 2018, 01:13 PM
For a scalper, technical analysis is what is needed since it requires the shortest timing to take profit. But I realise that one big global news can rubbish a many days of technical analysis of the market charts and patterns for day traders. And siting the Iran and America -Israel conflict in the middle east that have continued to affect the movement of Bitcoin price and all other digital assets and stocks, It can get ugly if a trader has to set a trade and by his analysis holding a position waiting for a day or two as appropriate timing to exit, then a fundamental bad news strucks.
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leo.wolfHero Member
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#18May 12, 2018, 05:20 PM
Technical analysis is more important to short term traders which you can have day traders and scalpers. Technical analysis tells the history pattern of that coin and through that you can actually be able to be to use the indicators, candle stick and things like to get a short term analysis. But regardless of any type of trader you’re, the reason why you need to actually be cautious is because of how unpredictable the market is and fundamental factors is the reason why the market is unpredictable and it’s one of the biggest enemy to traders because it can actually change the market sentiment To avoid all this market shift, you will see scalpers either using very small capital and leverage or apply very tight stop loss
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fox_nodeFull Member
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#19May 12, 2018, 05:27 PM
Quite an interesting information you have explained and you are very correct after looking at how these traders operate in the market and the duration of time they usually spend. Since position traders will have to stay in the market for a very long time, they don't really need to focus on the news before they can choose when to buy and when to sell. They are long term traders that are not interested in short term reaction of the market due to sudden news. The swing traders and the day traders would be interested in knowing the possibility of the news changing the direction of price. They are both interested in using the technical analysis and combining it with the fundamental analysis to confirm trades. The scalpers should have no business with the fundamental aspect of the market since they don't spend more than 10 minutes in the market.
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quantumbearHero Member
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#20May 12, 2018, 07:22 PM
What about the investors? Technical analysis is very important for the investors. Do you know that the technical analysis is favoring the investors than the scalpers and day traders? All traders should use technical analysis, it is very important to traders. It is very easy to say, but they are mostly losing. Among all types of trading rules, scalpers and day traders lose most money dispute their technical knowhow.
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