Fundamental Analysis or Technical Analysis - which is more important?

wxa7115

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Quote from: jrrsparkles on September 11, 2020, 09:54:21 AM

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.

I disagree, if your TA is failing constantly that is not a sign that FA is the way to go what you need to do is to improve your TA.

FA is not really that effective in this market when 95% of the projects in this market are scams or are lead by developers that are only thinking about making money for themselves and for the most part the coins in which FA could be effective like bitcoin and ethereum there is no need to make any kind of analysis because anyone that has been in this market for some time already know that those coins are the best in the market.

nasipadang

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In terms of market movement, I think it is more inclined towards fundamental analysis, the more I come here I think it is easier for users to catch and be influenced by events, news and several other things to make market movements. But it doesn't hurt to have both, because TA is very influential for the mindset of users facing the volatile market of cryptocurrency.

Kasabus

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Quote from: AniviaBtc on September 14, 2020, 05:55:31 AM

Both are important and have a good use in the market, but I prioritized using Technical Analysis because I see it much profitable for me.

This helped me a lot about the timing and patience, this also made me understand that there are a lot of possibilities that might happen in a short period of time.

It can improve your decision making to prevent bad timings, it will help you to have much clearer and certain perception towards the movement in the market. Most of the common mistakes of the newbies are decision making, that's why they aren't really making profits and instead losing their assets.

For me, both analysis can be very much helpful in achieving our goals in the crypto market. The more knowledge you will have, the higher chances of creating good profits in the market. But i also believe that there is more than these two. Discipline is what we also need the most particularly in trading. Technical and fundamental analysis won't end up having good results if we traders do not have discipline and don't have patience in whatever uncontrolled situations that may come in the market.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: luckyflop on September 14, 2020, 12:17:43 AM

For bitcoin particularly I use TA sometimes, because the coin is old enough and has enough volume to do that but for ANYthing else, I would rather use FA , because most of them are new and in cryptocurrency,

I dont think we should divide the altcoins like that. Both FA and TA are important but what I have felt to be most important is that if you are going for a long term hold and sell your entry and exit points are, thus FA is what is needed. If you are day trading you need a lot more of TA and it is risky.

Quote

some times a coin moves 100% up or 100% down with which TA techniques you wanna explain that?!

There are inorganic pumps done by groups of cryptocurrency shills in a coordinated manner. You cannot explain or predict when this is going to happen unless you are one of them. The point is that doing TA on such a coin you will make a wrong prediction.

Rather if you hold such a coin already, dump it when this happens.

AniviaBtc

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Both are important and have a good use in the market, but I prioritized using Technical Analysis because I see it much profitable for me.

This helped me a lot about the timing and patience, this also made me understand that there are a lot of possibilities that might happen in a short period of time.

It can improve your decision making to prevent bad timings, it will help you to have much clearer and certain perception towards the movement in the market. Most of the common mistakes of the newbies are decision making, that's why they aren't really making profits and instead losing their assets.

Salauddin1994

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In the case of trading it is not possible to do anything without basic knowledge just as it is not possible to do anything without technical analysis it will be very difficult to survive in the market technical analysis is the most effective. Is investing heavily in technical equipment starting with the index and ending with the drawing lines of the chart which helps us determine the trend. The advantage of technical analysis is a very descriptive presentation of the market that facilitates an understanding of the current market situation.

luckyflop

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For bitcoin particularly I use TA sometimes, because the coin is old enough and has enough volume to do that but for ANYthing else, I would rather use FA , because most of them are new and in cryptocurrency, some times a coin moves 100% up or 100% down with which TA techniques you wanna explain that?!

MCobian

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If you have been trading crypto for a long time, you will definitely agree that fundamentals and technical analysis are very important
to be able to predict prices in the market. But in my opinion technical analysis is much more important than fundamental analysis, because
based on my experience trading analysis technical is more accurate in predicting prices. Although there is no guarantee that 100% predictions
using technical analysis are correct. So still be careful when trading crypto, therefore it is very important to use the stop-loss feature,
if it is the result of technical analysis not accurate.

goldade

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For one to make maximum profits in trading, it is absolutely necessary to depend on both Fundamental analysis and Technical Analysis. These two are extremely important.
However, if you're concerned as to which is more important as to make the most of the market, then I think Fundamental analysis is more important.
One can not rely too much on past events to predict the move of the market due to the extremely volatile nature of the market. However, news have always affected the move of the market and making predictions based on this can give one profits

Larelel

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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

jrrsparkles

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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.

wxa7115

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Quote from: Pffrt on September 06, 2020, 03:06:10 AM

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.

Pffrt

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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.

proscratcher

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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.

dunfida

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Quote from: exstasie on September 05, 2020, 02:05:38 PM

Quote from: bitgolden on September 05, 2020, 11:05:10 AM

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. Wink

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.

exstasie

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Quote from: bitgolden on September 05, 2020, 11:05:10 AM

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. Wink

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.

wxa7115

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Bitcoin is GOD

Quote from: crwth on September 01, 2020, 04:44:55 PM

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.

bitgolden

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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.

Nellayar

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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.

exstasie

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Quote from: StephenJH on September 03, 2020, 06:41:21 PM

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.

Topic: Fundamental Analysis or Technical Analysis - which is more important? (Read 372 times)