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Topic: Know how to use Fundamental and Technical Analysis (Read 465 times)

hero member
Activity: 2786
Merit: 646
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
 In short, fundamental analysis gives you insights and ideas on what to buy or invest depending on your choice of investment. Without fundamentals, you will never know your first and last step when doing an investment.

However, technical analysis teaches you when is the best entry and exit in the market. You could have good fundamental analysis yet you fail in executing it while timing the market, your investment will obviously never work still. So have these both fundamentals and technicalities work in unison. Otherwise, you will only waste your time and money and fail on your investment.
I really think that people should not skip fundamental analysis, if they did study it then we will not have nowhere near as many people interested in investing in one of the hundred of meme coins released each year or being interested in a useless NFT that will never reevaluate itself after they buy it.

However since fundamental analysis is not as popular as TA and it does not produce interesting charts to watch, newbies decide to ignore it, even if it is definitely on their best interest to learn more about fundamental analysis.
Sure its not, they would see its relevance whenever their technical analysis had been fucked up by news. We do know that this market is really that highly reactive when it comes to news and fundamentals
and this is why it would really be always that best when it comes to trading then you should really know to make use in both technical and fundamentals on which it is really that the best approach
for you to have a good chance on sustaining into this market. Take note that in every news then it would neither be giving out some effect or not.

We do know that not all the time this market could have some news and this is the time that you would make use of technicals or something talks about interchangeable or something
that very a common approach to do so. We cant really be able to survive this market if we cant really be able to handle ourselves on different conditions
which it might be able to make. This is why it would be relevant that we should be knowing on how to make use of both.
sr. member
Activity: 336
Merit: 292
You said it yourself that the market is unpredictable which technically means despite the TA and FA prediction crypto trading is still just like gambling.
In fact, we can judge this by the stats of crypto traders who quit and those who were successful.
To be honest, it turns out that the best way to deal with this market is long-term investment.
The cryptocurrency market is certainly unpredictable, but it is by no means meant to be called gambling.
I don't how you get your impression but I am not talking about crypto investment and what I am talking about is trading.
If you Google the word "gambling" this is what you will get "gambling, the betting or staking of something of value, with consciousness of risk and hope of gain, on the outcome"
Technically, if we say crypto trading is gambling is not something wrong because the end result is not guaranteed even with the use of FA and TA.


I don't have much experience in gambling, but have little experience in trading. bets are not made here, but purchases are made here. Buying at a low price and selling at a high price is trading. Where does the betting come from? Of course, betting on something is called gambling and there is no middle ground, and the result is very quick. I will not favor it either with trading, there are many options in trading, you can only combine futures trading with gambling.

If I trade in any coin in spot trading and that coin goes down contrary to my expectation, Then I hold it instead of selling it. When it comes back to my desired price again, I sell it and save myself from the loss. Is there such an option in gambling ?
copper member
Activity: 1988
Merit: 905
Part of AOBT - English Translator to Indonesia
Do fundamental first because no matter if you are good at the technical sites you gonna lose from the news of the fundamental sides. so the point is fundamental first example is today news Bittrex shutdown and CZ of Binance is pled guilty and those news affect the bitcoin price also the techinal said that the market is overbought so short might be the best option for now

hero member
Activity: 2702
Merit: 704
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
 In short, fundamental analysis gives you insights and ideas on what to buy or invest depending on your choice of investment. Without fundamentals, you will never know your first and last step when doing an investment.

However, technical analysis teaches you when is the best entry and exit in the market. You could have good fundamental analysis yet you fail in executing it while timing the market, your investment will obviously never work still. So have these both fundamentals and technicalities work in unison. Otherwise, you will only waste your time and money and fail on your investment.
I really think that people should not skip fundamental analysis, if they did study it then we will not have nowhere near as many people interested in investing in one of the hundred of meme coins released each year or being interested in a useless NFT that will never reevaluate itself after they buy it.

However since fundamental analysis is not as popular as TA and it does not produce interesting charts to watch, newbies decide to ignore it, even if it is definitely on their best interest to learn more about fundamental analysis.
legendary
Activity: 3108
Merit: 1290
Leading Crypto Sports Betting & Casino Platform
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
 In short, fundamental analysis gives you insights and ideas on what to buy or invest depending on your choice of investment. Without fundamentals, you will never know your first and last step when doing an investment.

However, technical analysis teaches you when is the best entry and exit in the market. You could have good fundamental analysis yet you fail in executing it while timing the market, your investment will obviously never work still. So have these both fundamentals and technicalities work in unison. Otherwise, you will only waste your time and money and fail on your investment.
sr. member
Activity: 1400
Merit: 340
These consept you have spelt out OP, would require someone to have made up their mind to be a full-time trader inorder to settle quite frankly to apply such as fundamental and technical analysis to trading. These days we just use our intuition after having learnt the basics and have paid attention to some signals and market trends news.
Unless one also has the tools needed to trade effectively I think the application of fundamental and technical analysis is for big time investors and brokers/brokage firms who really on the data to lure in investors.
full member
Activity: 1092
Merit: 105
Sugars.zone | DatingFi - Earn for Posting
Doubt the effectiveness of fundamental and technical analysis. Fundamental seems like predicting the future based on past events, and technical appears to be fortune-telling through charts. Often, the outcomes seem arbitrary.These are all assumptions, in reality no one knows how it will be on the market
full member
Activity: 364
Merit: 220
Eloncoin.org - Mars, here we come!
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

I believe that a trader will get a better analysis if the two are applied, because one tells you why you should take a decision and the other directs you on how applicable and favorable that decision can be. So their combination can at least guarantee a profitable trade.

I still hold bitcoin for long term investment, but if I'm to start trading, among the two analysis, I'll apply the fundamentals first, because it'll give me a basic knowledge of how the market is trending, then I'll apply the technical aspect to see how the price movement is on the chart. Then I'll compere with information gathered on my fundamental findings.

I wouldn't know which is better, but I believe that technical analysis depends on fundamental analysis for chart movements, because fundamental information will in one way or another determine the pointer of charts.
legendary
Activity: 2464
Merit: 1703
airbet.io
-snip-
If you Google the word "gambling" this is what you will get "gambling, the betting or staking of something of value, with consciousness of risk and hope of gain, on the outcome"
Technically, if we say crypto trading is gambling is not something wrong because the end result is not guaranteed even with the use of FA and TA.

Search with the keyword "Trading" on Google and this is what I got "Trading, includes buying and selling stocks, commodities, currency pairs, or through other financial instruments. The purpose of this activity is to collect margin or profits that exceed buy-and-hold activities in investment activities."

If you say crypto trading is gambling, this is not entirely true.
The correlation of gambling includes user activity that seems to be just guessing without any analysis.
Trading with technical and fundamental analysts suggests that there is some attempt to read past data to figure out what price is going to be.

While gambling is just guessing, there is no definite analysis of past data, except for gambling games with player analysis and others.

But in general trading and gambling are different, but futures trading will probably approach like gambling when beginners do it.
Just guessing the price without doing any analysis, up or down and setting a large enough leverage, this is gambling that is possible in crypto.
hero member
Activity: 2590
Merit: 650
Want top-notch marketing for your project, Hire me
You said it yourself that the market is unpredictable which technically means despite the TA and FA prediction crypto trading is still just like gambling.
In fact, we can judge this by the stats of crypto traders who quit and those who were successful.
To be honest, it turns out that the best way to deal with this market is long-term investment.
The cryptocurrency market is certainly unpredictable, but it is by no means meant to be called gambling.
I don't how you get your impression but I am not talking about crypto investment and what I am talking about is trading.
If you Google the word "gambling" this is what you will get "gambling, the betting or staking of something of value, with consciousness of risk and hope of gain, on the outcome"
Technically, if we say crypto trading is gambling is not something wrong because the end result is not guaranteed even with the use of FA and TA.
sr. member
Activity: 2436
Merit: 324
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 both beneficial; it is up to you to determine which one is more beneficial in terms of profit. You can't merely discuss the basic and technical with such an easy explanation here unless you educate each step to actually use the two.

Because not all or even the majority of them grasp the application of technical and fundamental analysis. Because there are tools utilized there to execute those two tasks, and most individuals here do not yet know how to use and understand those tools in genuine trade.

You would really be finding on yourself on whats the relevance among the two on the time that you do face up those market conditions on which you do really be able to determine which one would really be relevant
or both would really be something that useful.We do know that market news and other events could really be giving out that kind of impact in speaking about market movements on which it cant really be denied that
we would really be able to notice on whats really that something that you would be needing on a specific situation. We know that the market cant really be having that kind of news time to time
on which means that you cant really be to apply any technical analysis on which it is really just that right that you would be making adjustments.

You should really know on how to make use of both FA and TA because it would really be something helpful on the time that you would hover yourself into trading career.
You would reallly be finding that these skills is a must learn because if you dont then you are just basically doing gambling if you are really that just making some
wild guess and pure picks without any basis on the time that you do trade.
legendary
Activity: 2772
Merit: 1128
Leading Crypto Sports Betting & Casino Platform
The cryptocurrency market is certainly unpredictable, but it is by no means meant to be called gambling.Unpredictability means that there is always volatility and the market can go in any direction at any time. If a coin falls in value, you can hold it.Then how can this be a gamble? In this, global news and news about a coin can also lead to market volatility. However, experienced and expert people make their own analysis , and often the analysis of such people are proved to be correct.

Market also has its own trend and we always have to go with the trend. If a trader fails in the cryptocurrency market, instead of blaming the cryptocurrency market, they should reflect on their mistakes. Your long term investment proposal is good as it does not expose us to market fluctuations as we aim to earn good returns in the bull season, but entry at the right time is very important even in long-term investments, because the lower the price we buy, the more likely we are to make a profit.
I agree, if we called everything that is not certain, then we would have to call any investment that is not gold to be a considered as gambling. I am sorry but that is not how investment works, just because there is risk, it is not gambling at all. In gambling, house always wins because of the house edge, and that means we are going to see casinos get richer, it is automatic and it's written in the rules, in investment we could all win together. I can buy at 10 dollars, sell at 20 dollars and profit, you can buy at 20 from me and sell at 30 and make a profit, meanwhile we both pay fee and exchange profits too, we all profit.

I mean there are of course down times too, but we need to realize that comes with any investment ever. We are definitely certain that life is not all that easy to just invest and profit, but we are not risking like gambling, we are "risking" the money, gambling means we are just giving it away, quickly or slowly but we are going to lose there.
full member
Activity: 784
Merit: 117
Chainjoes.com
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 both beneficial; it is up to you to determine which one is more beneficial in terms of profit. You can't merely discuss the basic and technical with such an easy explanation here unless you educate each step to actually use the two.

Because not all or even the majority of them grasp the application of technical and fundamental analysis. Because there are tools utilized there to execute those two tasks, and most individuals here do not yet know how to use and understand those tools in genuine trade.
sr. member
Activity: 2800
Merit: 344
when lambo...
For the people who want to engage in investment regarding the crypto knowing with this TA is a must because this serves as a guide to them with their investment execution for their entry and exit to their investment,. I highly recommend at least using the basics of support and resistance even pro I guess seems to keep doing this because this strategy gives you a hint for another pump, continuous dump or even just a sideways of the market. Aside from it, ideal to use of the technical indicators like MACD this is not the only one but the most basic one and beginner friendly too. Always set a plan, stick to it if doesn't work change, find the mistake and learn from those.
Perhaps, TA and FA are huge contributing tools that help us achieve success. Therefore, it was necessary to know them but of course, it was not just knowing how it works but also, how to apply it in real life.
Honestly, many traders lack of application than knowledge and one reason is that they are uncertain, they're not sure of their actions, and they are not confident enough with themselves. It doesn't make sense anyway if we never know how to deal with the market using these two things Technical and Fundamental Analysis, still end up losing.
sr. member
Activity: 336
Merit: 292
You said it yourself that the market is unpredictable which technically means despite the TA and FA prediction crypto trading is still just like gambling.
In fact, we can judge this by the stats of crypto traders who quit and those who were successful.
To be honest, it turns out that the best way to deal with this market is long-term investment.


The cryptocurrency market is certainly unpredictable, but it is by no means meant to be called gambling.Unpredictability means that there is always volatility and the market can go in any direction at any time. If a coin falls in value, you can hold it.Then how can this be a gamble? In this, global news and news about a coin can also lead to market volatility. However, experienced and expert people make their own analysis , and often the analysis of such people are proved to be correct.

Market also has its own trend and we always have to go with the trend. If a trader fails in the cryptocurrency market, instead of blaming the cryptocurrency market, they should reflect on their mistakes. Your long term investment proposal is good as it does not expose us to market fluctuations as we aim to earn good returns in the bull season, but entry at the right time is very important even in long-term investments, because the lower the price we buy, the more likely we are to make a profit.
hero member
Activity: 644
Merit: 592
Leading Crypto Sports Betting & Casino Platform
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
Are you saying you would continue to buy coins/tokens based on the mentality that the unexpected could happen? Well, that's not the smart idea, you should get well prepared for both bad and good unexpected. You are so lucky this time that your decision based on people's actions worked this time, however next time, I advise you to be more thorough and practical, do not just buy coins/tokens because people are doing so, do your research and let the main two analytical styles (Technical & Fundamental) guide you. Fine, people's hype and decisions might help you to get the attention of the right coins, but if I were you, I would first go straight to the origin, projects and fundamentals behind it to know if it's the best project for me before committing my money. Also from there, I will talk to my chart to know if it's the right time to buy the project whether good or not.
hero member
Activity: 2590
Merit: 650
Want top-notch marketing for your project, Hire me
I agree with what you said and that's the exact reason why I never liked crypto trading because knowing how to use fundamental and technical analysis skills is not enough to make a strive trade because there will always be something missing at some point due to the market volatility.
Having fundamental and technical skills is good but doesn't justify a successful trade and the best way to have success is by making long-term investments in crypto like BTC, or altcoins that will always make new ATH prices when it is BTC block halving market.
Whether you do like it or not, there's nothing you can do but to deal up with TA and FA. How you would really be gonna able to deal up with this unpredictable market? Doing some intuition picking or entry?
thats just pure gambling in the sense. This is why you wont really be having no choice but to know on how to make use of it or else then you would really be finding yourself would really be lost into this market.
Yes, there's no way to deal with the crypto market in the trading space without the use of TA and FA but it's the chance of the market analysis not being productive at some point is what I am pointing. You said it yourself that the market is unpredictable which technically means despite the TA and FA prediction crypto trading is still just like gambling.
In fact, we can judge this by the stats of crypto traders who quit and those who were successful.
To be honest, it turns out that the best way to deal with this market is long-term investment.
legendary
Activity: 2086
Merit: 1058
For the people who want to engage in investment regarding the crypto knowing with this TA is a must because this serves as a guide to them with their investment execution for their entry and exit to their investment,. I highly recommend at least using the basics of support and resistance even pro I guess seems to keep doing this because this strategy gives you a hint for another pump, continuous dump or even just a sideways of the market. Aside from it, ideal to use of the technical indicators like MACD this is not the only one but the most basic one and beginner friendly too. Always set a plan, stick to it if doesn't work change, find the mistake and learn from those.
Unfortunately there are "let me just do what this twitter influencers tells me to do" type of people as well. When in reality I agree with you and TA with FA combined would make someone money 90%+ of the time, you should be careful about it, and there are moments when things go south but that doesn't change the fact that you need to be careful and do better.

I hope that people could realize how that could change, and I understand that it may not be something that would be greater but in the end we are talking about something that would get better. Hopefully there will be more and more people who will use TA and FA so that the market will get back into shape and the price could do better as well that's the most important part.
sr. member
Activity: 504
Merit: 323
Fundamental tells you what to do, while Technical tells you when to do it
Not exactly this but you have some merit on your opinion. Fundamental Analysis is use for long term holdings since you will choose an asset to invest if it has a good fundamentals so that you can guarantee success in the future while Technical Analysis can give you a guide on when to enter and exit through indicator and chart patterns.

Not really mate in trading I think we classify fundamental knowledge as the basic knowledge of what you need to know in trading. When someone says fundamental knowledge, it means that basic knowledge and trading are not the same as holding, as you stated. The OP is talking about trading, not holding, as you stated. However, the fundamental knowledge of trading is the one that will be your guide in everything you want to do in your journey, while the technical aspect is the one that will guide you on how to manage the market, the risk, and the chart of when to buy and when to sell. However, both of these are working hand in hand. In my opinion, fundamental knowledge of trading is guiding you, and the technical aspect also does the same thing, just that technical only focuses on the technical part.

Everything in life begins with a step; one error can change your entire world, thus in terms of trading, a person must be familiar with the two concepts you described earlier: fundamental analysis and technical analysis. It is critical for us to acquire understanding about trading before we enter it, especially we beginners. Because understanding the concept of trade allows you to appreciate and benefit from it while also knowing how much money you can afford to start with.

Very important: everything starts with a step, but we can ignore something to make an error, then later change. We need to learn since we are talking about funds. We need to learn before entering the market. We should not make an error before the market changes our lives. We should learn as much as we can, then confidently start the journey. It will be better than having an error, then deciding to change or start seeing changes. However, when I’m talking about risk in trading, I don’t only talk to beginners; I also talk to experts. Some mistakes are unavoidable, and anyone can do them, both beginners and experts, so therefore we need to trade with caution. We all need to use the money we can afford to lose, not just beginners.
legendary
Activity: 3234
Merit: 2420
So, my friend who just started trading asked me …

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

I am not really believer in the technical analysis nowadays even though I followed it like a cult member in the past. Let me give you an example;

A company that has a very good balance sheet, the sales are booming and the price to earnings ratio is reasonable but, the price is at its ATH. Without knowing these details, a Technical analyst will probably tell you that it is an expensive stock.

But a fundamental analyst will advise you to buy more since it has a lower p/e ratio than its competitors and a very good balance sheet. This guy won’t even check the price or the chart to give you this advice.

I am not saying TA is complete crap but it comes very close.
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