Topic: Know how to use Fundamental and Technical Analysis - page 3. (Read 551 times)

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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

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.

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.

Just found an analogy and I'll leave it here:
Fundamental analysis is like looking at the engine of a car. It tells you how well the car is made, and what it's capable of.
Technical analysis is like looking at the car's dashboard. It tells you how the car is currently running, and whether it's likely to break down anytime soon. 

If you're buying a car, you'll want to look at both the engine and the dashboard. The same is true when you're trading cryptocurrencies. You want to find coins with strong fundamentals, and then use technical analysis to time your trades.

And this is my personal approach:
Fundamental Analysis is beneficial for long-term investments while Technical Analysis is useful for short-term trading or day trading.
FA is the vehicle that will get you to your destination.
TA is GPS that guides you on when to make turns.

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.

You need to master this one first
Be fearful when others are greedy and be greedy when others are fearful from Warren Buffet.

If you can not master it, can not understand the psychology of market cycles, you will fail with both fundamentals and technical analysis because your fear and greed will prevent you to do right decisions.

It is a biggest challenge and a hardest one to master, not technical or fundamental analysis.