Topic: Technical or fundamental analysis: what is the best choice? (Read 948 times)

I think technical analysis is more important. Often, the analysis predicts a major news, and only after this news price makes sudden movements. Based on my experience, I would say that fundamental analysis only confirms the technical

Currently i trade in the crypto market and stocks market too, so im not really have times to analysis the price of each asset in fundamental so i prefer to predict the price by technical analysis. In my opinion technical analysis is better to use for day and swing trading, but for long term investment we should learn about fundamental analysis.

In crypto trading, Fundamental analysis is work better because when any crypto has good fundamental the price can be going up to 10 times in 1 month and 100 times in 1 years. But when crypto has bad fundamental the price can be going down to 90% more. TA not really accurate in crypto trading so better we spend more times to analysis based on fundamental in the market.

Hey,

I'm a beginner and i'm digging into technical analysis. If you are interested in day or swing trading, than you can check a discord group that i found recently.
Voodoo Crypto - they make some chart analysis every 8 hours. It will give you guidance to perform a profitable tradings. You can also talk with more experienced people there. What is more, twice a month there is a special Friday, when you will receive analysed chart every hour.

My advice is to start with a technical analysis to start, and then move smoothly to fundomental

The both are very good. Technical analysis has to do with charts and price action and to get the best points to enter a trade based on your strategy and fundamental has to do with the news. Its best to combine the both analysis in your trades to be able to come out profitably in trading but I prefer technical analysis

I think both analyses are good if you are capable of doing both. Fundamental analysis is good for knowing the basics of crypto market and with technical analysis you can understand the ups and downs of the market and the reasons for it. You can make your decisions about your holding better if you analyze the market technically. Therefore I think both are good.

The best choice for the analysis of the cryptocurrency depends on its current state in its progress the technical analysis is the best thing to do since the deductions are the main part whereas fundamental analysis is done with new coins entering the market

Maybe you are right. Many people do not understand what fundamental and technical analysis is. It is not easy to analyze the market thoroughly. You will have become as expert for making good analysis to know about the current and coming situation of the market. It is better to study the views of a credible analyst. You will better understand the market.

I'd love to hear how people conduct Fundamental analysis on Crypto.

You know, since none of the currencies actually have a real world value, meaning fundamental analysis is completely useless.

Fundamental analysis as it pertains to the Stock and Forex markets means analyzing things like a companies earnings, assets, or a countries GDP (gross domestic product) in the case of Forex.

That's why it's called "Fundamental Analysis", because you're analyzing things that are fundamental to the value of the asset.

What's fundamental to the value of a Crypto? An exchange being closed? A hack? An influential person coming out and saying they like a coin? None of these things have anything to do with the real world value of Crypto itself. If Bill Gates comes out and says "I'm investing in Bitcoin" does that mean Bitcoin is suddenly going to be accepted as a new form of currency? Of course not. What about the hard fork? Did that mean Bitcoin was suddenly going to take off and be successful?

If something doesn't have a real world value - which Cryptos don't - then analyzing news to determine what it's current or future value will be is waste of time.

technical and fundamental analisys very usefull in order to get best trading result.although it need long time to learn it.but it will give us big good result in our trading.big profit with minimize risk.

I can agree on that, both of those techniques are really important in order to have a full understanding of the process, so you need to be able to look on the market from different points of View.

Truth is technical analysis keeps changing based on the fundamentals. So it is always advisable that we should be focusing more on the fundamental aspects of the crypto currencies. There is always confusion in the technical analysis because most of the experts rely on the different theories to plot their graphs and thus the end results come out very much differently. I have literally seen people making opposite analysis for a particular coin! One might predict the price movements upwards while literally other one says it will halt at same position or may go down. So I always see fundamentals and make the live decisions.

I think both are good choices because you are able to analyze the market by yourself you can trade affectively. Both will enhance your knowledge about the current and coming situations of the market. For me technical analyses are mandatory for knowledge about the market. If you have information about the coming situation of the market you will trade effectively.

In trading , both of them have their own effects on price and for every profitable trader to trade well,.one needs to know how to use the both effectively. Its very advisable to learn the both of them as the both of them can help a traders career in trading

The analysis to be used for the cryptocurrency is dependant upon the time you have for the coin and to make the investment decision, When it comes to a short time you can just jump onto the fundamental analysis

I choose both depends of the need of the situatin technical analysis better to use for thus people lack of time and use it for the day trade analysis, technical fundamental advisable to the people want to focus for the long term hold and have a lot of time to learn its piece of coins in the cmc.

It is not right to choose between these two types of analysis. For successful trading on the crypto currency and financial markets, you need to use both fundamental and technical analysis, since only in this case the trader will be able to find the most profitable trades.

For me,if you want to be successful in trading both technical and fundamental are essentials for you to become truly trader,these analysis are very helpful to achieve a certain goal in trading,

I disagree on what he said in the OP where Fundamental Analysis is least accessible to investors. In stock trading all companies are required to disclose to the public all their projects, income statements, and future plans as their investors must know where the company is headed. However in Bitcoin you will barely have Fundamental Analysis as really they don't have anything to show and the supply and demand for it cannot be considered as a data for fundamental analysis.

This world of cryptocurrency is so vast and diverse, I don't know what is better technical or whatever else analysis, because it takes eternity to understand the processes that are going on here

I agree with TS. But you should not underestimate technical analysis too. Yes, it doesn't work as it should in crypto, but many people believe in it. Knowing what current technical analysis prediction is is knowing what this people believe in and how they will trade. And this is some very useful information.

Yeah those are called professional that can use fundamental and technical analysis. To know the basics of cryptocurrency and the current and upcoming situation of the market will enable you to take right decisions on the right time, and that is the key to success. You can make huge profits if you can utilize these two types of analyzations at the same time.

This is both in different detail and use and much effective way is choosing both that is the best choice. If the OP wants only one i am with fundamentals for the reason that i am a long term trading most of the time.

Technical analysis is both good for long teem and short term in prediction of any charts so it suggests a good solution to make short term trading or profits in a short time without looking on its fundamentals. Basically technical analysis follows the waves or up and down volatility of any coin.

In this online industry, there are too many websites that are provided cryptocurrency signal. That is a technical analysis but the technical analysis does not work properly. I think the fundamental analysis is perfect for the cryptocurrency. I'm always analysis manually because it is perfect for me. In a couple of days ago I'm using technical analysis but that was not perfect so I don’t use it, right now.

TA and fundamental are very influential to each other, so it would be better we have to use TA and fundamental for trade analysis
use TA and Fundamental make your analysis more accurate, so i think use TA and fundamental is the best choice

Both are excellent analyzes, so this works for you, the legendary trader says that fundamentals are one of the best ways to know about everything about price movements, it's very exciting from the past to the present because it's so effective to get an understanding of most parameters important of the different dimensions, as well as the actual technical analysis of both is a good way can still be profitable, professional traders are now using a combination of fundamental and technical analysis to gain a better understanding of the ongoing investment prospects.
Fundamentals are widely used to understand before long-term investing, on the other hand to discover the benefits of price volatility in the market with a short time it is appropriate to do a technical analysis, depending on the taste and knowledge of where you want to go.

Yeah I think the best choice is to spend some time with crypto trading expert. From expert you can learn many things in less time. If you want to observe yourself you may do not understand how to analyze the market and how to predict the future situation of the market. A teacher can teach you better than a book. Don’t try to read the book by yourself.

Yeah you are right but by doing TA and FA you will satisfy yourself and it may give no benefit but for understanding the market I think that both are good. How will you observe the market? Looking get the daily price chart, TA and FA and the predictions. These are the sources of future situation of the market. I think that TA and FA is good than believing in predictions.

what do you guys base your FA on Bitcoin on? "people will buy again, cause they think it will go up again cause it happend before"? this is actualy a TA

Fundamental analysis are the main movers of the price of any financial asset but it need to be back by technical analysis too. Both become very effective with the traders price speculations of what an asset ought to be.

I convinced that one should become an expert in both. I did a lot of only technical short term trades but I've never entered only reling on fundamentals.

As far as the crypto market is considered I am pretty sure technical analysis gives nothing but crap to us. The technical analysis keeps changing every week in the crypto space because of ever changing facts, reasons and reality of the real world towards the crypto currencies. They hamper it again and again with bad news, some sort of storm emerges even with smaller changes in government perspective towards the crypto. Now you tell me why one should choose technical analysis if fundamentals are taking over so easily.

It depends on your capability, TA works only if you know how to done it properly.
FA and TA is really important, if you want long term holdings then FA can be a good strategy because TA really good in short term investing (Trading).

Both are important in this market, and don't just save money learn to diversify it you cannot earn much in just saving money.

It's a vague question, actually. There are not a lot of good resourses for TA (and some people used to say that it doen't work at all). And there are no ways to eveluate those projects with traditional FA.

I think both are important to become aware of the market currency and coming situation. Successful traders always do the same. When you have complete knowledge and information about the crypto market, you can make huge money from positive trading. By this way you can become successful trader. Expert’s opinions can help you a lot in this regard.

there is no FA for financial bubbles. You can defend the ideia that it never will fully pop, but it still is a bubble in terms of that the value is dozens or hundred times higher than it's fundamentals.

I think fandamental analysis is more important. Before you earn money, you must save it

Because of Volatility, you must not trust so much on TA because of so much price manipulation but of course traders must still know how to use it properly. FA is a must when you are planning to hold long term, the best choice will depend on your goal so make sure you goal is clear to you, some people do trading and when the price dump they become a hodlers.

Right mate and that makes it extremely difficult to trade the market these days without having to make use of your tight stop loss even with the TA. I switched to TA and basically trend following without making a rush into the market based on how things have been lately and I feel that has helped a lot. However, it is not like trading the market without TA is still not possible, but one should always have it in the back of the mind that it just does not work every time.

Fundamental analysis has never worked for me either and in fact, why stress myself trying to go through every details of what is happening to a market fundamentally, when the market can just give me all I need to know about its movement by making use of technical analysis and also keeping it at the back of my mind that I still need my stop loss anyway which most times does not even get activated anyway.

Technical analysis is simply the best for any trader that is ready to take the best advantage of the market.

For me, Technical Analysis for day trading while fundamental analysis when I will hodl long term.

I would rather choose TA. Technical analysis works a whole lot and no trader can obviously do without it. During my years of being mentored, I got it into my thick skull never to expect 100% profitable trade most of the time.

The essence of TA is to guide you on the possibilities of the market movement with the use of certain patterns and indicators, but they are not there to predict the future for you which is the reason a lot of people think it does not work.

I simply have been using TA for a long time now, and it has worked for me 70 - 80% of the time. Stop loss was never put there as decoration and they are meant for you to use while understanding that as much as your TA depicts the possibility of a particular direction, things can still go haywire.

Of course. While I like to say that TA doesn't work with BTC, it's not always like that. Some very obvious patterns remain and people do follow them. For instance every time BTC hits double top or bottom it tends to reverse and it's been like that for years. Same with decreasing volume. It usually signals a breakout.
The more obvious the signs the more people will notice them and follow. I usually go after the fundamentals, that's why I'm holding BTC now.

Even on long term aspect you can still make use of Technical analaysis on which it would completely correlate with your fundamentals which i do applied it also with my trading ways.The thing here aboutt TA is that this is commonly used for shorter timeframes where specific indicators being used on a matter of time on what you are engaging on. Best choice would vary on your needs the thing you do need is to mixed either both or just focusing on single way as long you are doing effective trades then stick with it.

My experience tell me that neither a technical analysis nor fundamental analysis works fine because market is much difficult to explain it by formulas or patterns. Neither TA nor FA does not take into account sentiments, inside trading and so on.
From time to time TA or FA works well but it is not enough to successful trading.

i personally believe a blend of both technical and fundamental analysis is cool but doesnt necessarily mean one is immuned from making faulty investment decision.

Yes, learning it both will be a great advantage, but to me, the best thing to learn as a trader most of the time is technical analysis so as to help guide you on making decisions. Even sometimes, most especially in the cryptocurrency market, fundamental really will not work. However, for those who may be in the long term style of trading, it can help combining some little bit of technical analysis and most of fundamental analysis but really, technical analysis gives a lot more advantage to a trader than fundamental analysis.

They are both a very good choice depending on how well you know how to use them. When both are combined especially in a regulated market, it ends up giving you an advantage. The best choice must be combination of both technical analysis and fundamental analysis.

Nevertheless, in any way, one cannot do without TA and most of the time; it is a lot better than just relying on fundamental analysis completely, most especially when it comes to a market such as the cryptocurrency market where you still have to use your discretion without any emotion most of the time.

For cryptocurrency, fundamental is better especially with long term hodl. In this, fundamental are the roadmap/whitepaper and the schedules of the team from time to time including when making listing in new exchanges. For me, it is better if you are hodling.

I think it's better to do both. If someone is investing long-term fundamentals are more important. If its a short-term trade its OK to do TA based decision I think

I'm trading for 20+ years now in the financial markets and in my experience i can tell you that fundamental analysis doesn't work for me. You can have good fundamentals and price goes down, bad fundamentals and price goes up. There's only one thing that matters and that is price, so i use technical analysis!
It depends on your trading style how and what TA you want to us. I use different trading systems side by side because there is no holy grail system that works all the time. So i use 3 different systems, Trendfollowing, Mean Reversion and a system that buys oversold pullbacks in uptrends.

If you are just starting at TA i advise you to start out with one system and master it before you take the next step. And remember discipline is the most important key feature of all. Without that you can turn a winning system into losing

Good luck trading!

 

If you want to become a successful trader you must have skills and understand of both technical and fundamentals analysis.  A bird that will fly successful will always used two wing.  You can not used one and forgotten the other.  If you must succeed both technical and fundamentals must form your investment knowledge  and idea.

When you want to learn how to trade, you have to learn it both. Technical analysis is usefull in day trading and for long term investment you have to learn fundamental analysis. Fundamental analysis consist of the team founder of project is solid or not and what problem they want try to solve. Technical analysis is does not work accurated in crypto trading but this is very usefull for short trading to understanding support and resistance area.

Agree on some points when it comes to the influence of bots but still technical analysis is widely used up by most traders here on crypto and yes it might not be precise or accurate compared to stocks or forex markets but somehow its much better to have these kind of analysis rather than on not having any indicators at all. Why would choose up between technical or fundamental if we can able to apply both things? It would be much better for us to use technical and fundamentals at the same time, might not be easy but would really be worth of.

For me fundamental analysis is good for longterm investment. For short term feeling market emotions is more important. Knowing when there is panic peak etc - dont confuse it with TA.

TA:

TA worked years ago. Now majority of volume is made by bots and ai bots.
Most of TA indicators was made years ago for low variability stock market when you need to call your broker to made trade.
TA especialy dont work on market this small bacause even few mil used wisely by whale can push price +-50%

TA indicators investor is like trading bot but much slower, more stupid and susceptible for emotions and gambling. You become piggybank for those bots who will alwais be faster and better than you.

Technical analysis is very practical, accurate in the short term and convenient in terms of selecting points for entering the market. He does not require any complex skills and specific skills.

However, technical analysis is limited by its own postulates and often does not "notice" the undervalued crypto-currencies that would quickly reveal a fundamental analysis

The fundamental analysis is more labor-intensive and complex, less accessible to novice investors, but the most effective for long-term investment. These types of analysis are so different that the best solution seems to be using both of them. This is exactly what experienced traders advise to do.

The ideal scheme for analyzing the crypto-currency market includes both technical and fundamental analysis. With the help of fundamental analysis, the investor can select the most promising coins and make a decision on the allocation of investments. A technical analysis will help him choose the optimal time taking profit.

You can also act in the reverse order. For example, use technical analysis to find the crypto currency in an uptrend, and then check with a fundamental analysis whether there are objective reasons for its growth.

The combination of shadow and fundamental analysis plays into the hands of both traders who are interested in quick earnings on high volatility of the crypto currency, and portfolio investors who form deposits for long periods.

However, only those who already have experience with crypto-currencies will be able to use them correctly. If the basics of technical analysis can be learned even on YouTube videos, then fundamental analysis for beginners is generally not available.

For starters, you just need to read analytical summaries, take part in discussions at thematic forums such as www.bitcointalk.org and raise your level with all available training materials.

What do you prefer: technical or fundamental analysis?