Topic: What are the benefits of combining fundamental and technical analysis? (Read 243 times)

Having the combination of both technical and fundamental knowledge is very important because having such knowledge will help you to generate a better vision and opportunity to minimise the loss in your trading journey because you have already gained all the knowledge that is needed in trading, which is the fundamental and technical analysis of trading. So all the things you mentioned in support of all the above are important because if a trader has all this knowledge, he will definitely not record many losses compared to someone who has small knowledge about trading. However, someone who has already gained all this knowledge will not lose much,it will be limited, as losing in trading is just something natural, whether a trader likes it or not.


Seriously, in everything we do, knowing the negative and positive aspects of such things is very important, as it will help us to be successful in such businesses so we don’t mess up with our money. However, for traders, it is more important to know the risk involved in trading before they even start trading so that they will know if they can cope with the risk or not before making their decision to start trading.

Trying to hover or making yourself deal with the market without having these tools is just that you are really that floating or lost in void on which you dont really know on what you should gonna do on which means
that you would really be needing something like this or else then you are just simply playing gambling in the first place on which making up some trading position or entries without having any make use of indicators or just simply with pure guess does really pertain or shows that you are just doing gambling and this isnt something that you must do in the first place. You are really that putting yourself on big or huge trouble.
As much as possible then it would really be that good if you do pair it with some fundamental analysis on which this is something relevant because we know that TA's arent that precise and could be easily be fucked up by some news or sentiments in the market and this is why immediate application of FA would really be that relevant.

It is really that important that you should really know on multiple skills on which it would really be something that contributive when it comes to your trading career. Dont limit out yourself
with just a single skill to have and much better that you would really be needing to versatile as much as possible.

I understand that promoting your new website is a good thing, and doing it this way instead of just slapping the link and leaving, so I think this is a good thing for the website as well and allows you to share it at a high DA place to get more SEO power, that's all good and dandy. But, try to make something that is a bit more "news" related if you are going to do it, because this is boring and known and could be argued for years and would still not get any results.

I would say that if you keep doing this, you are not going to get any followers because people will see a few things they already know and they would stop checking you out after a while, these are common sense stuff. But if you do news, that would be a lot better.

hmm, traders know that you have an advantage in trading if you know how to look at fundamentals and know how to do technical analysis, you won't lose easily, you are a more profitable trader when you know this

Most of the time TA is the ideal thing to do because the market is very volatile but if you want to play long, using TA and FA are more advisable.
Honestly, both are ok and can bring positive impact to your investment decision you just have to utilize it and maximize it.
I do FA on the projects that I believe can be good in the next 1 to 2 years and it works fine. TA for day trading or at least a week of trade, it will always ended up on what strategy you are using.

Fundamental analysis is useful but due to the characteristics of this market in particular using technical analysis seems like the best choice out of the two by far.

And this is because the number of good coins we have on this market is limited while the number of shitcoins on the market seem to be almost limitless, with this in mind fundamental analysis is not really going to help you much compared to the perks that technical analysis can offer.

Long term holders should focus on fundamentals and they usually focus on it. Only newbie holders focus on news and technical analysis but with time they can learn lessons from the market, news, fud and realize importance of fundamentals that are more important than technical.

Fundamentals if good are always good but technical parameters can be good now, next few months but will be bad next year whilst the fundamentals will remain the same and even become better. In the market fundamental and technical can be different and they don't come with same direction most of time.

When people lose money in market by their failures with technical analysis, they blame it on fundamentals which are useless and helpless for them. In reality fundamentals are good, unchanged but can not help them if they have wrong technical analysis or gambling with leverages.

News and fud don't change fundamentals but can break a technical pattern, trend and kill many gamblers in this market. Who are disciplined with fundamentals and DCA can succeed in this market while gamblers will fail and lose money.

Right, sometimes how good people at technical analysis is always lost when the fundamental news comes out.
An example is when the Fed says "I'm gonna raise the interest rate by 200bps" all the market would down including the stock market, crypto market, and forex market. So usually doing fundamentals first is good to go.

The fundamental analysis and technical analysis is important for traders because it helps you to know when to buy and when to sell, the type of coin to buy. It gives room to make profit, compare to when you are using only one. As a trader, it is important to always be at alert and know the right time to buy and sell due to the price of bitcoin at that moment. This is why both strategy are useful for traders for them to be successful. The risk management is also part of what trader should know so that they can manage their loss.

Both fundamental and tech analysis are not strategies by themselves. It is just different ways of getting and interpreting market data while the trading strategy may combine not only both of them but also include sentiment analysis or any other things you want to use (even tarot cards if you want).

IMO, there is no other way rather than combining multiple types of analysis if you want to trade successfully on a distance. None of the professional traders is sticking to a single type of analysis.

Exactly, it will help you to validate your analyze. Like for example, in fundamental analysis, it's good, it's somehow good news or good to enter.
But once you do the technical analysis side, it is not fine, like it is really showing bearish or not good to enter, like not yet a good time to enter. That's what I can see about combining fundamental and technical analysis.

Confirmation and pretty much only that. and also gives me confidence when I see good news on the fundamental analysis while on the technical side is the price tries to breakout the resistance zone or the price near the support zone.

and basically just like you have said. Sometimes long term holder also looking for news first and then entry at the technical side.

The combination of fundamental analysis and technical analysis helps in getting a comprehensive evaluation of the market trend investments since the fundamental analysis will analyze the intrinsic value of the crypto while technical analysis studies the crypto price patterns and other market behavior.
The combination of the two analysis always makes perfect armor when trading cryptocurrency.

What many investors do not understand is that combining the technical analysis and the fundamental analysis is what give us a real signal and what is happening in the market. Sometimes when we work with only the fundamentals analysis, we might make several mistakes and not understand the clarity of the market which can make us to make wrong decisions that will bring about huge loses.

We need to make sure that we are good in fundamentals and technical analysis at the same time so that we can benefit huge from the market. There are so many benefits apart from the listed ones in by op which we can tend to get from maximizing the opportunity to make sure that we are experts in the two types of analysis.

Indeed! Fundamental analysis is good to use to see how would the project or coins perform since it deals with the foundation of the projects, the plans and the people behind it, while Technical analysis gives us the knowledge of when to enter and exit the market since these deals more on the previous and recent trend of the projects market price and its signal for the upcoming trend through some mathematical calculation.

The combination of these two may supplement each other weaknesses and possibly synergize the pros.

This is the best reason because a combination of both analysis will make decision making concerning a trade to place much easier and can increase accuracy but It can also make analysis more difficult, and things more confusing which can lead to poor trading result.

Not sure if I interpreted this correctly, but anything to do with jumping from one strategy to another just shows that one hasn't polished the strategy one is currently using and this is a sign of gambling and experiments!

Otherwise I am leaning towards the technical analysis side of things and the only time I get to use fundamental analysis is when news is coming out and I stay away from the matkets as the volatility is high during these times.

The only benefit I can think of when combining the 2 strategies is them acting as a confluence , though technical analysis will always be a step ahead

All I know that there are profitable traders that only uses fundamental analysis and there are traders who use only technical analysis. So if we combine these two would definitely increase the rate of winning. In trading, the more confluence the higher the probability of winning the trade. But before you use in your actual trade, backtesting is a must. And remember, without risk management will just result to liquidation. So you must have a trading plan and stick to it.

A comprehensive vision is essential for achieving success in cryptocurrency trading. Without it, earning a consistent profit can be extremely challenging. Additionally, risk mitigation and flexibility in trading strategies are crucial factors. Depending on market conditions, these elements play a significant role in helping a trader gain a strong foothold in cryptocurrency trading. Nonetheless, it's worth noting that day trading remains a difficult endeavor. However, by implementing these methods, one can formulate an effective strategy and potentially generate profits by holding positions for a certain period.

I am not good at it but if it's going to benefit your trades when you use two of these analysis, why not right? Just use whatever works for you so that you'll win on your trades.

And there will be a lot more.

The main benefit of it is you'll be able to understand and see the other points of these analysis. Whenever you're confident with those, as said on #4 then the long term opportunity will be open and you'll be flexible when you're good at both of it.

You don't need to delete and create another one.. from your ending below you will see move topic at below the left hand side, select on move then move to trading discussion board. That is all and this one here will be automatically locked and the other place becomes active.

How to make the topic much? Do I have to delete here to recreate in another section or can it be moved as it is now?

Just whomever that has both knowledged combined often produces a meaningful results while trading as it helps in creatings good understanding for a trader to know when to enter market. Anyone who is of this knowledge also make the right choice to choose among coin to trade with relative to how important those coin are and how they can be holds in terms of investment, to crown it all this two things are what gives birth to a successful trading and whomever that can utilized the fundamental and technical analysis will also become successful in their trading journey. @sriyan suggested you can move this thread to above mention section to give more light to it.

I am following the above two an analysis to get more confirmation. If you are using fundamental analysis, you know the actual use case of the coin/token. Also, you can get more confirmations from the market news as well. Those belong to the fundamental analysis. If you know about technical, you can check the volumes of the trading and overall direction. But I think this post should move to the trading discussions

At least for long-term trading, it is necessary to combine the two types of analysis so that a more complete and relevant analysis can be made. What do you think, do you use both?

In our opinion, the benefits would be the following:
1. Comprehensive Vision
2. Signal Confirmation
3. Risk Mitigation
4. Capitalizing on Both Short and Long-term Opportunities
5. Flexibility in Strategies



https://coin-score.ai/articles/the-benefits-of-combining-fundamental-and-technical-analysis/