Technical Trading or News Trading

[ghaze]

Hi experts out there,

I'm still wondering what is the best way to trade forex market?

Some of the experts say NEWS Trading, some other experts would say TECHNICAL trading...

Please provide me some idea... where should i start from?

[EugeneFXI]

Hi Ghaze!

I personally would lean more towards technicals, but keeping fundamentals in mind (like when they are scheduled to be announced) would let you know when to expect volatility. So I voted for both.

Generally fundamentals force technical patterns to complete, so they are very much interrelated. But as technical traders, we tend to focus more on having the correct entry and trade planning, and not really caring about what those fundamentals say.

Other traders might differ

[Rexx34]

My friend....the best traders in the world take into consideration both technicals and fundamentals. Why shouldn't you!

[overtrader]

I think for scalping or intraday trading fundamental analysis or news not necessary, you just need to focus to technical analysis and the suitable equity.

But if you trade for long term (weekly or monthly) I think news and technical analysis is necessary.

[ailovefx]

Chicken or Steak...there is no true answer. Some people are into technicals and some are into fundamentals.

I am into technicals 100%. Trading on 4 hour and daily charts, news is not that much of an issue with me.

[fxangel]

Throughout your journey as an aspiring Forex trader you will find strong advocates for both fundamental and technical trading. You will have those who argue that it is the Fundamentals alone that drive the market and that any patterns found on a chart are simply coincidence. On the other hand, there will be those who argue that it is the Technicals that traders pay attention to and because traders pay attention to it, common market patterns can be found to help predict future price movements.

In order to become a true Forex master you will need to know how to effectively use both types of analysis..

[awsl]

My perspective, fundamentals shape the market, technicals does the correction.

Why?
A good example is the Fed .75 rate cut 3 days back, most currency pairs change direction and move over 200 pips for the next couple of hours.
Is there ever a technical setup that reach a certain time which will change market sentiment and move 200 pips?

You need to watch out for fundamental news to understand market sentiment, technicals for your trade setup.

[fxangel]

Originally Posted by awsl

You need to watch out for fundamental news to understand market sentiment, technicals for your trade setup.

You got that one right! I totally agree with you on that awsl..

Using fundamental and technical analysis are very important in analyizing the market..