Combining Fundamental And Technical Analysis

By admin on October 1st, 2008

There has been many discussion about which strategy is better, fundamental analysis or tehcnical analysis. Technical aproach has been reinforced by trading software which can be used to predict price based on price simulation, where it uses models for each market without regard the underlying economy or fundamental which driven the market. Several recently developed programs help boil down the maze of economic and fundamental information into a form useful by traders who do not have formal training in economics. These programs help track the impact that economic indicators have on price in various markets. Such software gives traders an easy-to-understand link between fundamental data and price. The technical analysis is easier to use than fundamental. But when the market crash on October 1987, traders started to pay attention on the fundamentals, like unemployement figures, trade deficit, unemployment, and commodity supply/demand data . With the combination of two strategy, we will have quite a powerfull strategy.

Technical analysis tells us when the price will likely move, while fundamental analysis tells us what stock is good. By combining the two strategy, we can have a good stock which the price will likely move. A trading plan is needed to win the battle win other investor. You need to know how to choose a good
stock, and how to choose a stock which will move in favor of us shortly.

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4 Comments »

  1. Trackback by:
    forex online trading

    forex online trading…

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    4x mini

    4x mini…

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    If there’ s such a time which is best time to invest in mutual fund, I’ d say this is one of the best time to really get into mutual funds. You must be sayin’ “ Are you nuts? With the worldwide depression and all time high cost of oil products,…

  4. Comment by:
    fx female-trader

    Which is better??? U have to use both people!!!
    One tells u the cause and the other the effect, so to speak..
    This is an explanation: http://www.ac-markets.com/forex-education/forex-analysis.aspx, it backs me up that they have to be combined.
    G´day all!!!!

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