Sign up to save your podcasts
Or
Share EP38: Fundamentals vs Technical Analysis
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
EP38: Fundamentals vs Technical Analysis
In this episode of Truth About FX, Walter delves into the topic of using fundamental analysis versus technical analysis in terms of analyzing market movements. Walter also taps into one of the most common errors newbie traders make when it comes to using fundamentals in trading.
He also touches the several advantages of using technical analysis in contrast to using fundamentals when it comes to perception of news events, support and resistance, and market expectations
Download (Duration: 04:49/ 5.52 MB)
In This Episode:
00:40 – surprise news
01:02 – was it jusrt luck?
02:11 – personality of the market
02:54 – best trade ever
03:57 – what to pay attention to
Tweetables:
Decide whether or not there is a trade based on patterns. [Click To Tweet].
Pay attention to the chart, not on people. [Click To Tweet].
What does this news mean? [Click To Tweet].
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hi, Walter! What percentage of fundamentals versus technical analysis do you use?
Walter: This is interesting. For me, I am close as you are going to find to a technical trade. In fact, today as we are recording this, there is this surprise news event that came out. It is funny because I’ve been talking the last couple of days about — in my trade, in videos — talking about this formation on the chart on the AUD/NZD. I’ve been saying that the AUD/NZD is getting ready to make a giant move up.
Today, it did that and it had nothing to do… I mean, one way to look at is saying, “Walter, you’re just lucky because you’re saying that it was a bullish formation”. And it was lucky. The other way to look at it is that the technical chart, pattern on the chart, foreshadows the fundamental news that came out today that’s fight the AUD up so much.
It is sort of a “chicken or the egg: which comes first?” For me, I really focus on watching force on support and resistance on the chart. When the market gets the support and resistance levels, I decide based on the pattern whether or not there is a trade.
Usually, the answer is no, but occasionally it’s a yes. I am probably like ninety-five percent technical analysis. The reason why I don’t give fundamentals, I find them to be really difficult to interpret.
I found that when the news comes out, and you think that the market should go this way, but it doesn’t. It’s not related to the news, it is related to you have to interpret what the market thinks about what is going to happen.
It is almost like what is the expectations of the market and where is the market sitting to right now relative to what happens in the market when the news comes out. It is really tricky because you are basically trying to determine what the personality of the market is before the news comes out.
When the news comes out, you have to say “Okay, now that means this” or whatever. So, to me, it is just not my style. I do not want to get down that rat hole.
View all episodes
By Walter Peters (FXJake) and Hugh Kimura (Trading Heroes)In this episode of Truth About FX, Walter delves into the topic of using fundamental analysis versus technical analysis in terms of analyzing market movements. Walter also taps into one of the most common errors newbie traders make when it comes to using fundamentals in trading.
He also touches the several advantages of using technical analysis in contrast to using fundamentals when it comes to perception of news events, support and resistance, and market expectations
Download (Duration: 04:49/ 5.52 MB)
In This Episode:
00:40 – surprise news
01:02 – was it jusrt luck?
02:11 – personality of the market
02:54 – best trade ever
03:57 – what to pay attention to
Tweetables:
Decide whether or not there is a trade based on patterns. [Click To Tweet].
Pay attention to the chart, not on people. [Click To Tweet].
What does this news mean? [Click To Tweet].
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hi, Walter! What percentage of fundamentals versus technical analysis do you use?
Walter: This is interesting. For me, I am close as you are going to find to a technical trade. In fact, today as we are recording this, there is this surprise news event that came out. It is funny because I’ve been talking the last couple of days about — in my trade, in videos — talking about this formation on the chart on the AUD/NZD. I’ve been saying that the AUD/NZD is getting ready to make a giant move up.
Today, it did that and it had nothing to do… I mean, one way to look at is saying, “Walter, you’re just lucky because you’re saying that it was a bullish formation”. And it was lucky. The other way to look at it is that the technical chart, pattern on the chart, foreshadows the fundamental news that came out today that’s fight the AUD up so much.
It is sort of a “chicken or the egg: which comes first?” For me, I really focus on watching force on support and resistance on the chart. When the market gets the support and resistance levels, I decide based on the pattern whether or not there is a trade.
Usually, the answer is no, but occasionally it’s a yes. I am probably like ninety-five percent technical analysis. The reason why I don’t give fundamentals, I find them to be really difficult to interpret.
I found that when the news comes out, and you think that the market should go this way, but it doesn’t. It’s not related to the news, it is related to you have to interpret what the market thinks about what is going to happen.
It is almost like what is the expectations of the market and where is the market sitting to right now relative to what happens in the market when the news comes out. It is really tricky because you are basically trying to determine what the personality of the market is before the news comes out.
When the news comes out, you have to say “Okay, now that means this” or whatever. So, to me, it is just not my style. I do not want to get down that rat hole.