Is technical analysis is best method of trading ??
Is technical analysis is best method of trading ??
Technical analysis is really good analysis system. Most of the trader feel comfort with this technical analysis because we do not need to analysis news here. we can analysis the chart by using various trading tools like trend line, support resistance, Fibonacci , indicators. We need to know the market movement for our trading. if we analysis the market with this tools then we can get an idea about the market trend. And who can identify the market trend he can easily make good trade in forex business. Most of the trader think technical analysis is easy than news or fundamental analysis. fundamental analysis or news is not in our control. After published the news we need to take analysis. for this reason technical is easy for the trader.
Yes of course, the technical analysis is the best method of trading because it allows you to know market trends well and to determine the good entry and exit points in the market, where there are many tools can be used in the technical analysis such as the support lines, resistance lines, and trend lines can help us in determining the best entry and exit points in the market, and also there are many indicators can help us in knowing overbought and oversold points in the market and also there are many other indicators can spot the potential reversals which may occur in trends, so we can say that technical analysis can make us follow the impact of the economic news in the market, because after releasing the result of the economic news if a breach occurred to a trend, support, or resistance line, we can know well that the market will moves in the direction of the breached level, but this doesn't mean that we can depend on the technical analysis without giving any care to the fundamental analysis, but we should only know well the times of the economic news to avoid the trading during these times because the impact of the economic news lead to a big fluctuations in the Forex market and these fluctuations don't respect the technical analysis, so we should avoid the trading during these times.
Technical analysis is good in analyzing the market in for ex trading business . Technical analysis involve the use of present market condition in analyzing the market and it also involve the use of indicator and some other parameter in analyzing the market,,technical analysis give a precise analysis of the market ,technical analysis enable the trader to sport good entering and exit in the market,technical analysis also enable the trader to know support and resistance level in the market ,it also enable the trader to know the trend or the direction to which the market is moving..Technical analysis is very good in forex trading business but for it to be effective it must be accomplish by fundamental analysis because of the impact of news in forex trading market.
Many other traders prove that alright because every one of us got our own best method for trading and we got our own reasons for that. Maybe it is technical analysis, fundamental, signal-following, or even relying the trade on robots. We choose anything that suits us best and experience the result with our good responsibility. I think that is all that matters. No need to explain the good and bad things of a trading method because nothing is perfect, everything has both pros and cons.
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Technical Analysis is one of the best trading methods that we can use for trading because we can make some of the most important things that we can trade, although sometimes we can give ourselves the basic opportunity to earn what we want from the market which can means that we are making one of the opportunity to trade, whatever we get from the forex market will always require money management because we can get something that would make us gain success, although when we want to gain some advantage for ourselves in the market we should take regard to ensure truth is told for ourselves, if we want to give ourselves basic understanding, it would make sense to earn as much as we are prepared to.
There are different types of analysis in forex trading which are technical analysis,fundamental analysis,sentimental analysis and market psychology.The best so far among all is technical analysis.Whatsoever happens fundamentally in terms of news and whatever the direction that the sentiments is pointing to will all be reflected technically.For this reason technical analysis is the main determinant of the direction of the market.
Technical analysis is all about making use of price action in conjunction with different kinds of indicators to form a strategy that will always detect the direction of the market fro time to time.At this same time it is not enough to neglect the place of others because they make the decision easier when well combined
In my point of view, technical analysis is best rather that fundamental analysis. Fundamental analysis need deep study of economics. You need a master degree of economics to fundamental analysis. But as regard technical analysis, tiny knowledge is need. Basically, it is an art. You can learn fit by practicing and experiencing. Technical analysis also used by fundamental analyst. Because it gives us the clue about the direction of the market. As well as determine the market entry and exist points. There are two types of tool available for technical analysis. One is classical tools and other is mathematical tools. Support and Resistance, Trends Lines, Elliot Wave, Patterns, Candlesticks are the example of classical tool. Mathematical tools are also called indicators. With these tool, we can predicts the reversal as well as continuity of the trend. Best example of technical analysis is head and shoulder pattern, when price breakout the the neck line of the pattern then we assume that price will continue in the direction of the breakout.
A forex trader is the one that decides what his best for him for both analysis method as well as trading in the forex market. As it is, I prefer to use the technical system of analysis and trading. Even though some traders see the use of technical analysis as a rather complex system of trading, I still feel like this trading system is quite simple to use. I mean it provides traders with the ability to combine whatever tool or indicator works best for them, giving them full control over their trade. The beauty with the use of the technical analysis is that it makes way for easy adoption of the fundamental system of trading and even paves way for pure market sentiment to be arrived upon successfully. In conclusion, I would rate technical analyst over every other market analyst and this would be for obvious reasons just as stated above.
We have two methods of trading Forex,the technical and the Fundamental method,and none of them is better than the other,they are both good for trading,if you are a technical trader you will still need to learn one or two things about fundamental trading and same thing goes for fundamental traders too,both system actually compliments each other,both we can not use any one of them in isolation,to succeed generally we must use both,no matter how good your technical analysis is you must still look out for the news before trading that is very important,if not you must just end up losing that trade,trading can not be complete without both system.