Which more dominant? Technical Analysis, Fundamental Analysis, or Sentiment Analysis?

[Boss]

Here no one just keep Fundamental Analysis and technical analysis just alone and they are just filler of each other both of them are very much dominant here in Forex trading and for trading any one has to consult the both for making more money.

[rasel]

In my experience in forex that 3 analysis are more important, a particular period one is best. Day by day forex trading you understand that when the situation which analysis is best. So practice more and more and never frustrated in forex trading, stay with forex trading, you must be success in near future.

[arif01]

People Those who are employed then also work with forex in rest time because it is on line programe and it is always open. So forex is a way of Income for man those who are gather knowledge about computer and online internet use knowledge. So Forex means a sources of income in on line by conversation various topics on forex trading

[moi for vous]

One of the dominant debates in financial market analysis is the relative validity of the two major tiers of analysis: Fundamental and technical. In Forex, several studies concluded that fundamental analysis was more effective in predicting trends for the long-term (longer than one year), while technical analysis was more appropriate for shorter time horizons (0-90 days). Combining both approaches was suggested to be best suited for periods between 3 months and one year.

Nonetheless, further empirical evidence reveals that technical analysis of long-term trends helps identify longer-term technical "waves", and that fundamental factors do trigger short-term developments.

Let's take the declining USD/JPY exchange rate in 1999 as an example. The pair lost 16% in the second half of the year, reaching a year low of 101.90. Both fundamentals and technicals alike could explain the downward move. Fundamentals attributed it to the continuous capital inflows into Japanese assets, which reflect investors increased optimism with the Japanese recovery. Technical analysts were likely to explain the move with the simple argument: the language of the market voiced a clearly downward tone that became more resounding after the breach of key technical landmarks (115 yen and 110 yen).

Thus, both technicals and fundamentals reached the same conclusion. Yet the devil is in the details. Fundamental analysts with a technical blind spot risk missing key market turnarounds after the breach of an important support/resistance level.

Conversely, a technically inclined analyst with a disregard for fundamentals and news releases would have missed the rebound in EUR/USD which was triggered by the release of a stronger than expected German business sentiment survey (IFO) in July 19, 1999. Up to that point, the euro had lost 15% reaching an all time low of $1.010. Most market observers-fundamentals and technicals were predicting the euro to break below $1.00. Technical analysts stated psychology, momentum and moving averages as arguments for further downfall. But fundamentally inclined analysts who paid attention to the strong survey would have been able to promptly exit their long dollar positions in favor of the euro. On that day, the euro jumped 200 points against the dollar with an additional 260 points on the following day, and an extra 150 days in the third day. In just two weeks, EUR/USD soared by more than 800 pts.

Obviously, the IFO survey release was not the single reason behind the euro's 7% rebound. Other factors over the subsequent weeks also helped prop the currency. These included a broadening improvement in economic fundamentals throughout the Eurozone and increasingly hawkish stance (favoring higher interest rates) from the European Central Bank. Nevertheless, the release of the IFO survey was the turning point in shifting expectations of the euro.

It has been often stated that combining fundamentals with technicals was counterproductive. Owing to their contrasting types, technical and fundamental analysis are often said to be mutually exclusive. Yet, a large number of traders combine the two approaches, even instinctively. Thus, technically inclined traders do pay attention to central bank meetings, give consideration to employment reports and heed the latest inflation numbers. Similarly, fundamental traders are often trying to figure out the major and minor levels of support, and determine the percentage of retracement formations.

There does not exist a specific formula for figuring out the optimum approach of combining fundamental and technical analysis in the Forex market. Some computer software packages claim to be able to make such decisions, weighing one approach against another depending on economic, technical and quantitative parameters. Yet, these are based on models from past patterns of inter-market dynamics and previous technical and fundamental behavior. The FX market is too dynamic for such pre-formed frameworks.

[sammy]

all of the analysis are important. i have seen recently that market behaves a bit strangely prior and right after the release of some major economic news. but that's okay and u need to wait out before that storming periods get over..

[eskip]

Now a days technical analysis method is dominant method for trading in forex market. most new trader like to forecast market with this method cause this method is one kind of digital method and provide effective information or news of market.

[Bhavik Patel]

Technical analysis is one of two methods to know the optimum time to buy and sell: Technical and Fundamental Analysis.
We can use technical analysis to predict the direction of the price using the the price chart analysis and also with the help of some special tools that are called Indicators.

[jeetu]

I think Technical Analysis are very powerful because it contains all the indicators, for a Good Trade its always suggested to look for the Fundamentals News also, if you can mix it well and make good judgement you can get into many winning trades.

[zulqurnaine]

All the three kinds of analysis are important because these all deternine trend of the market. A trend of the market will help the trader to decide for posting right trade. A right trade gives more postive chance to earn money.

[got2luvyou25]

As... we know Analysis in Forex trading consisting ...of 3 kinds of analysis, All I know is This 3 kinds of analysis.. relate to each other, but, which one You prefer??? or maybe you use All of them ?...

hum aik time pe r her terhan k analysis ko use nahi ker sektey ye aik fact ha because ager hum seb analysis ko aik stah ye aik he time per use karne ahchaye geen to very posisble ha k hum confused ho jaeen or loss ker batheen