Is fundamental analysis less important than technical analysis in forex?

[pipeguy]

I don't think TA should be used to predict what prices will do, its a business planning tool so it is really for predicting what the trader will do. Nor should TA be burdened with having to identify the causes for why price did this or that: charts don't make prices move, they just display the movement.

But just because you can't (or shouldn't) use a screwdriver to hammer in a nail doesn't make it a useless tool.

Knowing that it was the Brexit result that caused the GBP price moves that followed did not affect how I traded them. Not knowing would have had no impact either.

Lots of traders burned their fingers trying to employ technical setups for trading on Pound when the information hit the market about UK referendum outcome. It all comes to results measured in profit and if TA have tools to keep event risk under control then it's great. But I couldn't actually find any tools for that.

 

[tomorton]

Lots of traders burned their fingers trying to employ technical setups for trading on Pound when the information hit the market about UK referendum outcome. It all comes to results measured in profit and if TA have tools to keep event risk under control then it's great. But I couldn't actually find any tools for that.

Brexit was a once in a lifetime event. Probably the riskiest time to be trading GBP for any reasons, technical or fundamental.

 

[peter_pan]

Pure TA didn't work for me. Combo of fundamental strategy + TA for timing is better.

None of the two can be said to be more useful than the other. Its better to use a combination of both rather than a single strategy. Both the methods are used for researching and forecasting the prices of stocks.

 

[pipeguy]

None of the two can be said to be more useful than the other. Its better to use a combination of both rather than a single strategy. Both the methods are used for researching and forecasting the prices of stocks.

What is your primary type of analysis and what is complementary? Can't decide for myself which one I should use as a main tool, because both works

 

[Ironman777]

Forex is very difficult to analyze using fundamental analysis compared to stocks. There are too many movable parts in a country's economy. For companies, financial statements are much easier to analyze and the data collected is probably more accurate.

Since fundamental analysis is near-impossible, should focus be placed mostly on technical analysis for forex?

I have negligible experience in forex. Just sharing my thoughts.

Do institutional forex traders use primarily fundamental or technical analysis?

This is exactly what I want to say!

 

[Aaronpp]

Both are important to invest in the market, the technical analysis is daily and in this way you will be able to know the fluctuations of the market to carry out your investments and the fundamental analysis is in the long term and if the technical analysis comes to change unexpectedly you must update the fundamental but the important thing is that you use both so that your movements can be more effective and obviously your profits are greater.