Making better forex trading decisions
Many forex traders divide themselves into camps: Fundamental analysis and technical analysis. Fundamental analysis looks at the "big picture" factors that influence a currency’s direction. Technical analysis is about watching the charts and making forex trading decisions based on price action.
However, it is not necessary to pick one type of analysis over the other. You can actually practice both. Sean Hyman offers this in an interview with The Forex Blog:
You see, fundamentals tell you what is best to trade, but not when. Technicals tell you when to trade but not what’s actually the “best” currency to trade. Therefore, I use the fundamentals to pair up the strongest currencies with the weakest currencies and look to buy those pairs upon technical entry signals. So I feel that one doesn’t have to be in “one camp or the other”. Both can compliment each other.
It’s an interesting way of doing things, and one that can yield better forex trading decisions and results.
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