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Linkage Between Technical and Fundamental Analysis

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To become a master forex, you need to know how to effectively use both types of analysis. Let’s look at an illustration that shows how focusing on just one type of analysis could turn into a disaster.


* Let us say that one time you look at your charts (technical) and you find an opportunity that very good trading opportunities. With a fiery passion you once had a dream that money will fall like rain from the sky. You think, wow I’ve never seen an opportunity like this sweet (I love my chart).

* Then with full confidence you immediately proceed to enter orders to broker transactions. With a big smile, eagerly await your reply as though profits have been in plain sight.

* After a few moments, and the order has been opened, you know …. price movements into the opposite direction and move to another, you see a loss of 40 pips. Apparently if you know, just no interest at the rate of decline in the currency you who are holding, so the value of those currencies weaken, and now everyone in the market moves to remove the currency (against all your graphic analysis).




Maybe you think that the illustration above is too over or dramatized. Yes. possible, but at least you can get the purpose of illustration. Moreover such as we now return to your question. ‘Can you guarantee if this does not happen? ”

Back to the illustration above, so now your dream seemed in vain, beautiful dream you are damaged by lightning in broad daylight, worse you feel that the charts / analysis of your field who are seen as waste only (buang2 time and the mind / brain). But if you are more wise not to ignore the fundamental factors, perhaps the above need not occur.
Forex is like a big ball of energy moving and flowing, the ball there is a balance between fundamental and technical factors that play a role in determining where he will move, where the direction of the market. No reply can be the dominant element of control to 100%, be it fundamental or technical, even the forex market was not separated from the natural law.


Remember how will the presence of the mother and father against son. Mother gave Dad gives sensitivity is rationality. The best results for children remains the synergy of both.

In learning forex analysis, the same applies when deciding the type of analysis to be used. Do not rely on just one. Instead, you must learn to balance the use of each of them, because that’s going to make you really can get the most from your trading.

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