The Frontiers Of Trading

  by:  Ivan Cavric When I asked several traders about their thoughts about using fundamental analysis as a part of their trading decisions, I have received two opposite responses. RESPONSE of Trader A Fundamentals that you read about are typically useless as the market has already discounted the price. I am looking at:   the long term trend,   the current chart pattern and   identifying a good entry point to buy or to sell. RESPONSE of Trader B I almost always trade on a market view. I don't trade simply on technical information alone. I use technical analysis and it is terrific, but I can't initiate or hold a position unless I understand why the market should move.  There is a great deal of hype attached to technical analysis by some technicians who claim that it predicts the future. Technical analysis tracks the past; it does not predict the future. You have to use your own intelligence to draw conclusions about what the past activity of so...

by:  Ivan Cavric How to predict the future by studying the Past - Technical Analysis: The best traders don't discount one or the other but understand that having an understanding how the fundamentals influence market sentiment gives him/her an edge over those traders who don't. In my opinion, TECHNICAL analysis is the easiest and most accurate way of trading the FOREX market. "The number's don't lie" - all available information and its impact on the market, are already reflected in a currency's price. Prices move in trends - the foreign exchange market is mostly composed of trends and therefore a place where technical analysis can be very effective. History repeats itself - over time, certain chart patterns become consistent, predictable and very reliable. The question is SEEING them. PRICES MOVE IN TRENDS The traders who don't believe this obviously have no need to implement a trading methodology on technical analysis. But, research has shown t...