personally i prefer to trade using technical analysis using the 4 hours and daily timeframe to trade. but from my understanding news are coming in everyday and important news event may change and affect the direction of a particular trend.
i would like to know how do you know that a trade will be heavily influence by news ahead of time without or not?
how would you know you should follow technical analysis or fundamental analysis? for instance if fundamental news is saying currency is going bullish but technical analysis indicates bearish. how would you know which direction market is likely to go?
and more importantly how to read market sentiment? alot of people kept on saying to go aginst the market sentiment.. i still dont get how that works.
If you are trading the 4 Hour and daily charts and you have a strategy/edge which has been back tested and produces wins and losses in your favor, your money management and stops are in place ,mixing fundamental news in to your trades NOW is not a good recipe.
/the best system to use is one that trades with Price Action. Technical analysis is always about the past and the info you get will be behind the move of the market. Fundamental analysis is more for economists who take the long view or traders who trade off current events and announcements.
Price Action trading takes some of its style from technical analysis and some from other information in order to predict the future moves of the market. There are plenty of articles explaining the difference if you google it. Don't take my word for it.
Technical Analyses has been my God of all trades, but if there is big Fundamental News coming out, I stay out of doing Technical Trading before it, as News do useless Technical Trading, I continue Technical one hour or less after News, and it's been the best.
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