Is Fundamental Analysis Overrated in Forex?
I’ve been thinking about this a lot…
When it comes to forex, traders seem split into two camps:
1️⃣ The “technicals are everything” crowd → They believe the chart already reflects all fundamentals, so why waste time reading news reports?
2️⃣ The “fundamentals move the market” crowd → They argue that interest rates, inflation, and central banks ultimately drive long-term price direction.
But here’s the real question: How much weight should we actually give to fundamentals as traders?
For example:
Some traders don’t care about CPI or NFP at all, they just trade price action.
Others won’t enter a trade unless they know what the Fed is doing next.
And then there are hybrid traders who use fundamentals for direction, and technicals for entry/exit.
Personally, I think fundamentals matter, but only if you know how to interpret them properly. Otherwise, they just add noise and confusion.
👉 What do you think?
Do you rely more on technicals, fundamentals, or a mix of both?
Which one has made the biggest difference in your consistency?
For me, I like to combine both — I track the big news drivers but time my trades technically.
(Just my opinion) I think fundamentals matter a lot... Yes technicals can reflect fundamentals, but only on Daily and Weekly timeframe. If we talk about serious traders and investors who can move forex market ( no retails can do that at all ) we will see they all use fundamentals for trade ideas and technicals for entries, trade management. Also quantative analisis is usefull but you need programms to study this type of analisys.
For me, every person who trade without fundamentals are trading blindly... Fundamentals reflect value of an asset ( of course it depends how you interpret them ) technicals reflect price, but price can be wrong... dont want to talk about patterns... fish and birds also have patterns but it doesnt mean anything at all ahahah. Fundamentals are just pieces of info that give you more probablity to make it in trading but to be honest... it depends on you how good you are at trading... If we read Market Wizzards book we can see that everyone use fundamental analisys...
best case scenario is 70% fundamentals and 30% technicals...
Never saw good TA trader 🤡
