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Re: Is It Safe To Trade Pure Technical Analysis Or Do You Need News Too?

Jimmy, Fri May 04, 2018 8:58 pm

You can get away with trading technicals only if you're trading higher timeframes (4 hour and above) but you absolutely need to know your fundamentals (news) to succeed on lower timeframe charts.

You've got two choices really:
  • Pure technical trading: You trade Majors and Minors, 4 hour charts and above (only). No news understanding but you're aware of what major events are coming up just to stay out or wait for that event to pass, carry on trading what your charts tell you. Big moves don't really phase you because you trade higher timeframes and only ever use smaller timeframe charts for "possible" entries.
  • Fundamentals knowledge: You trade majors, lower timeframes, you watch for high impact news events and have an understanding of where the market will go when the news is released ie. AUD interest rate goes up it's bullish for AUDUSD etc. And you wait for these events and enter accordingly. You enjoy the "larger" moves on the smaller timeframes and scalp.
If you're new, always make it your goal to at least become acquainted with how fundamentals can move markets.

A fun and easy way to learn fundamentals for new traders is by practicing with the free Forex Hero App. It'll take you through a trading school and give you real historic news scenarios with information and you answer questions on where you believe the trend is heading to unlock more levels and so forth. What's great is that it's an easy to understand app and it doesn't have popup ads or other bullshit either so it's perfect for newbies :thumbup:

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