TechnicalAnalysis_Tickeron

Experienced forex traders know that incorporating both fundamental and technical analysis into their decision-making processes is crucial for achieving long-term success in trading. So, to answer your question straightforwardly, not only that you CAN use both types of analysis, but it is highly RECOMMENDED to combine technical and fundamental analysis before executing a trade.

Whether you lean more toward technical analysis or fundamental analysis depends on your skills, confidence in conducting analysis, level of experience, and ultimately, your trading style and strategy. Finding the right balance is something that develops over time with practice and learning. Let's break it down.

Scalpers are ultra-short-term traders who place dozens—or even hundreds—of trades within a single day, sometimes holding positions for mere seconds or minutes. Due to the fast-paced nature of this strategy, scalpers heavily rely on technical analysis. Their decisions are based on indicators like moving averages, RSI, MACD, and chart patterns.

Why? Because fundamental factors (like interest rate decisions or GDP reports) don’t usually affect minute-to-minute price action. However, scalpers still need to be aware of the economic calendar—big news releases can trigger high volatility, which could either hurt or help their trades. Avoiding news times is often part of a scalper's strategy, especially when technical setups become unreliable during erratic market moves.

Day traders also execute trades within the same day, but they hold positions longer than scalpers—often for a few hours. They use technical analysis as a primary tool to time their entries and exits, using things like support/resistance zones, trendlines, and chart patterns.

However, they also pay closer attention to intraday fundamental events, such as central bank speeches, employment reports, inflation data, and geopolitical news that can cause strong market reactions within hours. In fact, some day traders specifically trade the news, meaning they prepare technical setups around the time major events are scheduled to happen.

Swing traders hold positions for several days to weeks. Because of the longer timeframe, they tend to integrate both fundamental and technical analysis more equally. They may identify a fundamentally strong currency based on interest rate expectations, inflation outlooks, or macroeconomic trends. Then, they use technical analysis to determine the best entry point, stop-loss, and take-profit levels based on patterns or indicators.

So, should you use both? Absolutely!

Relying only on one type of analysis might give you a narrow view of the market. Technical analysis helps you time the market and understand price behaviour, while fundamental analysis explains why the market is moving in a certain direction. Together, they form a complete picture.

If you're new to forex, don’t stress about mastering both immediately. Start with one—most beginners prefer technical analysis because it’s more visual and easier to grasp at first. Then gradually expand your understanding of fundamentals as you grow confident.

The best way to find your personal blend of both analysis types is through hands-on practice. Use a demo trading account to test how news releases impact your charts, how technical setups react during volatility, or how macro trends shape longer-term price movements.

A broker like T4Trade makes it easy to experiment. With access to the MetaTrader 4 platform, you can study charts, apply indicators, and trade on real-time market data without risking real capital. Plus, you’ll have access to a rich collection of educational resources, including webinars, tutorials, and expert analysis to sharpen both your technical and fundamental skills.

All trading involves risk. It is possible to lose all your capital.
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