Which is better, fundamental analysis or technical analysis?

Foreign exchange analysis can be divided into two types: fundamental analysis and technical analysis. Fundamental analysis of foreign exchange is to use economic, political and other factors in various countries to analyze the trend of the exchange rate outlook, while technical analysis of foreign exchange is to use various technical indicators to predict the fluctuations in the exchange rate outlook. So, which is better, fundamental and technical analysis of foreign exchange?

Forex fundamental and technical analysis, which is better? I believe it goes without saying that investors can also know what we are going to say. Forex trading combines fundamental and technical analysis to be the best (except for foreign exchange ultra-short-term trading).

Fundamental analysis of foreign exchange should focus on various economic indicators, asset markets, and political factors of the country. Mainly including growth rate (GDP), interest rate, inflation rate, unemployment rate, money supply, foreign exchange reserves, and productivity, etc. This data can reflect the country's economic development prospects. If the economic prospects are good, there is the potential for currency appreciation, the exchange rate has the potential to rise, that is, the demand increases, and the country's currency has the potential to rise.

Forex technical analysis is the analysis of past price data in order to determine the volatility of future prices. It includes some principles such as the movement of the price, confirmation and deviation, and support and resistance. Technical analysts or charting experts use a large number of tools that help them identify potential trades. However, remember not to analyze too much, each action leads to a reaction (although not necessarily equal or opposite, that is physics not trading). Technical analysis is a science that determines the behavior of a crowd in order to join the crowd and capitalize on its momentum. This is the phrase that people often use: "control your emotions", where it comes into play. You should be sensitive to what is going on in the market without succumbing to the mindset of the masses.

The best way to analyze foreign exchange trading is to combine fundamental analysis with technical analysis. First, use fundamental analysis to accurately judge the general trend of the exchange rate, and then use foreign exchange technical analysis to obtain the trend of the exchange rate over a certain period of time. Under normal circumstances, long-term foreign exchange trading pays more attention to fundamental analysis, short-term foreign exchange trading pays attention to foreign exchange technical analysis, and if it is a foreign exchange ultra-short-term trading, investors can directly use foreign exchange ultra-short-term trading.