Mixing TA with FA ? or not ?

Discussion in 'Strategy Building' started by jacksmith, Mar 16, 2009.

  1. Hi, All:

    In your trading strategies, do you think if it is good to mix TA (Technical Analysis) with FA (Fundamental Analysis) ? or these two shall not be mixed ?

    I think one assumption of TA is that all fundamental information has been included in price.

  2. Hi Jack,

    I rely on charts. Sure, you could listen to Cramer but the charts convey the collective info on the market.

    That said, it's good to know "what's goin' on."

    If conditions are generally bullish, you may look to supports @ which to buy; if conditions are generally bearish you may look to resistances @ which to sell.

    I deride oscillators & indicators, however; they're totally bunk.

    GL! :)
  3. Are oscillators & indicators part of TA ?
  4. Surdo


  5. That is what IBD O'Neil canslim method is.
  6. Yes. TA includes any indicator (possible exception of volume).
  7. FA tells why and TA tells when.

    While I don't always subscribe to that (i.e. day trading) for position trading / long-term stuff I think it makes for good common sense.
  8. lindq


    Good question, and it all depends on your strategy/system.

    As just one example, I used to regularly buy weakness in equities (which I'll return to when the market trend turns solidly positive.)

    I found my results significantly improved when I limited my watchlist to those stocks with strong earnings (EPS) and volume.
    That makes perfect sense, when you consider that investors/traders are generally going to be buying "good" companies at points of weakness, giving them good support levels and bouncing off the bottom.

    So think first about your strategy, then think how including FA in your studies might help you in building a trading list that supports that strategy.
  9. depends what ur trading i would say by viewing ta u can see fundamentals and shifts in charts.. so its not really needed tho its good to watch when in a trade so you can exit on a surprise fundamental change OR adjust your tp if it stacks in your favor
  10. Does this mean TA is for short term / high freq trading ?
    #10     Mar 22, 2009