How to use technical and fundamental analysis in trading?

Everyone who just enters the market will be confused by various economic data and fundamental news, and will also pay close attention to the release of various data, and then conduct transactions.

However, after a period of time, you will gradually discover that sometimes the data is released, such as the non-agricultural data, which is clearly bearish for gold, but after a slight decline in gold, it starts to rise sharply; or a war breaks out somewhere, as the saying goes, Ten thousand taels of gold", however, gold was unmoved and also fell...

You will know later that there is another saying called "buy expectations, sell facts" or "sell expectations, buy facts"! If this is the case, what is the point of our research data? Who can know when the data is good, it will rise sharply, and when will you "buy expectations, sell facts" or "sell expectations, buy facts"?

In the end, we will understand that the most important thing for us to do transactions is to study how prices fluctuate, not what causes price fluctuations. Because the price trend is the most real and real .

In the stock market, fundamental analysis still has a certain meaning. We need to study the prospects of an industry, the quality of a company, and the quality of a management team, because these factors will affect the long-term fluctuations of stock prices to some extent.

However, in the highly leveraged foreign exchange market, due to the effect of leverage, the significance of fundamental analysis is greatly reduced.

It can be said that in the high-leverage foreign exchange market, if you completely break away from fundamental analysis and only use technical analysis, you can definitely survive in this market; but if you only use basic analysis and completely break away from technical analysis, you will definitely not be able to survive in this market.

Therefore, even if economists come to make deals, generally there will be no good fruit to eat, but it is not necessarily the case when mathematicians come to make deals. Examples of this abound on Wall Street.

In fact, what we should pay attention to is - what is the key factor that determines the price trend?

This is basically money . Suppose you have trillions of dollars of funds available for trading. Although you cannot completely control the trend of the entire foreign exchange market, you can definitely control the trend of several varieties. If you want it to rise, it will rise, if you want it to fall, it will fall . This is just a hypothesis, but no one actually has such a large bankroll.

However, if the amount of funds drops by an order of magnitude, there will be a lot of them in the market. They are the so-called "main players", that is, big banks, large consortiums, and large institutions; and these main forces are the most powerful participants that directly cause price fluctuations. .

Then how can we know whether the main players are long or short?

There is no need to guess this, because you can't guess it either. However, the main players in the market participate in the transaction, no matter how they keep it secret or flicker, the funds they enter the market for transaction will inevitably leave a track on the K-line .

So what is K line?

Isn't the K-line simply recording the opening and closing prices, the highest and lowest points? Of course, these are the attributes of the K-line, but they are only superficial meanings; the deeper meaning is that the K-line is the embodiment of the comparison between long and short funds per unit time . For example, the K-line of 1H represents the comparison of the financial strength of the long and short parties participating in the market within this hour.

Just like, one of the three basic theories of technical analysis: market behavior is inclusive and digests everything .

No matter what economic data, fundamental news, or news, the funds have already entered the market and released the news, or they will enter the market at a later date, which will eventually be reflected in the price; If there is no response, no matter how you analyze the market will be, it will be in vain.

Therefore, we only need to study the technology well and build a technical trading system with positive expectations, which is the most important thing!

Of course, it wouldn't hurt to study economics after that.