Article provided by readtheticker.com

Which to trade? Fundamentals or Technicals
Created on: 2/9/2021 1:39:49 PM

which-to-trade--fundamentals-or-technicalsBest to trade technical's, best to trade fundamentals, best to trade technical's, etc.


Consider Paul Tudor Jones quote below.


.."Fundamentals might be good for the first third or first 50 or 60 percent of a move, but the last third of a great bull market is typically a blow-off, whereas the mania runs wild and prices go parabolic. There is no training, classroom or otherwise, that can prepare for trading the last third of a move, whether it's the end of a bull market or the end of a bear market."...



In short, markets start with macro but in the end they are more like a ponzi. 


Which is best to trade fundamentals or technical's?


The answer is both and with different weights at different stages of the market, in the early part of the market fundamentals will have more weight, but as the market matures fundamentals must be balanced with the technical's. Because a market involves humans, and fear are greed are at work, more so when prices are extreme.



To demonstrate the above listen to this very good fundamental chat on Ethereum. 





At the 41.40 min mark Raoul Pal answers the question as to a possible price forecast of Ethereum, he says:


.."nobody can think is exponential terms, humans are incapable of this"...




So there you have it after 40 minutes fundamental chat, price is determined by humans in a free market environment of greed (demand) and fear (supply). Technical's are used to measure lows and extremes of greed and fear, just like the price channels below:



ETH





But in the end even Ponzi met reality.


..."The minute you get away from the fundamentals – whether it’s proper technique, work ethic, or mental preparation – the bottom can fall out of your game"...


Basketball Legend Michael Jordan



The only thing in mania markets is a minute can be weeks, months or years.





 

Divider




Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, Cycles, Wyckoff and Ney logic is the best way to ride the change, after all these methods have been used successfully for 70+ years. This post is a delayed and small sample of what is avaliable to members. Sign up to enjoy the full service.

NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net

Investing Quote...

.."[Point and] figure charts are more valuable than vertical [bar] charts"..

Richard D Wyckoff


.."The first rule is not to lose. The second rule is not to forget the first rule"

Warren Buffett


.."When I bet big .. I have a mind to own a position for years .. Yet you must have a ruthless objectiveness and open mindedness as to when the facts change to exit the position, if so within hours or days .. I have not used a stop loss in 40 years"..

Stanley Druckenmiller


..“Investing should be like watching paint dry or watching grass grow. If you want excitement…go to Las Vegas.”...

Paul Samuelson


..“How many millionaires do you know who have become wealthy by investing in savings accounts?”..

Robert G Allen




Who is readtheticker.com: We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online stock and index charts with commentary. We are not brokers, bankers, financial planners, hedge fund traders or investment advisors, we are private investors.

RISK DISCLAIMER
The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities listed herein will remain in an account's portfolio at the time you receive this report. It should not be assumed that any of the securities holdings listed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable. In addition we do necessarily agree with or endorse any outside commentary within this newsletter. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data.This material, or any portion thereof, may not be reprinted, sold or redistributed without the written consent of readtheticker.com. If you have received this electronic transmission in error, please notify us by email via readtheticker.com 'Contcact Us' page, Thank you.

Source: https://www.readtheticker.com/Pages/Blog1.aspx?65tf=4090_which-to-trade--fundamentals-or-technicals-2021-02