Conclusion

There is only one conclusion to be drawn after such an analysis we’ve made under this chapter and it calls for using both technical and fundamental analysis together as one without the other simply results in an incomplete analysis.

While technical analysis offers you the advantage of having the time to look for the proper setup and identify the risk reward ratio that represents the type of trader you are, fundamental analysis offers you the possibility to have the bigger picture in mind, to compare things on the macroeconomic scale, looking at different economies and comparing them from different perspectives:

unemployment rate, level of inflation, gdp (gross domestic product), etc. Having the bigger picture in mind allows one to look for technical setups on the higher time frames and I am referring here to the weekly and monthly charts, charts that are not tradeble on the day to day basis, but they are charts that can offer important clues, like main supports and resistance areas.

In conclusion, a proper analysis of any financial product is the one that is done on multiple time frames, taking into consideration the long, medium, and short term horizon and deals with all the potential fundamental factors that can influence the product that is traded: currency pair, stock, indices, etc.

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