In the trading circle, fundamental analysis and technical analysis,
are two topics that everyone cannot avoid. One focuses on the intrinsic value of the asset itself, while the other examines the long and short battles within the K-line. Many newcomers often struggle with which is more important.
Many will say that both are important and must be learned. But after doing it for a while, you will understand that this statement is actually too general. There is no absolute superiority between technical and fundamental analysis, only what fits your trading cycle.
If you are doing short-term trading, focusing on charts over three to five minutes or fifteen minutes, fundamental analysis can basically be set aside. In just a few hours, the intrinsic value of an asset will not suddenly change significantly; what influences the price is always the market sentiment, the inflow and outflow of funds, and the tug-of-war of buying and selling power.
At this time, K-lines and technical patterns are the most practical tools, helping you see the current long and short battles clearly.
However, if you are looking at a longer term and focusing on daily or weekly charts, truly making long-term layouts, then technical analysis becomes less critical. Over time, the value of an asset will change with the environment and prospects, and the price will ultimately follow the value. Moreover, the people in the market change repeatedly, and the thought processes of funds vary; the traces of past K-lines are hard to represent the current main force's ideas. $BTC
Trading is never about piling all methods together. For short-term trading, focus on using technical analysis well; for long-term trading, delve into fundamental analysis, using the right tools in the right places for a smoother path.