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Originally Posted by Gamma_Jammer
Have to disagree. Studying news releases and the market's reaction to them is. imho no less valid than technical analysis. The main reason people fail though, is that they expect everything to be black and white. They say 'Payrolls median 175k, actual figure 100k, therefore eur/usd MUST go up. Life just isn't that simple. But this holds true for all types of market analysis. If there was any infallible method out there everyone would pile into it until it didn't work any more.
The main thing is to try and get a handle on the human aspect of the market. But you can't do that unless you are looking at the same info as the majority of the market. And that means data releases, tech levels, positioning / 'contextual' info, the works.
GJ
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I completley agree with your view, and also with rollingstone's , I wanted to know the cause of the rally , to know what power and what kind of news has triggered the human's side of the market to act that way, I think by trying to understand and learn from these moves now, we will be a better and more successful trader in the future, 'cause people will probably act the same way the next time market news like this one goes on their news alert screens.
This is not a war between Foundamental and Technical analysts, it's just trying to get favor from both sides. I also approve tommygunn's view, yes we have to go with the trend , but catching the trend at the right time is as imoportant as going with it , each one of us knows that we can go with trend but at a wrong time , and that will just lead us to be loser and not a winner.
It's really funny the way this market moves, yes we have millions of people who can move this market by their thoughts of the happening of the future, but when I see a move like that just because of the release of PMI's data it makes me think , why the same move doesnt happen for the USD ,despite the good data and news from USA , in the previous weeks. Does the market just want to ignore the USD ? By 4xfool's idea , it's a waste of mental energy, it may be true, but trying to think of the movements that happen in the market and to find the reason behind them, we will lose something (mental energy) for a better cause (Knowledge) , and in my opinion , that's a really good use of our mental energy.
Thank you all
Soheil