Fusion of TA and FA

When I first started trading, I started by only looking at price charts and price patterns.  This is called technical analysis (TA).  As I began to trade more, I began to study of what moves these charts.  This study is called fundamental analysis (FA).

Most people ask me: Why take the time to look at fundamentals?  Why should fundamentals matter if a trade is done off a short term interval such as a 5 min chart?

I agree that it is definitely possible to make money using pure technicals. However, by combining TA and FA, I increase the chance of a higher probability trade.  By separating the fundamentals from technicals, the analysis of the financial markets is distorted.  Financial markets is by nature both fundamental and technical, which is reflected by the increased globalization of the world's economy.

The challenge for everyone is to find the "right" combination of tools that can assist you to find high probability trades.  The first step to this challenge is to understand what drives the stock, commodity, forex, and bond markets.  Understand the factors that drives the shifts in the sentiments of the buyers and sellers.  The second step is to derive trading rules that takes advantage the price reactions.

Ultimately, for me, the "best strategy" is the one that is well researched  and carefully supported by fundamental analysis, with well-timed proper entry and exits as determined by technical analysis.