SPX 500, Daily
Formación

Forecasting Horizon: Which Approach Works Best?

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There are 3 main approaches to market analysis and each works best on a specific timeframe

1️⃣ Fundamental analysis
Everything not related to past price action.
Even assets with little to no intrinsic value(like altcoins) can still be analyzed using:
• macro trends
• news
• ecosystem developments

2️⃣ Charting(price action / patterns)
Drawing levels, trends, structures and trying to anticipate how other traders react

3️⃣ Indicators
Using technical tools and algorithms to track momentum, trends, and signals

“Which one is better?” Is the wrong question. The answer depends on the timeframe and combining approaches often works better than using just one

⏱️ Time horizons

There are no strict definitions, but roughly:
• Long-term → 1+ year
• Mid-term → 1–6 months
• Short-term → 1 week–1 month
• Intraday → hours
• High-frequency → minutes/seconds

Which approach fits where? ✍️
• Fundamental → best for long-term
• Charting → best for mid-term
• Indicators → best for short-term & intraday

Using the wrong tool = bad decisions
Example: Fundamental analysis for 1-hour trades are useless

🧑‍💻 My approach

I mainly use Fundamental analysis and Technical analysis with a focus on the mid-term horizon. At the same time, i build different portfolios depending on the timeframe/

There’s no universal strategy and each timeframe requires its own approach.
Understand the horizon — then choose your tools

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