That's what they say about the fundamental analysis:How to use fundamental analysis in the forex market?
Some people think that fundamental analysis is needed to work on long-term and short-term enough and technical analysis. Then of course, looking to a long-term ... We are now here in day trading, so the short term we have - this is 15 minutes and long - several hours
We have, within days, the fundamental analysis sometimes seriously expands the market against the intention of determining the technical analysis, and this fact, some traders take into account. Here, from this point of view (sometimes not pay attention to indicators of technical analysis or wary cover pose for example) fundamental analysis may be of interest to us.
By itself, since for general information say fundamental analysis is engaged properly examine various reports of events in the world - examines the political and economic components of both individual countries and for the world community as a whole.
This is important information on the stock exchanges and large companies, interest rates, central banks, the government's economic policies, possible changes in the political life of the country, as well as all sorts of rumors and expectations, and, of course, sudden events such as floods, hurricanes, etc . e.
As with technical analysis, fundamental analysis is to treat it is very difficult, it is difficult to assessing the situation in the world. Same 50/50 - and now this fundamental analysis is not interesting. He does not lead us to develop a clear strategy. This is a minus. Just like you never know how some news may affect the currency of any country. The price may have to take to the news, but can only begin after "rally". Or maybe it all ends Fleta in a wide range of foot and collect from both sides. Many staryutsya close poses in front of important news, and trade in the quieter areas.
Also, the powerful, may be especially running fake news, that affect the market is not much, but after the arrival of real news, the market turned strong in the opposite direction. What's happening in the market? He collects the foot! And that has grown, gives profit patient-sighted participants! A reasonable question to delve into the fundamental analysis: how to skip the fake news. I believe that only through experience, as I said in the "training".
Fundamental factors are estimated, usually from two positions:
- In terms of influence on the official discount rate;
- In terms of state of the national economy.
Fundamental factors affecting the Forex Market
In general, fundamental analysis identifies four groups of factors directly influencing the market:
- Economic;
- Political;
- Rumors and expectations;
- Force majeure.
Classification of news on the extent to which they are expected:
- Random and unexpected - usually news of political and natural, less economic (political instability, war, natural disasters, etc.);
- Planned and expected - usually economic news, less political nature.
Economic group of factors and its influence on the currency markets based on the axiom that any currency is derived from the country's economic development and its value can be adjusted with the help of certain economic measures.
Economic group influences on the market can be divided into the following components:
- Data on the economic development of the country;
- Trade negotiations;
- Meetings of central banks;
- Any change in monetary policy;
- Meetings of the Group of Seven, economic or trade unions;
- Statements by Heads of central banks, heads of governments, eminent economists on the situation on the market rates, changes in economic policies, economic situation or their projections;
- Intervention;
- Neighboring markets;
- Speculation.
But like all this to understand?
And yet I need a fundamental analysis to trade in the short term?
Understand need to carefully laying out all on shelves.
And as to need or not need a fundamental analysis on the short term, here the views of traders differ immensely: some think that it is 50/50, and I personally think so too, others are closely watching the news. But what I did not ask - what exactly will happen after the news - no one said. If the flooding in England, then pound / buck falls - this is understandable. But this happens rarely. And always interesting to see fundamentalschikov disappointed when the price does not even twitched after a very significant news.
However, there is one observation. Before the important news price goes in the opposite direction, ie, pulls to the level from which to go in another direction. There is a second observation, while waiting for the momentum after the news, and then subjected to deposition in both directions.
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