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  1. #1
    Rookie Member

    The correct way of Interpretting and understanding Fundamental Analysis?? !!!

    Hi Communitraders.

    Im back with another question. The past few weeks i have been trying to understand the importance of the economic calendar along with the fundamental analysis. Lets just say it ended up with me, understanding absolutely almost nothing.
    I understand, that the analysis tells us where the Trend is ending. But how do you convert your knowledge about the currency pair from, for example, Forexfactory.com, Netdania.com or bloomberg?

    Just to take an example from Forexfactory.com: Today i've been looking at 3 USD highlights. 10.00 am Wholesale inventories, 10.30 am Crude Oil Inventories and The 2.00 pm FOMC Meeting.
    Forex factory tells us, that The Wholesale inventories will be good for the USD currency, if the actual is UNDER the forecast. But how are we going to open a trade, when the actual is not announced before the event? Is makes us blind(or at least thats how i understand it). Forex factory tells us, that the Crude Oil Inventories has no consistent effect, then how can we interpret it and use it to our advantage, and finally, open a trade because of that knowledge? again no actual.
    Forex factory tells us, that the FOMC meeting depends on how much *Hawkish* there is.

    Lets take the asset EUR/USD. How would these three highlights affect the asset if they were good for USD currency. Would it go bearish or bullish?
    Thanks for reading this post, and any kind of answer is truly very appreciated. excuse me if the thread is a little confusing.
    All the best, Mr Dicipline

  2. #2
    Master Member SeasaltMcFish's Avatar
    I usually avoid heavy news items, like FOMC meetings. Although there are good traders that can profit from it, it also confuses and makes trading harder.

    If you are not familiar with news trading, it will be better to focus on trading in the 'safe' hours first (I don't trade between -30 until +120 minutes (130 with meetings) when news is published that is expected to have a big influence in the markets.

    The news items that are important for your trading, depend strongly upon the pair(s) you are trading.
    I trade EUR/USD, so I avoid US/EU/CAD speeches and important other news events.

    About how to trade on news events, I can't help you because this avoiding.

  3. #3
    Rookie Member
    Quote Originally Posted by SeasaltMcFish View Post
    I usually avoid heavy news items, like FOMC meetings. Although there are good traders that can profit from it, it also confuses and makes trading harder.

    If you are not familiar with news trading, it will be better to focus on trading in the 'safe' hours first (I don't trade between -30 until +120 minutes (130 with meetings) when news is published that is expected to have a big influence in the markets.

    The news items that are important for your trading, depend strongly upon the pair(s) you are trading.
    I trade EUR/USD, so I avoid US/EU/CAD speeches and important other news events.

    About how to trade on news events, I can't help you because this avoiding.
    So Staying away from meetings involving the pairs currency? got it. But what kind of news would be effective for your trading than?

  4. #4
    Master Member SeasaltMcFish's Avatar
    It's very hard to say what news is effective, since I'm trading reversals mainly. Reversals happen more often when there is not much influence of news.

    Normally I will avoid important meetings like ECOFIN, FOMC, Eurogroup (I take a day off), speeches in category red/orange (USD/EUR and sometimes GBP/CAD/JPY), Job reports (USD/EUR) and Rate decisions. I also avoid trading when big other events happen, like an escalation on the Krim, a disaster etc.

    The impact of news events is different for every kind of system, so it's important to do your own research for your trading system.

  5. #5
    Administrator Martin Kay's Avatar
    Hi Mr. discipline, I moved your thread into the appropriate room. Sorry for the inconvenience.

  6. #6
    Veteran Member Optionguy's Avatar
    From my perspective I would say that Interest rate decisions (the cycle of raising or cutting interest rates) sets the tone for all financial markets. FED and other Central Banks have become like 'gods' in the area of finance and they create trends by means of manipulating interest rates. Other pieces of news usually have short term impact. I might be wrong on this, but I have watched lots of market reactions to news through the years and I see that mostly Interest Rate Decisions have long term impact. I guess more experienced traders can elaborate on that or negate that. (I am not good at fundamentals).

  7. #7
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Mr Dicipline View Post
    But how are we going to open a trade, when the actual is not announced before the event? Is makes us blind(or at least thats how i understand it).
    What do you mean? Of course the news will not be announced before the release...of the news

    ...let me know when you or someone you know invented a time machine

  8. #8
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Mr Dicipline View Post
    Is makes us blind(or at least thats how i understand it)....again no actual.
    ...simply because we dont have the .... TIME MACHINEEEE

  9. #9
    Master Member Bogdan G's Avatar
    ....For example, if good news is released for the Euro and worse than expected numbers come out for the US economy, we can expect the EUR/USD pair to go up, because now Euro is stronger than the US Dollar. And finally we get to what matters for us Binary Options traders: if we expect the underlying asset (in our example the EUR/USD currency pair) to go up...."

    [url]www.binaryoptionsthatsuck.com/the-four-fathers-of-binaries-currencies/[/url

  10. #10
    Master Member Bogdan G's Avatar
    .....Think of the two currencies in a Forex pair as two athletes on the track, both with similar capabilities: they will constantly shift places and overtake each other. Now let’s think of the EUR/USD pair: when the Euro is stronger than the US Dollar, the pair will go up and when the Dollar is stronger, the pair is going down. The balance of power between the two currencies changes constantly and that is what generates price fluctuations, trends, retracements and reversals...."

    [url]www.binaryoptionsthatsuck.com/the-four-fathers-of-binaries-currencies/[/url

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