ok , so we can use Economic Calendars from websites like our beloved babypips.com for our short-term fundamental analysis and as far as i know economic events on calendars last from 30 min up to 2 hours right?
ok , me for example iām going to set my trading schedule like this:
4 HOURS (Open and Exit Positions) ā> 1 DAY (Main Timeframe) ā> 1 WEEK (just for glimpses)
well , as i said economic events usually last from 30min up to 2h (recording to a website i donāt remember D:) which means they are no use for me and i just got ignore them totally.
and the fundamental isnāt just about economic calendar right? so how the hell am i supposed to follow fundamentals??
What you are referring to is really just ātrading the newsā and not fundamental analysis.
Fundamental analysis is the realm of economists. It is not just going from one data release to the next. Fundamentals are concerned with government and central bank policies. This means studying policy statements setting out intentions and ambitions regarding interest rates, inflation, unemployment, public spending, taxation, industrial subsidies, import/export policies, and so on.
These policy statements declare what governments are aiming to achieve whereas the regular interim economic releases etc only measure how well or badly they are succeeding with their plans.
When you have a clear picture of government objectives then you can formulate a longer term scenario of how these are likely to affect their domestic currency vis a vis other currencies. And there you have your fundamental analysis for the medium to long term.
How you then decide where and when to enter a position, how the carry costs might affect it over time, etc is another issue! Good luck!
My suggestion is you start by just reading some financial press.
As you are trading fx you donāt need to read the corporate stuff, but as suggested by another follow interest rate news and fiscal news.
Approach it in a light hearted manner for now - just get familiar with the general themes in play.
Once you aware of all that only then decide to go granular.
https://www.global-rates.com/en/economic-indicators/inflation/consumer-prices/cpi/cpi.aspx
Lots of useful information can be gleened from the site linked aboveā¦
Never trade the News, all price movement is factored in well before you will be aware of itā¦
Below is just ONE example of how the Market Makers front run the price prior to News Releases.
āThe first rule of every game is to know youāre actually in oneā Sandy Lerner, Cisco Systems.
While I generally agree about not trading the news, on a daily timeframe if you get a price action setup on the day of a central bank meeting that trade often has legs.
Price tends to become less volatile a day or two before an announcement particularly if a change in policy is expected.
One pretty good approach is to wait for the market to go in one direction, this is often a fake out and the market reverses in a strong new trend.
Again this works out much better on daily charts, there is too much whipsaw on small timeframes.
One quote from that site:
āEconomic indicators (key indicators) are very important when assessing historic, current and future economic developments.ā
In other words, the economic indicators are not the fundamental analysis itself, they are the meters that measure the progress of that analysis.
I guess, in a way, one could say that economic releases are the TA of the fundamental trading approach.
Try to stay updated with the financial news and work on your fundamental analysis. You can practice before going live too.