How do we use fundamental analysis in a trade is what I’m struggling with. And how do I know if I should buy or sell using fundamental analysis after spotting a pattern. My problem is using the patterns with some fundamental analysis for a better trading opportunity.
For example USA and China war. What makes the market go bull or bear.
I hope I’m clear enough. Thank you in advance
fundamental analysis is really important for successful trading above all for news trading. but to acquire real Fundamental is a tough game.
There’s always more than one way of achieving something.
Analysing and reacting to FA on news item by news item is not at all a widely recognised means for private retail forex traders to make better profits. It is much more pragmatic to follow price.
You can follow price on a given pair. But you should also take account of what that currency is doing against the other 7 significant currencies and form an overall picture. For example, you would need very strong reasons to go long on an AUD-based pair when the other 6 AUD-based charts are bearish.
To be able to perform fundamental analysis, you need to know a lot to see the whole picture. In other words, you need to figure out both well-known and hidden connections and factors impacting the prices. For sure, all this is quite difficult, especially for the amateur traders having to relevant education or background in finance. At the same time, it is quite easy to find any information needed due to the huge number of free and paid sources like advanced newsfeeds. That is why even newbie trader could find his own approach to fundamental analysis. It is very important since technical analysis mostly deals with tactical issues while fundamental analysis is necessary to understand the situation in general to be able to make decisions leading to the profitable trades.
but beginners level always try to skip this approach , because it more complicated and informative than technical analysis.
yes , they skip but its the real base in Forex knowledge and experience.