Fundamental Breakdown For Short term

Trading Discussion Economics
#1

Hello, i would really appreciate if anyone can clear out some… or many my confusions regarding the fundamental analysis.

So here’s the thing after identifying trends or reversal patterns with technical aspects, what fundamentals do i need to back that tech analysis to stay in trade for few days?
Lets say 1st first look out for global news for risk on/off factor
2nd i compare the gdp and interest rates of the pair i’m trading
3rd cftc?
4th stock index of pairs
5th sentiments based on news
6th bond yield?
7th Economic/business cycle?

I mean i dont want holy grail i know one can never be 100% right and never in this market but let’s say i see trend i open a position for few days but the price was actually going to the supply or demand zone to go faster on the opposite direction based on fundamental, i mean what the least one can do in this scenario to have directional bias and look for correct supply and demand zones based on fundamentals?

Thank you for your time!

#2

Hi,
My plan says I trade the daily, but for sure I keep positions open for a few days. My plan also says to ignore fundamental analysis because it is irrelevant to the timeframe at hand. Of course, this does not say to ignore news. So I do try to find out if there will be any “high impact news” that would affect any current trade and if it would I consider getting out of those trades before the news.

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#3

Thank you for response, so what is your take on swing? Like if we wanna hold for few weeks what kind of fundamental directional bias we would need assuming all high impact news are far on calendar and is risk on environment?

#4

I have no experience in trading that involves timeframes longer than a few days. If it is longer than a few days then I call that an investment, and intend to hold the instrument for long term (like holding gold for 30 years), so even then, fundamentals become irrelevant.

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#5

That is very informative thanks a bunch

#6

As for your first question cocerning the identifying trend reversal, then perhaps it doesn’t relate to any kind of fundamental analysis. It directly relates to the technical analysis, which helps you to determine whether a trend continues its direction or not. Such patterns as triangle, duoble top/bottom, bearish/bullish flags, RSI helps you to identify whether it’s a good point to enter the trade or not.
In my opinion, you have to spend plenty of time in order to learn how to determine these points, but of course it depends on your personal abilities and skills. If you can acquire this knowledge fast, then you’re lucky in these terms.