Yeah bro, I’m also badly affected by major news events in the past, now I’m avoiding trading within 3 days range of news date.
I agree that it’s difficult for some of us to understand how news affects a particular currency. Along with some of the other suggestions here, is forexfactory.com While I’m still getting better at using it, you could try it.
Basically there’s a ‘flag’ system. If you click on the calendar tab on the top. Red flag, high impact news so don’t trade pairs on that day, affected by that currencies news (until you know how to), amber and yellow trade with your normal risk management.
You can also ‘open’ the flag to get an explanation of the news and the affect on the currency.
This is a very basic guide.
I hope that helps.
Fundamental analysis is all about picking news that’s CRYSTAL clear and shows the strength or weakness of a currency without any doubt. Once you’ve found those signals, the next move is to pair up a strong currency with a weak one, which creates a forex currency pair.
After establishing the currency pair, the trader can then form a preconceived directional bias or view based on their analysis of the market. This bias may be bullish, indicating an expectation that the currency pair will increase in value, or bearish, indicating an expectation that the currency pair will decrease in value.
When big news or economic data hits, it can cause a sudden price movement, which can make traders adjust their positions. This can lead to a technical pullback, which is just a fancy way of saying the price is correcting itself, even if the overall trend is still going in the same direction.
Thanks to ChatGPT, it’s super easy to analyze news articles these days. All you need to do is copy and paste the article you want to look at, and ChatGPT will summarize it for you. No more wasting hours reading long articles when you can get the gist of it in just a few seconds!
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No!!!, i forgot about it, i didn’t think the use of chatgpt in that now I’ll try chatgpt, thanks bro
Here’s what i get when i copy and paste
Forex Major Currencies Outlook (Mar 27 – Mar 31)
by
Daily Market Outlook by Kate Curtis from Trader’s Way - Commercial Content / Analysts - BabyPips.com Forum
Before i copy & paste the entire outlook, i type this
“summarize and rank them in order of their currency strength”
The following is what i get from chatgpt 4
Here is a summary of the major currencies and their strength ranking based on the given Forex outlook:
- USD:
- Fed announced improvements in USD funding abroad.
- Another 25bp rate hike, lifting the rate to 4.75-5% range.
- Inflation is too high, and the Fed has tools to deal with the issue.
- Probability of no change in May at 85%, and a 25bp hike at 15%.
- EUR:
- ZEW survey showed declines in current conditions and outlook for Germany and the Eurozone.
- Preliminary March PMI data showed further declines in the manufacturing sector.
- Inflationary pressures continue to moderate.
- Upcoming: Preliminary March inflation data.
- GBP:
- Inflation accelerated in February, remaining in double digits at 10.4% y/y.
- BOE hiked interest rate by 25bp to 4.25%.
- Consumption data improved, but preliminary PMI data showed slowdown across the economy.
- Market pricing a 50/50 chance of another 25bp rate hike in May.
- AUD:
- RBA may pause rate hikes in April to reassess the economic outlook.
- Markets pricing out further rate hikes and pricing in a pause.
- NZD:
- Westpac quarterly consumer confidence improved in Q1.
- RBNZ speakers intend to fight against inflation.
- CAD:
- February inflation report saw a more significant fall than expected.
- BOC halted rate hiking cycle, and a rate cut may be more likely.
- JPY:
- February inflation data slowed down, but ex fresh food and energy reached a 40-year high.
- Preliminary March PMI data showed continued improvement.
- CHF:
- UBS purchased distressed Credit Suisse bank, bringing some peace to financial markets.
- SNB delivered a 50bp rate hike, lifting the rate to 1.5%.
Currency strength ranking:
- USD
- GBP
- EUR
- NZD
- AUD
- CAD
- CHF
- JPY
Based on the fundamental outlook, I conclude that it is best to go LONG on USD/JPY.
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That a lot of information, I think the only way to understand these things and to do that Analysis is experience
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Hi mate. Have a look at trading180 on Yt. All free, best thing ever, you’ll thank me later.
It’s really tough to guess the exact economic condition because every single time an economic event takes place in any part of the world, affecting the entire economy. What expert economists can do is they can predict the average market condition.
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Yeah mate, I looked into it, I’m just trying to figure out different ways, including this to analyze news events.
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Dear alphahavoc,
I would like to thank you for your fundamental analysis and want to use it,could you please tell me the Chatgpt you use,as the one I have tried couldn’t work for me? thank you so much in advance for your help.
" https://chat.openai.com/auth/login "
I have subscribed for a ChatGPT+ account, and I noticed that the AI is more advanced and can INTERPRET our language with greater accuracy.
For fundamental analysis,
i’m using the following sources
" Daily Market Outlook by Kate Curtis from Trader's Way - #1360 by katetrades "
Here’s what you can do:
-
Copy and paste the chunk of information you want to summarize or digest into the chat window.
-
Use a prompt like this: “Please summarize or digest the information I provided and rank them from strongest to weakest.”
-
Wait for the ChatGPT to process the prompt and provide a summary or digest of the information you provided.
-
Review the output provided by the ChatGPT and evaluate whether it meets your expectations and requirements.
-
If necessary, you can adjust the prompt or ask for further clarifications to refine the summary or digest of the information.
Post script :
Sometimes, fundamental gurus can be overly zealous and their fundamental analysis can be quite lengthy. In such cases, you may need to use ChatGPT to summarize their ideas into bullet points, chunk by chunk. Once you have all the bullet points, you can copy and paste them into the ChatGPT prompt again and ask it to rank them in order of strength, from strongest to weakest.
Thanks to ChatGPT, anyone can now digest fundamental analysis at lightning speed. If there’s anything that’s not clear, simply ask ChatGPT to explain it. This marks a new era of enlightenment!
Post credit 2
Also, remember to use currency strength ranking by fundamental analysis in conjunction with currency strength ranking by technical OHLC data. This ensures that the rankings match each other. The ranking is solely for the purpose of pairing a strong currency with a weak currency for trading. Based on your personal preference, choose a time frame for price chart analysis to determine timely entry with stop loss and targets.
I think trading on fundamentals alone is a devil’s erand and much more painful and difficult then simple price action trading
You can avoid high impact news but you can trade low and medium impact news because I think it won’t be risky for you.
Thank you so much for your help.I will try them .
There’s a calendar here as well. With impact ratings and currency filters.
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hi alphahavoc;
Hope you doing well, as I think you are the right person to get valuable information on FX,could you please shade on some lights on indicators you use either from trading view or meta traders ( free or purchased)? Thank you
momentics.tpl (18.0 KB)
MomenticsAdvanced.ex4 (48.0 KB)
Magenta pink indicates a bearish trend, while cyan blue indicates a bullish trend. The stars indicate the strength of the bearish or bullish momentum. To use, place the ‘momentics.tpl’ file in the Template folder and the ‘MomenticsAdvanced.ex4’ file in the Indicators folder.
To achieve success in trading, simply having the best weapon doesn’t guarantee it. You must go through challenges, fight through tough times, and learn to use the weapon skillfully by discerning and practicing. Comparing and analyzing are crucial. I can only guide you in the right direction, but it’s ultimately up to you to walk the path to success. Remember, the weapon is just a tool. There is no holy grail in trading, and the trader himself is the grail. It’s important to note that there are only strong traders and weak traders; there are no such things as good or bad indicators. Even with the best weapon, if you are weak, you will still lose the battle.
Thank you so much.
Be sure to use Momentics with different time frame analysis. Enter trades quickly on small time frames and don’t go against the trend on bigger time frames.
Then again, a 4-star signal might also indicate exhaustion, highlighting that trading is not always straightforward. It often takes years of experience for a trader to develop a clear understanding and make informed decisions.