Hi everyone how are you
Can you help me how to combine fundamental and price action analysis to get better trades in 1 hour timeframe
This is tricky. Fundamentals drive the currency exchange rates that we trade off. But fundamentals have time-frames of months rather than hours or days, except when some important news event or announcement takes place such as international military incidents or an interest rate change or NFPR’s.
Most traders will try to ensure their intra-day trades are in line with the daily chart trend (if there is a clear D1 trend). Going against a long-term trend for a short-term trade is not crazy, but you might need to adjust stop-loss placing and position size to avoid too many serious losses.
Does your strategy really demand a match-up between PA and FA like you mention?
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Experience is key. Which means moving to higher time frames for more selection accuracy whether you’re trend following (best) or using breakout signals (useful and good probability of profits).
I used to wonder why institutional traders used the 200 SMA - it’s because their positions are mainly dependent on long term trends. To go against it is for gamblers (who don’t know what they’re doing) and top pros (who do).
As a tip, include PSAR balls on your charts with a setting of 0.09 - 0.4. And then on MT4/5 click the Zoom out button a couple of times when you’ll SEE the candle trend, and with the PSAR balls you can also SEE where to draw horizontal trend lines at key support and resistance zones.
This set up with MACD histogram - setting 3 -10-16 - confirmation trend strength signal, gives you an edge.
Best of luck.
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- Use the financial ratios for Initial Screening.
- Step 2: Understand the company.
- Step 3: Study the financial results of the company.
- Step 4: Check the Debt and Red Flags.
- Find the company’s competitors.
- Step 6: Analyze future prospects.
Ok Now How exactly do you apply that Stock method to Forex ?
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What problem did you encounter that you need help? Or are you looking for complete guide or details instructions. I don’t want to disappoint you, but your efforts to find them will likely be wane.
You are thinking exactly like the market - everything in the market happens on real time.
Many times you will encounter advice to trade only in the longer time frame - but think about that - every trade starts off in the short term, after 1 hour and it’s going against you due to market sentiment then it’s a 1 hour loser, next hour and the sentiment remains then it’s a 2 hour loser and so on.
Learn FA from a risk pov - and the easier risk teacher is US stocks , FX is part of the equation.
Next week the US Fed publish - Central Bankers are key to FA - so maybe they suggest an increase or possible increase to interest rates up ahead (cpi was a miss so good chance they will stall) - if US rates go up then stocks will decline (all business borrows so increased costs) but on the other hand investors will buy USD for better rates.
All sounds complicated but it’s really not, just takes a little time - but you are on the right track.
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Simply put, you need to have an idea about the fundamentals. Once the fundamental effect is over, then you have to take part in trading by applying price action.
according to my trading experience sometimes i feel the analysis we use when trading fundamental or technical , it works for a temporary session , there is nothing permanent something at all.