Many traders suggest indicators that may help in identifying the market trend and I know it. But I saw most of the indicators work below average to let you know of the upcoming trend shift. In that regard, how can I fundamentally view the market?
Any tips?
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Off-chart indicators are not great at defining trend. Moving averages are the more common route but they’re only corroborative infomation, you would still need to look mainly at price action.
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I don’t think anything except divergence can indicate whether a trend is changing. In my opinion, MACD, RSI, and Stoch can be useful for that.
youre right. many indicators lag and don’t always catch trend shifts in time. to view the market fundamentally, focus on things like economic news, interest rates, company earnings, and global events. These give you a deeper picture of why the market might move, not just how it’s moving. It’s like understanding the story behind the price.
Yeah, indicators are cool ‘n all, but most of ’em just show you what already happened. By the time they flash a signal, the move’s halfway done. If you wanna go the fundamental route, start payin’ attention to stuff like interest rates, inflation reports, and central bank decisions, they move markets big time.
Most indicators? They lag behind price. By the time they signal a trend shift, smart money has already made their move. So, instead of relying on indicators alone, I focus on what actually drives the market—fundamentals, institutional order flow, and sentiment.
First, look at macroeconomics. Interest rates? Inflation? Employment data? These set the tone for market direction. If central banks are hiking rates, currencies strengthen; if they’re cutting, weakness follows. Bond yields tell you where the money is flowing—when the yield curve inverts, recession fears rise, and safe-haven assets gain.
Next, you’ve got to watch what the big players are doing. COT reports show how institutions are positioned. Liquidity zones? That’s where stop hunts happen before real moves begin. Smart money always needs liquidity to enter and exit positions—spotting those areas gives you an edge.
Then, there’s sentiment. When fear spikes, you’ll see it in the VIX. If options traders are loading up on puts, institutions might be hedging for a drop. Geopolitical risks? They can shift the market overnight.
So, what do I do? I build a fundamental bias first. I look for smart money behavior—liquidity grabs, structure shifts. Only then do I use indicators as confirmation, never as the main reason for a trade. That’s how you stay ahead of the curve.
Does this align with how you approach the market, or do you see it differently?
To analyze market trends, observe people’s sentiment. Monitor social media, forums, or news to understand how the general public is reacting. When everyone gets caught in the same sentiment (such as excessive optimism or panic), there is a high possibility of a trend reversal. By understanding people’s behavior, you can predict future market trends.
That’s right. They often lag behind. For me, combining fundamental news (like interest rates, economic reports, employment data) with simple price action has given me the best results.
These things are very calculative and general traders may find them difficult to understand
You can consider observation of people of some certain category through social media but as the market is too large, it’s difficult to identify the observation from broader perspective.
Your point is valid as the vast and diverse nature of the market makes it difficult to draw conclusions about broader market trends based solely on the sentiment of a specific group. However by analyzing a wider range of data across various social media platforms forums and news outlets you can gain a more comprehensive view of overall market sentiment. Additionally closely monitoring specific sectors or asset classes can help identify clearer trends in the market. Another crucial aspect is that when there is noticeable collective optimism or panic among the public within a particular timeframe it can serve as a strong signal for potential trend reversals or shifts in the market’s typical trajectory.
When it comes to fundamental analysis, the economic indicators like trade balance, central bank policies and foreign exchange reserves can offer valuable insights. These factors can help piece together the bigger picture of market trends and give a clearer understanding of what might drive future moves.
How do you find those helpful, please, @SamPaul39 ? How do they give you a clearer understanding of what might drive future moves?
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For my forex news/fundamental im using rss feeds
let me know so i can share some great rss feeds or
simply google it
Welcome to the community, I think it is your first time commenting, congrats!