From Thu_Jan_02
EUR/AUD BUY at 1.5325
S/L activated (-60)
January (+/-): -60 (nice start of the year 
)
Last five days changes in the index:
usd=0.224
eur=0.726
gbp=-0.977
jpy=0.000
aud=-0.393
chf=-0.336
cad=0.000
Last five days on chart the highest growth: EUR, and the biggest drop: GBP.
EUR/GBP
pending order BUY STOP at 0.8297
S/L 31
T/P 40
I tried to give explanations in posts #1, #12, and #31. My knowledge of English is limited and I can not give a better explanation.
Last day changes in the index:
usd=0.202
eur=0.234
gbp=0.000
jpy=-0.147
aud=0.442
chf=0.449
cad=-1.884
From Sun_Jan_05
EUR/GBP BUY at 0.8297
now 0.8295 (-2)
Svim vernicima koji na danaĹĄnji dan slave BoĹžiÄ Ĺželim da poruÄim:
MIR BOŽIJI, HRISTOS SE RODI!
PUNO ZDRAVLJA, SREÄE I LJUBAVI!
Last week changes in the index:
usd=0.381
eur=0.890
gbp=-1.047
jpy=-0.343
aud=0.638
chf=-0.561
cad=-5.181
From Sun_Jan_05
EUR/GBP BUY at 0.8297
S/L activated (-31)
January (+/-): -91
Iâm a little bit confused on what youâre doing here. It looks like youâre trying to judge a currencyâs âtrueâ strength based on the relative economic data? As far as I can tell, though, it still looks like technical analysis at its nature, just using numbers/data other than purely price. The idea is youâre still looking back at specific data points, compiling them, then charting them to try and make assumptions for your trading.
When thinking of fundamental analysis, I like seeing stuff more like this kind of analysis and especially stuff like this where banks really delve deep into their economic models and future projections.
Now, Iâm not saying that what youâre doing isnât helpful, by any means. This could give you a nice edge if it helps summarize the economic performance from those regions properly or whatnot (again, I might be confused on what youâre doing here). However, when looking at fundamental analysis, the mindset shifts further away from simply prior data points being charted (and then extrapolated to likely future outcomes) and more so looks at the underlying âvalueâ of an asset compared to current pricing.
A lot of it is forward-looking, as in âThe current value is much higher than the current price, so itâs worth buying now because future developments are likely to help price catch up to current value.â Itâs more based on the slightly abstract idea of something have a hidden value compared to what the market says itâs worth. Fundamental analysis in stocks, for instance, might be because they feel the companyâs ability to grow is being seriously underestimated and so itâs currently trading at a âdiscountâ, and so the idea is to take a long position on that.
In currencies, one might feel that the euro is over-valued, for instance, given the economic strife in the area and underlying issues that still remain but people overlooking right now. This is an opportunity to go short, with the idea that the pricing will eventually reflect the true, underlying value of a currency that has weak fundamentals. (this is just an example btw, not saying thatâs actually the case right now)
In a similar vein, very news-heavy âfundamental analysisâ is still forward-looking. The point is to try and use whatever proprietary method to figure out what the upcoming data print is likely to be, and if there are opportunities to position yourself beforehand, you do.
So, you might gather all of the previous jobs reports over the past few months, then look back at prior yearâs NFPs for the same month thatâs going to be released, factor in the existing over-arching economic conditions during those times, then survey major hiring managers at large companies to get a feel for what they think employment was like over the past month, and wrap all of that together to help predict what the upcoming NFP read is likely to be. If you then see a trade opportunity based on the current pricing and expectations, youâd position yourself beforehand.
Hopefully that helps give you an idea of what the general mentality of fundamental analysis is about and how to incorporate that knowledge with your current data model
Last two days changes in the index:
usd=0.018
eur=0.398
gbp=-0.035
jpy=0.662
aud=0.000
chf=0.000
cad=0.000
nzd=0.000
Today is charted and NZD.
As a newcomer in this matter, Iâm trying to increase my knowlage of forex market every day. One of those âattempts to understandâ whatâs happening with currencies when various events occur is the making of this chart.
The basic idea of this chart is to use indicators that are published in economical currency calendar for making a clearer picture of the state of currencies that are observed.
Why am I doing that?
The answer is simple: I understand the chart, in it I can see if the currency is getting stronger or weaker, and what effect will it have on my trade. If, for example, USD/Core Retail Sales becomes stronger in the last report I can see what kind of concequence will it have, and I can see how big of an effect it will have on the value of a dollar.
I transfer the information that I take from the economical calendar into my application that uses various conditions that I have set to calculate the value of output indexes and it adds that value to the general index of the currency that is being observed. Iâm currentlly following exactlly 305 events for eight different currencies (I added NZD into application in december) and with a certain degree of succes i know when I should enter a trade, what currency pair should I observe, how long it will last etc.
Once again, I have to mention that the effect of proccesed data is visible, but Iâm using various indicators to help me enter a trade. To me itâs important to know on which currency pair should i pay attention â WHAT SHOULD I LOOK AT.
Since this is all in a testing phase I have been using the babypips forum to share information with the other traders in order to find out if Iâm doing something usefull and if it can help everyone with their trading. The call of this thread (My Fundemental Analysis Chart) doesnât have deeply done analyses of economical state of the country to which the currency belongs, but it gives a superficial, so to say, picture of that economyâs state.
Example:
Attachment 1 shows the chart of my application so that you can see the GBP/CHF currency pair with three finished mothly periods.
Period 1:
From 01.10.2013. to 01.11.2013. my chart shows that in that period the CFH line is getting stronger and cutting the GBP line, which tells me that the GBP/CHF currency pair is going into bearish. In the 2nd attachment itâs shown that in a period from 01.10.2013. to 01.11.2013. this currency pair has really been in bearish (the green line shows âcloseâ for period, and the blue line shows the biggest drop).
Period 2:
Attachment 1 â CHF is dropping and GBP is getting stronger. Attachment 2 â Currency pair GBP/CHF is now in bullish.
Period 3:
Attachment 1 â GBP is dropping and CHF is getting stronger. Attachment 2 â Currency pair GBP/CHF is now in bearish.
âAllmostâ all currency pairs behave like that, itâs only a matter of looking at a bigger picture.
I still havenât (and donât know how to) implemented speeches of various officials into application. Basicaly, I canât know how big of an effect will a speach from any official person have on the currency of the economy that he represents. You can give me some ideas on how to calculate the index of a speech.
Best regards from Gorance.
What you are doing by trying to come up with a number to characterize the fundamental strength/weakness of a country is similar to what is being done hereâŚ
Last week (Mon_Jan_27 - Fri_Jan_31) changes in the index:
usd=1.727
eur=-0.305
gbp=-0.279
jpy=2.404
aud=-0.196
chf=1.009
cad=-0.785
nzd=-0.251
After a long break (day job is killing me) I found the time for this part of the activities âŚ
usd -2.941
eur -2.752
gbp 3.846
chf -8.824
cad 0.000
aud 2.273
jpy 0.000
nzd 0.000
