Hi everyone) There are lot of factors which are influencing and driving the forex market for example different news,political situation,economic statistics etc .How traders having trading systems purely based on fundamental analysis base their trading decisions? How you people connect the dots? I am a pure price action trader who strictly follow the technical analysis.I am asking these questions because it interests me.Finally anyhere who is making money consistently using pure fundamental analysis?
Thanks.
Tahir.
I think they have a general overview of what the interest rate decisions will be and trade long term. They do not really trade intraday.
When you say ‘they’, who are you referring to?
Surely there must be some threads on fundamentals. Did your search on the forum brought you nothing, or didn’t you look for it?
yeah, i’m kinda workin hard on knowin deeply more on fundamental analysis.
But why not try to mix it together??
Fundamental analysis + Technical analysis = ???
Example:
- Fundamental analysis for determining trend direction.
- Technical analysis for determine and calculating right SL and proper target.
Will be amazing analysis ^___^
I use fundamental analysis for Bias and pair selection.
Currency pairs are a difference between two forces, two currencies. With fundamental analysis your job is to study economics to understand what are the most probable scenarios in terms of economic evolution for each currency in the future timeframe you work with.
Whether to use fundamental analysis (FA) or technical analysis (TA) is a matter of choice. I know both groups of traders who are profitable using purely FA or TA.
However, most traders use a combination of FA and TA. Personally, I use FA to assess market conditions and derive a directional bias for certain currency pairs. Then I will use TA on the pairs to determine my entry and exit. I usually trade on the side of momentum. I use Stochastic to guide me on when to enter the trend with the prospect of the trend continuation.
FA is for mid- and longterm(1 week-few months). TA is for intraday and scalping. Also FA is good helper even n intraday, it shows whether it’s time to use TA or better to stand aside of trade
No. Just no. An industry/productivity report or major announcement today will potentially have an impact today. I personally tend more to agree with Spidypips and Walter80 but again this is just preference, a good mix of both has been good for me.