How does the impact of economic events of world currencies:
Received when I asked several traders about their thoughts on the use of fundamental analysis as part of their business decisions, and two opposite responses.
A response from the merchant
The basic principles that you have read about are typically useless, because the market price has been reduced already. I am trying to (1) long-term trend, (2) the pattern of the current scheme and (3) determine a good entry point to buy or sell.
Trader B response
I almost always the point of view of the commercial market. I simply do not trade in information technology alone. I use technical analysis and it's great, but I can not open or holding what I did not understand why they should move in the market.
There are a lot of hype attached to technical analysis by some technicians who claim that he expected in the future.
Technical analysis follows the past, it does not predict the future. You must use your wits to draw conclusions about what the last activity of some traders are saying about this activity in the future from other traders.
For me, and technical analysis is like a thermometer.
Fundamentalists, who say they will not pay attention to the cards is like a doctor who says he will not take the temperature of the patient. If you want to be a successful trader in the market, you always want to know where the market is up -. Downward trend or jerky you want to know everything you can in the market to give you an advantage.
Technical analysis reflects the vote of the entire market, and therefore, pick up unusual behavior. By definition, anything that creates a new table model is something unusual.
It is very important to study the details of the work to see the price and commitment. Study of maps is absolutely crucial, and alerts the imbalance and possible changes.
Currency traders and the fundamentals are all that makes the country tick.
Publish economic indicators, inflation (ie, consumer spending, the index of labor cost, and government spending, and the index of producer prices, etc.), and political actors, and that government policy can be a particular event or bring them to market in the frenzy. Must be considered when making this decision "to trade or non-commercial."
Technical analysis is a way to use historical data for prices of different ways to predict the future price of a currency pair.
Fundamental analysis is a very effective way to forecast economic conditions, market prices, but not necessarily accurate, and you must trade in accordance with the technical indicators to support.
Traders put more emphasis on technical analysis, because the traders all over the world use graphs and similar tools for predicting market trends.
Why the foreign exchange market can be unpredictable at times, is that if the majority use the same chart to identify patterns and trends, it is likely that they will behave in a similar way.
So many thousands of merchants who set both the same line of resistance, for example, and probably either set their trades and the direction consistent with this line.
When the underlying data available to the public there is a reaction from investors and speculators.
Information in the form of indicators of economic news and more ambiguous than that of technical indicators. There are a lot of gray area in this type of analysis. And the market eventually respond to how people think about the economic data compared with the current state of the market.
Economic indicators reveal information which is usually "would cause a currency to rise in the price" or "may cause the currency to go down." The words "should" and "May" in the quote above reveals ambiguity grounds.
Here is an example of what it's like fundamental analysis. Suppose that there are six economic indicators (there are a lot).
Let's call our indicators 61.2, 3, 4.5 and 6. Now we are waiting for data indicators to be published in our magazine or a financial source on the Internet. We get the readings from our data on the economic of the euro as follows:
Indicator 1: It is in a range where the euro is due
Indicator 2: is in the range of where the euro is expected to rise
Indicator 3: is in the range where the Euro could fall
Index (4): is in the range where the Euro usually goes down
Index (5): That was within the scope of the euro, which could rise
Index (6): is in the range where the Euro could fall
Monitoring indicators mentioned above, you do not know what the euro will be. In addition, currency trading is always in pairs. Thus you will have to obtain basic data for the last pair of currencies and compared with the euro. I think you can create an image is not a simple task.
I do not want to discourage you away from the basics. The best way to learn is to identify a piece of economic data at the same time. Finally, we will build all the riddles of the basic data and techniques and make informed business decisions.
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