Fundamental Economic Indicators - page 2
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can someone give a clear way on how to interprete and make money with fundamental analysis thanks
wow.. it confuses me.....
Fundamental analysis is not for very person looking at forex trading. it require an extended period of learning fundamental concept and their impact on forex market.
helo every body i am a novice just learning looking for entry & exit indicaters to try any advice would be helpful
Economic indicators are the real movers of the market.Central and commercial banks are the traders that buy and sell large volumes of currency based on a country's economic standings.For instance interest rates are the single biggest factor in the market.Once every two months a central bank will evaluate their current position and set their country's interest rates and announce this to the open market, this is the time when the market moves higher of drops 150+ points in one bar for it seems no reason at all.Well..the central bank just released their current interest rates or how much interest you can get annually if you buy large volumes of their money immediatly Smart money plays the interest game for example as of now AUD 3% NZD 2.5% EUR 1% GBP.50%CHF.25 USD .25% and JPY.10%.Based on this statement with my million dollars which country's money will give me the highest interest on my money..right Australian dollars...so what happens when central bank of australia announced they will move interest rates form 2.5 to 3.0 percent....a huge bar as big as the empire state building and the market moved 200pips in 5 minutes.....and where were you.......sitting there 5 minutes before they were going to announce this waiting to BUY AUD'd and SELL JPY"s...sell JPY's?..why?..now that AUD is the new desired currency JPYhas the least desired interest rates at 1.0% so even the central bank of japan says we need to buy AUD"s now and what happens to JPY....right the exact opposite of AUD there is a 200pip bar sell bar in 5 minutes....what has just happened?......the biggest single transfer of money in the market this month...billions traded in a matter of minutes. And the market continues to move higher for weeks after this news as it is truly the driving force behind our market forex. What pair will give me the most action based on the above interest rate statement.I am a deviation trader who will only trade interest rates that will give me the wildest swing up and down and I do this by taking the highest interest rate AUD and the lowest JPY so what do I trade..AUD/JPY pair this is called deviation trading.Pair's with the same of closer interest rates dont get as much movement as large devition pairs for instance if USD interest rate is .25 and CHF interest rate is .25 the pair will range up and down in a tight spiral and never break out this month..........So what will break this pair out of the tight spiral.........more news and the market is anxiously waiting this news due to be released shortly...we will say CHF employment report is bad this month(last month 2million new jobs this month 1.5 new jobs so genious thinks their is a job crisis in swiss so lets take our money out of their economy so what happens....60pip bar sell all at once....what does this mean to us traders...usd/chf just broke out of the tight spiral to a selling trend caused by economic news.....I will post more on this subject later.
Thanks Scorpion..thats a very nice thread .. I try dis ..
Has somebody a good market sentiment and market volatility indicators for Forex?
I would appreciate it.
Thanks Hermes
So do I I've used trade with Ichimoku indicator but it is for technical, I wanna to find out fundamental indicator.
Nice Informative Post!
I would divide the economic fundamental indicators in to three categories.
1) Leading Indicators
2) Lagging indicators
3) Coincident indicators
There are some indicators which indicate the change in market before market changes. They are called leading indicators. Change in manufacture's order, Interest rate, building permits, money supply, Jobless Claims, Manufacturing average weekly hours, Index to customer's expectations etc. are some of the leading indicators.
On the contrary to the leading market indicators, some indicators indicate the change in market after the market changes. They are called lagging indicators. Consumer Credit outstanding ratio, Average unemployment, Banking Prime rate charges, Change in consumer price index, Change in output labor cost, Commercial & Industrial loan out standings etc are some of the lagging economic indicators.
Some economic indicators indicates approximately at the same time when the market changes, they are just coincidental. Wage and salary disbursements, Industrial Production, Non agricultural payroll , Manufacturing and trade sale, Average manufacturing hours. etc, are the coincident indicators.
Fundamental analysis is very important to have if we wanna trade successfully because all fundamentals news which is related to forex and trading have a great impact on forex directly or indirectly. so we must be updated with it.