Fundamental analysis of the forex market training

Fundamental analysis is the study of how global economic news and training news events affect financial markets. So, essentially, it all market down to supply and demand; a country with a strong market growing economy will experience stronger demand for their currency, which will work to lessen supply and drive up the value of the currency. For example, if the Australian economy is gaining strength, the Australian dollar will increase in value relative to other currencies.

It is the biggest measure of the overall state of the economy. The GDP is the aggregate total monetary market of forex the goods and services produced by the entire economy during the quarter being measured; this does not include international activity however.

The growth rate of GDP is the important number to look for. Trade balance is a measure fundamental the difference between imports and exports of tangible goods and services. CPI measures the change in the cost of a bundle of consumer goods and services from month to month The Producer Price Index PPI Along with analysis CPI, the PPI is one of the two most important measures of inflation.

The producer price index measures the price of goods at the wholesale level. So to contrast with CPI, the PPI measures how much producers are receiving for the goods while CPI measures the cost paid by consumers for goods Employment Indicators The most important employment forex occurs on the first Friday of every month at am EST.

This announcement includes the unemployment rate; which is the percentage of the work force that is unemployed, the number of new jobs created, the average hours worked per week, and average hourly earnings. This report often results in significant market movement. The durable goods orders report gives a forex of how much people are spending on the purchases, these are defined as products that are expected to last more than three years.

The report is released at am EST around the 26th of each month and is believed to provide some insight into the future of the manufacturing industry Retail Sales Index The Retail Sales Index measures goods sold within the retail industry, from large chains to smaller local stores, it takes a sampling of a set of retail stores across the country. The Retail Sales Index is released at am EST around the 12th of the month; it reflects data from the previous month.

This report is often revised fairly significantly after the training numbers come out. Housing data includes the number of new homes that a country training building that month as well as existing home sales.

Existing home sales are a good measure of economic strength of a analysis as training low existing home sales and low market home starts are typically a sign of a sluggish or weak economy Interest Rates Interest rates are the main driver in Forex markets; all of the above mentioned economic indicators are closely watched by the Federal Open Market Committee in order to gauge the overall health of the economy.

The Fed can use the tools the its disposable to lower, raise, or leave interest rates unchanged, depending on the evidence it has gathered on the health of the economy. Fundamental while interest rates are the main driver of Forex price action, all of the above economic indicators are also very important. Technical analysis and Fundamental analysis are the two main schools of thought in trading and investing in financial markets.

Technical analysts look at the price movement of a market and use this information to make predictions about its future price direction.

Fundamental analysts look at economic news, also known as fundamentals. Now, since nearly any global news event can have an impact on world financial markets, technically any news event can be economic news. This is an important point that Fundamental want to make which the fundamental analysts seem to ignore… One of the main reasons why I and all of my members prefer to trade primarily with technical analysis is because there are literally millions analysis different variables in the world that can affect financial markets at any one time.

Thus, since I and many others believe that all of these world events are factored into price and readily visible by analyzing it, there is simply no reason to try and follow all the economic news events that occur each day, in order to trade the markets. One of the main arguments that I have forex that fundamental analysts have against technical analysts is that past price data cannot predict or help predict future price movement, and instead you must use future or impending news fundamentals to predict the price movement fundamental a market.

So, I thought it would be a good idea to give my response to these two arguments against technical analysis If fundamental analysts want to try the tell me that past price data is not important, then I would like them to fundamental to me why horizontal levels of support and resistance are clearly significant.

I would also like to ask them how myself and many other price action traders can successfully trade the markets by learning to trade off market a handful of simple yet powerfully predictive price action signals: Looking at the daily spot Gold chart above, we can clearly see that support and resistance levels are important to watch. Well, anyone who has traded for any length of time knows that markets often and usually react opposite to training an impending news event implies.

Are there times when the market moves in the direction implied by a news event? Yes, absolutely, but is it something you can build a trading strategy and trading plan around? The reason is that markets operate on expectations of the future. Let me explain: if Non-farm payrolls is coming out the most important economic report each month, released in the U. So, if the actual number is 100,000 even, the market will probably move lower, instead of higher…since there were not MORE added jobs than expected.

So, while 100,000 new jobs analysis be a good number, the the that the actual report did not exceed expectations is bad for traders and investors can you see how this junk gets confusing now? I almost confused myself writing this…. AND NOW FOR MY FINAL POINT: Since all analysis the preceding expectations of a news release have already been carried out and are visible on the price chart, why not just analyze and learn to trade off the price action on the price chart??

What a novel idea! You see, even after the news training released we can still use technical analysis to trade the price movement, so really technical analysis is the clearest, most practical, and most useful way to analyze and trade the markets. But, what I am saying is that it should be viewed and used as a compliment to technical analysis and fundamental should be used sparingly, when in doubt consult the charts and read the price action, only use Fundamentals to support your Technical view or out of pure curiosity, never rely solely on Fundamentals to predict or trade the markets.

The To Next Chapter — Part 6: Training is Price Action Trading Analysis? Part 1: Market — What Is Forex Trading? Part 2: Forex Trading Terminology Training 3: Long or Short?

Part 5: What is Fundamental Analysis? Part 6: What is Price Action Trading Analysis? Part 7: Introduction to Forex Charting Part 8: What Is A Forex Trading Strategy? Disclaimer : Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. Futures, options, and spot currency trading have large potential rewards, but also large potential risk.

You must be aware of the risks market be willing to accept them in order to invest in the futures and analysis markets. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website.

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The growth rate of GDP is the important number to look for Trade Balance Trade balance is a measure of the difference between imports and exports of tangible goods and services.

This report is often revised fairly significantly after the final numbers come out Housing Data Housing data includes the number of market homes that a country began building that month as well as existing home sales. Fundamental Analysis Technical analysis and Fundamental analysis are the fundamental main schools of thought in trading and investing in financial markets.

I would also like to ask them how myself and many other price action traders can successfully trade the markets by learning to trade off of a handful of simple yet powerfully predictive price action signals Looking at the daily spot Gold chart above, we can clearly see that support and resistance levels are important to watch.

I almost confused myself forex this… AND NOW FOR MY FINAL POINT: Since all of the preceding expectations of a news release have already been carried out and are visible on the price chart, why not just analyze and learn to trade off the price action on the price chart??

But, what I am saying is that it should be viewed and used as a compliment to technical analysis and it should be used sparingly, when in doubt consult the charts and read the price action, only use Fundamentals to support your Technical view or out of pure curiosity, never rely solely on Fundamentals to predict or trade the markets Jump To Next Chapter — Part 6: What is Forex Action Trading Analysis? Jump Back To Start — Forex Trading University Syllabus Of All Chapters Part 1: Introduction — What Is Forex Trading?

Part 9: Common Forex trading mistakes and traps Part What is Technical Analysis? Part How to Make a Fundamental Trading Plan Part The Psychology of Forex Trading Part Professional Price Action Forex Trading Strategies Follow nialfuller!

FUNDAMENTAL ANALYSIS ( HOW TO CHECK QUALITY OF STOCK