Resolved Question
Should i learn all the fundamental indicators myself or is it sufficient enough to rely on websites for market
I would like to know if i have to learn all the economic factors that determine a currency pair direction or can i trust that websites like forextips.com and forex360.com give me accurate data as to the direction of my chosen currency pair. I don't have a set currency pair, i trade any currency which my technical indicators prescribe and my Forex websites indicates an uptrend, this is why i need to know if i can rely completely on them when making my decisions or if i have to sift through the news, economic reports and all, myself?
ive been on mt4 demo account for 8months know so im fairly new at this but making progress everyday.
over 2 years ago
Best Answer - Chosen by Voters
Some can make decent profits just through the use of technical indicators. They don't care about economic reports at all. Still, I personally believe that we must be aware of the fundamental background surrounding a currency pair. There are times when it is beneficial for us to know what's up on the economic calendar as it could cause any type technical analysis to blow up right in our faces. An example of this would be the US non-farm payrolls report released every first Friday of the month. During the release of the report, USD pairs tend to experience wild price swings in both directions which could possibly stop you out within seconds! To add insult to injury, you could be served at a much worse price than what you wanted because of slippage. Some technical traders focus only on technical analysis but are aware on what's up on the economic calendar. What they do is they stay out of the market during major economic events and jump back in once the it is clear again so their methods have a higher probability of working out.
over 2 years ago
Answers (3)
I have to agree with my buddy ForexNinja. I think that it's also important for traders to realize what drives the market. I suggest you that should at the very least know what events will be released during the day, and what impact they could have on trading. Why don't you check out BabyPips Daily Economic Roundup? ForexGump has daily posts about economic data being released. I would also suggest reading books that may explain how each set of data is collected and how it affects market dynamics. It may give you a better "feel" for the market.
over 2 years ago
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It would help to know what's going on as well. To be on the safe side! You don't want to be relying solely on them technical indicators.
Just figure out which site you'd want to visit in terms of economic reports. I mean, it doesn't hurt having an idea of what's coming out. I gave some sites below, hopefully they will help you. I really love FreshPips.com as it updates me with all sorts of news. I just look at one economic calendar (either fx360 or babypips) and look at FreshPips for specific news. I used to look at different websites for that! (bloomberg, rttnews, etc)
over 2 years ago
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Not all fundamental indicators have the same impact on a currency. Some indicators, the top tiers, cause a currency to be very volatile (NFP report, GDP, interest rate decision) while some do not. It is advisable to at least get a basic grasp of those market moving indicators that are due during the day and the week so you can better position your trades.
Forexfactory.com has one of the most comprehensive economic calendars around. You may want to refer on that site from time to time.
over 2 years ago
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Open Questions in Economic Indicators
Resolved Questions in Economic Indicators
- Is there a way we could know in advance how certain economic events will affect the market?
- What does CPI stand for?
- Why is the Federal Reserve meeting held at Jackson Hole, Wyoming?
- What are news that move the market?
- What does Non-Farm Payroll represent? How important is this event for currency traders?
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