Fundamental analysis in forex is one of the ways to analyze the currency markets. As the name suggests, fundamental analysis is completely different to technical analysis. While technical analysis deals with price and historical price behavior, fundamental analysis focuses on the factors that are driving the prices in the market. Fundamental analysis is widely used in the stock markets and primarily among investors. But it can also be used in a number of other markets, including forex and futures.
Fake news has become one of the buzzwords of 2017, with almost weekly reports regarding politicians or political events, causing outrage due to their spurious nature. The growing importance of social media has exacerbated the problem with fake news reports spreading like wildfire and quickly garnering vast amounts of attention before they can be disputed and or corrected.
Trading is an interesting profession and has no peak as in other occupations. It is in fact an endless journey of discovery of oneself and trading itself. Trading for me at beginning was very tough not that I was not successful in other endeavours but i took it like every beginner thinking that it was easy. With this perception, i approached trading without a plan or proper trading education on how the market works. What do you expect? Your guess is as good as mind. It was a total disaster after taking many losses; i was almost psychologically blown a way. At this stage, two important things happened to me, my P&L was in the red and i was down emotionally.
Statistics say that hardly 2% of traders actually make the cut. The remainders of the 98% are merely a flash in the pan. Some traders give up at the first taste of failure; others continue to spend money in hopes of finding the 'Holy Grail' of trading.
In this day and age, becoming an independent financial trader is easy. You just need some capital and a brokerage account, and voilà, you're a trader! The only problem is, trading the markets is not quite so straightforward!
To say confluence is powerful would, in our humble opinion, be a huge understatement! We agree that individual pattern recognition is worthy of attention, but without additional confluence it is not something we would entertain as a conceivable setup. .
A general flaw of many traders is the habit of seeking "certainty" via indicators. It's not uncommon to see charts with five to seven indicators overlaid on them. However, the traders that seek certainty through indicators are usually the same traders that don't "dig deep" into the indicator to understand how it's built.
Pivot points are extremely popular with traders, they are used to spot direction, probable reversal points and potential support and resistance levels. It's a well-known tool that is of particular interest to novice traders, due to the simplicity of the mathematical formulas it incorporates.
In the previous article, we looked at how traders can ignore the moving average and instead focus on just the Average Directional Index (ADX) and the Moving Average Convergence and Divergence (MACD) indicators to determine the trend strength.
ActionForex.com was set up back in 2004 with the aim to provide insight analysis to forex traders, serving the trading community over a decade. Empowering the individual traders was, is, and will always be our motto going forward.