TIPS TO CONDUCTING FUNDAMENTAL ANALYSIS IN THE FOREIGN EXCHANGE MARKET (FOREX):
1) you have to be informed the economic indicators that are seize most of the market's attention at any given time. Such indicators are catalysts for the largest price and volume movements.
2) Please keep an economic calendar on hand that lists the indicators and when they are due to be released. Keep an eye on the future, often markets will move in anticipation of a certain indicator or report due to be released at a later time.
3) Observe the market expectations for the data, and then pay attention to whether or not the expectations are meeting. That is far best important than the data itself. Occasionally, there is a severe difference between the expectations and actual results and, if there is be aware of the possible justifications for this difference.
4) Do not respond too quickly to the news. Many times, numbers are released and then revised, and things can change quickly. Observe and pay attention to these revisions, as they may be useful tool for seeing the trends and reacting more accurately to future reports.
2) Please keep an economic calendar on hand that lists the indicators and when they are due to be released. Keep an eye on the future, often markets will move in anticipation of a certain indicator or report due to be released at a later time.
3) Observe the market expectations for the data, and then pay attention to whether or not the expectations are meeting. That is far best important than the data itself. Occasionally, there is a severe difference between the expectations and actual results and, if there is be aware of the possible justifications for this difference.
4) Do not respond too quickly to the news. Many times, numbers are released and then revised, and things can change quickly. Observe and pay attention to these revisions, as they may be useful tool for seeing the trends and reacting more accurately to future reports.
There are several economic indicators, and even more private reports that can be used to evaluate the fundamentals of FOREX. It is important to take the time to not only look at the numbers, but also understand what they mean and how they affect a country's economy. When correctly used these indicators can be an more valuable resource for any currency trader.
