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3 Tips for Using Forex News for Fundamental Analysis

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Many traders say that forex news is confusing and often does not match price movements, so it is not possible to succeed by using fundamental analysis. In fact, this is only because of errors in using forex news. For example because certain economic data is green, it means that if it is bought it must be a success; in fact the green one data only, while the other data is even red.
1. Don't Use Forex News For News-Trading
News-Trading is not a fundamental analysis, and fundamental analysis is different from News-Trading. The function of forex news in fundamental analysis is to provide a reference for Swing Trading or Position Trading, not for scalping or News-Trading.
Famous professional traders generally use fundamental analysis to underlie long-term valuation of currency strength, not as an Open Position guide. For example, if a currency tends to be bullish, then they will put a higher target when open Buy, and be more strict and careful when opening Sell.
2. Pay attention to these seven economic data
Every day there is a lot of economic data released from many countries. However, actually in normal market conditions, only seven traders need, namely: GDP (Gross Domestic Product), Consumer Inflation (CPI), Employment (Unemployment Rate, Non-farm Payroll, etc.), Retail Sales (Retail Sales), Interest Rates, Business Sentiment, and Central Bank Policy.
Changing one data alone is not enough to weaken or strengthen a currency in the long run. If the majority of data tends to be bearish, then the currency will weaken; and vice versa.
Practically, traders can make a list of each of the currencies and the seven economic indicators, then simply mark Bearish (the latest actual data is worse than expected), Bullish (the latest actual data is better than expected), or Neutral (actual data corresponds to expectations). Calculate which one is more, then that's the bias of the exchange rate; up to a month ahead or until most of the data changes direction.
3. Many Things Apart from Economic Data That Can Be Market-Mover
Although the seven types of economic data above are very important, don't assume that only seven of them need to be considered by traders. Explosive news such as the release of Britain from the European Union (Brexit), the Russian invasion of the European Union, and other political and security related events could have a greater impact than economic data.
Be aware that in addition to normal market conditions, there are also fundamental "abnormal" market conditions. In such conditions, even though the majority of economic data is bullish, the exchange rate can remain depressed. Therefore, even though you already have the seventh reference to the data above, you still cannot ignore the forex news that is politically sound. Add at least one point regarding the assessment of political conditions and security on the list you made in point two.

#1 - February 10, 2019, 12:48:14 PM

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thank you for sharing the tips..
hopely your tips can warning me about trade with news
#2 - February 10, 2019, 04:26:15 PM

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The thing to note is also, always read the rules of the broker, because there are several brokers who have rules that do not allow to get big profits when news releases such as Instaforex, for example. Where the maximum profit in trading using the release news is 10%, it can't be more

#3 - February 10, 2019, 10:56:53 PM

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3. Many Things Apart from Economic Data That Can Be Market-Mover
Although the seven types of economic data above are very important, don't assume that only seven of them need to 
This kind of news can't be found on any economy calendar since it's one of fundamental factor that happens without any planning which known for public and it has individual authority from the country who's currently in conflict. This phenomenon happens because there are some groups or people who want to force some currency to fall or rise by creating issues or conflict which possibly is made up or set up by them to create world financial chaos.

Whenever there are issues or conflicts, big investors usually withdraw their money or stop their trading to reduce the risk of loss. So whenever those big investors withdraw the money, market will move in imbalance value which will create severe damage to market, which can be seen as big spike up or down all of sudden. When we look at our economy calendar, we won't notice any release about this because it's already happening.
#4 - February 11, 2019, 07:57:48 AM
« Last Edit: April 28, 2021, 10:40:23 PM by Mikser »

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In my opinion, fundamental news is only limited to an issue that will or is currently happening, it is true that fundamentals cannot be used as a reference for our trade entry, especially for small capital players, but you should act wisely who knows if we need large capital
#5 - April 26, 2021, 07:42:28 PM

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traders must mature knowledge of this important forex fundamental news so as not to get confused: interest rate announcements, Gross Domestic Product (GDP), Consumer Price Index (CPI), Retail Sales, Employment and Unemployment, Industrial Production and Manufacturing, and the Trade Balance.
#6 - April 28, 2021, 02:09:29 PM

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Fundamentally if I use it to see price forwarding or reversal. So it can be a place for correski and determination also for long therm, so fundamental analysis if we can understand even though there is already technical used. This is the purpose for the prospect of Long Therm when else when the entry is in accordance with the price movement because of the fundamental influence as happens on GBP can get more profit 500an.
#7 - May 17, 2021, 03:05:03 AM

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uses fundamentals at this time I still don't understand Because I am the type of trader who uses analytical techniques maybe one day it will be useful for me if I use large capital
#8 - June 19, 2021, 01:44:12 PM

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we can take advantage of trading by taking advantage of the news that will be released by trading when the news will be released or some time after its release, it will be safer
#9 - June 20, 2021, 04:44:50 AM

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I think what happens in the market is because it is news-driven. so we should not underestimate the news.
#10 - June 20, 2021, 11:58:36 AM

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if we want to trade by using news, then we can only choose news of the high impact type for us to take advantage of, because the impact is usually quite large
#11 - June 21, 2021, 08:48:41 PM

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If you want to trade by utilizing news that will be released, then we can do tricks, we wait when the news will be released or when shortly after release, and we find opportunities based on our system to enter the market
#12 - June 23, 2021, 01:11:38 AM

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For me, trading with fundamental analysis is quite complicated, so if you want to take advantage of the news, you should adjust it to the technical analysis that we have
#13 - June 25, 2021, 11:21:33 AM

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If the capital we use is small, it is better to avoid trading during news because when there is news, the spread will usually widen and market movements are fast.
#14 - June 26, 2021, 07:30:22 AM

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As far as I know if we want to trade by utilizing news even though we are technical seroang analysis, then we can wait for the price when the news before the news hose a few minutes
#15 - June 26, 2021, 11:18:23 AM


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