Forex Fundamentals in the form of Near-Term Market Sentiment
I’ve been paying more attention to combining Forex fundamentals with technical analysis and near-term market sentiment, and it’s been working really well. In the past, when I relied solely on sentiment and fundamentals, I realized I wasn’t finding as many trading opportunities, and my entries weren’t as precise as I wanted.
Now, I’ve started using my original trading methods and have also added trend trading and entering on pullbacks to my strategy. I’m very happy with how this has been going. By using Forex fundamentals and near-term sentiment as a filter, my trading has been much more successful.
Forex Fundamentals with Technicals
In the video below, there’s a trade that isn’t precisely a pullback trade. I’ll share more videos on that later. This is a trade I made recently on the 10th, during the Bank of England’s bank rate decision. If we check ForexFactory, we can see that just last week, on the 10th, the official bank rate statement was released. However, I was more interested in the bank statement that followed. I didn’t expect any changes in the bank rates, and indeed, they didn’t change. But the statement afterward seemed more dovish.
Because of this dovish statement, I decided to short the pound and go long on the Canadian dollar. At the time, the Canadian dollar was strong, thanks to rising oil prices. I also held the trade longer than usual, which is becoming a habit for me. I’m using volume indicators and stochastics, along with support and resistance levels, to help decide when to exit. In the video, you can see that I went near a round number. Nowadays, I tend to hold trades longer, especially around bank rate statements, as they often have long-term effects. I held this trade for at least three hours and ended with a good number of pips.
I’ll provide more detailed updates on how I’m using technical analysis later, but I highly encourage revisiting old technical methods you might have set aside. Once you have a solid grasp of the fundamentals, these old systems can work together excellently.
I have been thinking of a way to get into forex and begin trading. It looks like I may have found a source of information.
I had some info on joining a conference call but I lost my phone and the number in to the group. I was wondering what advice do you have for someone interested in trading forex.
Where do I begin? What should I do to learn more about it without being scammed?
I would check out JarrattDavis.com for fundamentals and Theforextradingcoach.com for technical trading. Start with Babypips.com first, since it’s free and then consider the ones I first mentioned.