Learn Fundamental Analysis

Fundamental analysis (Fundamental Analysis) to predict price movement with translating various information state of the economy, including news, reports and policies issued by the Government, and also rumors.

On Fundamental analysis (Fundamental Analysis), a drastic price movements occur when there are events that are unexpected. Such events could be the increase/decrease in interest rates from the central bank, until political events or wars. An example is the events of 9/11. When the events of 9/11 happened, weakened due to USD rate everyone predicted the event will affect the US so likely USD weakening. This incident caused many market participants sell USD. That rate is USD really went down drastically

Economic News that potentially Important cause of market price movement

(Interest Rate Statement)

(Employment Change)

(Gross Domestic Product)

(Trade Balance)

(Consumer Price Index)

(Retail Sales)

(Durable Goods Order)

Economic News that potentially Important cause of market price movement

The Announcement Of Interest Rates (Interest Rate Statement)

Growth/Change In Employment (Employment Change)

The Value Of The GDP (Gross Domestic Product)

Balance Of Trade (Trade Balance)

The Consumer Price Inflation Rate (Consumer Price Index)

The Level Of Retail Sales (Retail Sales)

Order Level Durable Materials (Durable Goods Orders)

Forex Trading Techniques Based On Google News (News Trading)

There are 2 ways that are often used to trade forex trader based on Google news (News Trading):

Use the Buy Stop and Sell Stop Order

This technique is done by using the Buy Stop and Sell Stop pending orders before important news was announced. The upside is if the price moves do not fit predictions, it is still possible to get profit. The risk can be minimized by means of input stop loss which is adjusted to the type of news.

The downside of this technique is the case of whipsaw, i.e. when the irregular market moves to 2 different directions rapidly (example: prices rise, fall, and rise again in a relatively short time)

Trade directly at the market price at the time the news was announced.

This technique is done by comparing the difference between the actual value and the forecast from the news. If the difference is big enough the trader will immediately open buy or sell at the market price.

The advantage of this technique is the possibility to get a bigger profit than technique 1 above.

The disadvantage is if the movement of the market not held properly, then the trader concerned will experience considerable loss because there are no stop loss to protect his position. If you want to use this technique then we recommend forex brokers you have instant execution and you have a very good source of news. For those of you who are still beginner, you should not use this technique because it is very risky