How to Use Fundamental News in Forex Trading
Fundamental analysis is a method of analysis in capital markets based on the economic fundamentals of a company. Fundamental (economics) in the economic sense there are two bases of economic prosperity. Economic development is a process of increasing total income.
Fundamental Analysis can be used to determine forex valuations, namely how much nominal dollar shares are worthy of being appreciated.
To get information about economic data, you can open the forexfactory.com website
Okay. You definitely can’t wait to know the tricks. We just start.
Get to know Forexfactory.com
1. Equate Time Zone
a. Click the link for the hour number next to the “Login” button. You can see the link in the form of a clock that is close to date & today calendar.
2. News Screening
By default www.forexfactory.com will display all news from several major currencies that are quite long and complicated. Here are the tips:
a. Click the “Filter” menu on the right side of the website
b. Select the currency you want to observe
c. Select the level of influence from the news (Red: High Impact, Orange: Medium Impact, Yellow: Low Impact, White: Non Economic)
d. Select News Type
e. Click the “Apply Filter” button
3. News Analysis
a.Date and time: Date and time of news
b. Currency: Currency influenced by news
c.Impact: Level of influence of news
d.Detail: to get a more detailed of the news.
e.Actual: numbers to be released
f. Forecast: Predictions based on expert analysis
g.Previous: Previous period numbers for the same data
4. Meaning of News and Impact
Here is an explanation of news and impact:
a. Click the folder image (column “Details”)
b. “Specs” column to find out the details of the news and history column to see the results of previous data releases. The section “Usual Effect” is the impact of the news on the movement of the currency of the country concerned. If the release data is green it means it’s good for the currency, if the release data is red it means bad for the currency.
Now, we will discuss the strategy of utilizing the news.
1. Determine the highest price and the lowest price of the candles on the day.
If you want to try this strategy, please try it on our demo account by visiting our website at www.forex4live.com. Hopefully the above information is useful for all who read it.
Congratulations to analyze.