The Secret of Forex Scalping Using Fundamental.
Many forex traders prefer to use technical observations rather than fundamentals. Technical observation is indeed very important. Of course to find the right entry and exit levels (SL and TP). But the use of technical analysis is not yet perfect to get a comprehensive market picture.
Key players in the forex market are multinational companies, and the world’s central banks. Billions of dollars in hedge funds and top-level investment banks that serve them. It doesn’t matter if there is a double top at EURGBP on the 1 hour chart.
Instead, they formulate their trading by analyzing the latest economic news. And also geopolitical developments, as well as the latest statements from the G-7 monetary authority.
Therefore, the right approach to forex trading can be summarized. That is fundamental as a trigger for direction, technical for entry and exit.
Forex Scalping Using Fundamental.
There are also forex traders who trade based on fundamental observations. Usually they choose a larger timeframe, such as the daily and / or weekly chart. Whereas forex traders who trade with smaller timeframes focus on tight technical setups.
One of the drivers of the forex market is the release of transparent macroeconomic news. This cannot be falsified and is available to all market participants at the same time.
The main news that drives the forex market is government economic data. Such as the latest employment statistics, GDP growth rates, trade balance reports. In addition, inflation readings and interest rate announcements are also available.
Retail traders often take advantage by reacting faster to news releases. The reaction is faster than the reaction of corporate market players and hedge fund managers.
During this time, clever retail traders will take advantage of this adjustment situation. Of course, with short-term forex scalping as the pressure on the position of corporate actors moves the market. Yes they are waiting for market movements in line with the news released.