Why Fundamental Analysis Matters in Forex Long-term trends: Fundamental Analysis (FA) helps identify strong or weak currencies over months or years. News-driven volatility: Major economic releases (e.g., interest rate decisions) cause sharp price movements. Policy shifts: Central bank actions (like QE or rate hikes) shape currency strength. Key Economic Indicators in Forex Indicator Why It…
Technical Analysis (TA) is the study of historical price movements to predict future trends. Unlike fundamental analysis, which focuses on economic factors, TA relies on charts, patterns, and indicators to identify trading opportunities. Basics of Technical Analysis Core Principles: Price Discounts Everything: All known information (news, sentiment) is reflected in price. History Repeats Itself: Patterns…
Forex Trading for Beginners: A Complete Guide 1. What is Forex Trading? Definition: Forex (foreign exchange) is the global marketplace for buying and selling currencies. It’s the largest financial market, with a daily turnover exceeding $7 trillion. Purpose: Traders aim to profit from fluctuations in exchange rates (e.g., EUR/USD rising or falling). 2. Key Forex…
In the forex market, currencies are traded in pairs (for example, if you buy USD/CHF, you are actually buying the U.S. dollar and selling Swiss francs at the same time). You pay interest on the currency position you SELL and collect interest on the currency position you BUY. What makes the carry trade special in the spot…
Did you know there is a trading strategy that can make money if the price stayed exactly the same for long periods of time? Well, there is and it’s one the most popular ways of making money by many of the biggest and baddest money manager mamajamas in the financial universe! It’s called the “Carry…
As forex traders, it’s important to pay attention to major economic data releases, speeches from government officials, and geopolitical events. Why? Because this information usually reflects the strength of a given economy and may indicate the future direction of a given currency. Trading the news is often difficult and not be suitable for everyone, but the…
It’s not enough to only know technical analysis when you trade. It’s just as important to know what makes the forex market move. Just like in the great Star Wars world, behind the trend lines, double tops, and head and shoulder patterns, there is a fundamental force behind these movements. This force is called the news!…
Here’s how to find the Commitment of Traders report online. Step 1: Open up the address below in your web browser. (https://www.cftc.gov/MarketReports/CommitmentsofTraders/index.htm) Step 2: Once the page has loaded, scroll down a couple of pages to the “Current Legacy Report” and click on “Short Format” under “Futures Only” on the “Chicago Mercantile Exchange” row to…
Let’s now learn about the COT Report. The Commodity Futures Trading Commission, or CFTC, publishes the Commitment of Traders report (COT) every Friday, around 2:30 pm EST. Because the COT measures the net long and short positions taken by speculative traders and commercial traders, it is a great resource to gauge how heavily these market players are…
How’s Mr. Market feeling? Every forex trader will always have an opinion about the market. “It’s a bear market, everything is going to hell!” “Things are looking bright. I’m pretty bullish on the markets right now.” Each and every trader will have their own personal explanation as to why the market is moving a certain…