I got bit by the FX bug a couple of years ago, and have NOT been able to get it out of my blood. I have been looking for ways to develop my edge – to make FX my primary income instead of secondary. My question: how much focus do I really need to put on fundamentals vs. technicals – or do I have to even deal with fundamentals?
I’ve been a technical trader. I really did not want to know the fundamentals, but out of necessity would check our trusty Forex Factory calendar to get a heads up on what might affect my trade. It was then that a couple of articles from one company really caught my attn. on the FF site. Suddenly I felt as though Fundamentals were maybe not to be ignored as easily as I had done before, especially when the Scary Stuff was being explained so easily.
In exploring the TheLFB site I have found it a great resource to find out not only what fundamentals might be affecting the market currently, but I really got the understanding of why and when fundamentals drive the market, yet still to use Technicals to fine tune entries and exits. I value the kind of insight that seems to be missing in Forex- experience in the field, why is it that there are so few Mentors out there with a depth of Forex experience? I understand that de-regulation was not too long ago, but we are thin on the ground with experienced Traders that have stood the test of time it seems.
News and Charts for me really seems to be the perfect blend, and I don’t have to search all over the internet to find the info or listen to a bunch of negative news (often slanted) which I really didn’t want to hear in the first place. Is my faith displaced? Can a TechnoFundamentalist make it in Forex?
My question is a general one, now that I have found the Fundamental link that I was missing, and now that I have a resource that I would like to develop, is there anybody else that has blended Fundamentals and Technicals? It seems that when you scratch the surface of the F Word more traders than not say ‘forget that, you will see the news in the charts anyway’, is that really correct?
We saw a Technical move last week from the Euro, moving lower, and it was Technically explained as a pull-back from all-time highs, instigated by Fib levels getting broken, or Gann lines getting hit and drawing in orders, or Price Point reversal action. In reality however it was instigated by the ECB and Swiss National Bank selling Eur and Chf to buy Usd in an effort to provide Dollar liquidity. The move started on the day that a group of ECB officials came out and started Jawboning about ECB rates and growth maybe not being sustainable. The Technical pullback was driven by Fundamentals. Now that I know the reason behind the move, from my new found resource, I am going to maybe question how strong the technical short signals now are on my Euro charts- there is no doubt that they look Short, no doubt that the moves were profitable, but to move that hard they really must have been more than Technically driven. Having the ability to look at both the Fundamental and Technical views means that I will now avoid reacting too heavily to those Short signals. Am I miss-guided? I am now looking at Fundamentals being the Driver, and the Technicals being the price points that the momentum gets tested.
Maybe I will call it my Fundamental Filter. The flaw in it that I can see is maybe in going to a lot of News sources, I’m keeping it to one, maybe two for clarity. Is there anybody else out there that has merged the two and made it work? Are there many TechnoFundamentalists?
Yes, I think you can make money being strictly a technical trader, but to understand what is driving the market adds a whole new dimension to my trading, and increases my edge. I admit 2+ years doesn’t make me a veteran trader, but I will say my knowledge and understanding (+ profitable pips, thanks guys!) have increased. What say YOU?
Like to hear from other seasoned traders.
I’ve been a technical trader. I really did not want to know the fundamentals, but out of necessity would check our trusty Forex Factory calendar to get a heads up on what might affect my trade. It was then that a couple of articles from one company really caught my attn. on the FF site. Suddenly I felt as though Fundamentals were maybe not to be ignored as easily as I had done before, especially when the Scary Stuff was being explained so easily.
In exploring the TheLFB site I have found it a great resource to find out not only what fundamentals might be affecting the market currently, but I really got the understanding of why and when fundamentals drive the market, yet still to use Technicals to fine tune entries and exits. I value the kind of insight that seems to be missing in Forex- experience in the field, why is it that there are so few Mentors out there with a depth of Forex experience? I understand that de-regulation was not too long ago, but we are thin on the ground with experienced Traders that have stood the test of time it seems.
News and Charts for me really seems to be the perfect blend, and I don’t have to search all over the internet to find the info or listen to a bunch of negative news (often slanted) which I really didn’t want to hear in the first place. Is my faith displaced? Can a TechnoFundamentalist make it in Forex?
My question is a general one, now that I have found the Fundamental link that I was missing, and now that I have a resource that I would like to develop, is there anybody else that has blended Fundamentals and Technicals? It seems that when you scratch the surface of the F Word more traders than not say ‘forget that, you will see the news in the charts anyway’, is that really correct?
We saw a Technical move last week from the Euro, moving lower, and it was Technically explained as a pull-back from all-time highs, instigated by Fib levels getting broken, or Gann lines getting hit and drawing in orders, or Price Point reversal action. In reality however it was instigated by the ECB and Swiss National Bank selling Eur and Chf to buy Usd in an effort to provide Dollar liquidity. The move started on the day that a group of ECB officials came out and started Jawboning about ECB rates and growth maybe not being sustainable. The Technical pullback was driven by Fundamentals. Now that I know the reason behind the move, from my new found resource, I am going to maybe question how strong the technical short signals now are on my Euro charts- there is no doubt that they look Short, no doubt that the moves were profitable, but to move that hard they really must have been more than Technically driven. Having the ability to look at both the Fundamental and Technical views means that I will now avoid reacting too heavily to those Short signals. Am I miss-guided? I am now looking at Fundamentals being the Driver, and the Technicals being the price points that the momentum gets tested.
Maybe I will call it my Fundamental Filter. The flaw in it that I can see is maybe in going to a lot of News sources, I’m keeping it to one, maybe two for clarity. Is there anybody else out there that has merged the two and made it work? Are there many TechnoFundamentalists?
Yes, I think you can make money being strictly a technical trader, but to understand what is driving the market adds a whole new dimension to my trading, and increases my edge. I admit 2+ years doesn’t make me a veteran trader, but I will say my knowledge and understanding (+ profitable pips, thanks guys!) have increased. What say YOU?
Like to hear from other seasoned traders.
