What is a basic fundamental analysis strategy? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Fundamental Analysis, Technical Analysis Or Graph Analysis? 28 replies

basic 4h trend trading strategy, is it enough? 5 replies

basic automation for my strategy 1 reply

Making Money and the Most Basic of All Basic Strategies 42 replies

Trendlines Basic Analysis 3 replies

What is a basic fundamental analysis strategy?

  • #1
  • First Post: Dec 28, 2014 4:47pm Dec 28, 2014 4:47pm
I'm trying to transition from all technical analysis to part technical and part fundamental. What is a good strategy?

Interest rates should be getting higher to be bullish right?
Does this mean we should be bullish on USD during 2015?
  • #2
  • Dec 29, 2014 1:47am Dec 29, 2014 1:47am
Quoting tradervt
Interest rates should be getting higher to be bullish right?
Thats right - if you think monetary policy needs to tighten, (usually means higher interest rates) look for opportunities to buy that currency. If you think monetary policy needs to loosen, (lower interest rates/QE) look for opportunities to sell that currency.

Good strategy is match a bullish currency (eg USD) to a bearish one (eg EUR), and look to sell EUR/USD on retracements - if you think the larger fundamental biases are still there. Good luck
si hoc legere scis nimium eruditionis habes
  • #3
  • Dec 29, 2014 8:00pm Dec 29, 2014 8:00pm
Quoting tradervt
I'm trying to transition from all technical analysis to part technical and part fundamental.
May I ask why?

Don't worry. I won't try to convince you otherwise. Am just curious.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #4
  • Dec 29, 2014 8:24pm Dec 29, 2014 8:24pm
Quoting tradervt
I'm trying to transition from all technical analysis to part technical and part fundamental. What is a good strategy? Interest rates should be getting higher to be bullish right? Does this mean we should be bullish on USD during 2015?
for Forex, few fundamental things to look at are:

- interest rates and central bank's actions/position, forecasts etc
- positioning - hard to know without dealer research but futures positioning can be used
- performance of assets denominated in the currency
- m&a across borders
- anything that would affect the demand/supply of currency - like earthquake in japan boosted demand for yen

one thing you need to keep in mind - "market can defy fundamentals longer than you can remain solvent" :-)
Think : Trade : Live Life
  • #5
  • Last Post: Dec 29, 2014 8:32pm Dec 29, 2014 8:32pm
Quoting stt
{quote} for Forex, few fundamental things to look at are: - interest rates and central bank's actions/position, forecasts etc - positioning - hard to know without dealer research but futures positioning can be used - performance of assets denominated in the currency - m&a across borders - anything that would affect the demand/supply of currency - like earthquake in japan boosted demand for yen one thing you need to keep in mind - "market can defy fundamentals longer than you can remain solvent" :-)
great summary
0 traders viewing now