You will find the best technical indicators of the Forex market at the link, and we will dwell on fundamental ones in more detail.
Trading on Forex using fundamental analysis
The currency, stock, and commodity markets each have their own fundamental factors. For example, the OPEC cartel's decision to limit oil production affects the price of oil and petroleum products, but does not affect the quotes of the US dollar. But there are best Forex indicators that can affect all markets simultaneously: the discount rate. The Fed's discount rate influences the currency and stock markets the most, but other rates are also important – the rates of the Central Bank of Japan, the EU, and China. The discount rate is the rate at which the central bank lends to commercial banks and actually means an increase or decrease in the money supply. An outflow of investors from currency markets automatically means their inflow into stock markets; Non-Farm Payrolls. The employment report for all US sectors except agriculture can radically reverse the dollar's trend. A deviation of 40,000 or more from the forecast is considered significant; press releases from central bank leaders.
More details about fundamental analysis can be found by looking at the events of the economic calendar, which publishes news release dates for all countries of the world, ranked by importance.
Rules for trading using fundamental analysis
Do not trade at the time of statistical data releases. This moment is the most dangerous in terms of volatility; the maximum drawdown can wipe out the entire deposit or trigger far-away stop losses. After the trend breaks through previous support or resistance levels, you can try to open a position; Remember investor expectations. Positive statistical data does not mean trend growth. Any release of statistics is already forecast by investors, who embed their expectations into the speculative component of the price. If the statistics come out weak, not meeting expectations, the price may reverse instead; Evaluate all fundamental factors as a whole. The release of one news item may be a more influential factor than the release of another.Independent strategies are built on fundamental indicators. But if you do not yet know how to evaluate them correctly, use technical analysis in combination. Follow the link, download best Forex indicators, follow the installation instructions and test them together with fundamental analysis on a demo account.
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