Whether you are a seasoned trader or just starting out, trading news and analysis for Forex can be a very useful tool for your trading success.
Pivot points
Using pivot points in Forex trading is a great way to find breakouts and support and resistance levels. They provide a quick and simple way to see where the market is heading and are predictive in nature.
For most traders, pivot points are calculated by looking at the day’s high, low, and closing price. They are a useful tool in determining possible support and resistance levels and are easy to apply based on any timeframe.
They are particularly important for short-term and intraday traders. They allow for rapid analysis and can lead to higher profits. They are also useful in determining reversal patterns and possible exit points.
Historically, pivot points were used for daily and weekly timeframes. With the advent of new technology, they are now available on smaller timeframes. They have increased data sets and are more reliable.
They can be calculated manually or automatically on many trading platforms. Most brokers offer automatic calculators. A good calculator will calculate the pivot points with a few clicks of the mouse.
Economic indicators
Traders use economic indicators to determine the future value of a currency. This information allows them to forecast the movement of quotations and make informed trading decisions. There are many different indicators to choose from. These can be very useful to all types of traders.
There are two types of economic indicators – coincident and lagging. Lagging indicators are indicators that lag the current business cycle. When a business cycle changes, lagging indicators are adjusted to follow the new trend.
The US Bureau of Labor Statistics releases a number of labour reports each month. These include the Non-Farm Payrolls, which shows how many people are working in the US. It also includes the employment rate and average hourly earnings.
A strong labour market leads to higher consumer spending. This can result in a growing economy. Inflation can affect global markets. Central banks are more likely to raise interest rates in order to reduce inflation. This can cause the value of a currency to rise.
Geopolitical events
Whether you are trading currencies or bonds, geopolitical events are an important factor to consider. These are events that can have an impact on the value of a currency, the exchange rates, and the economy in general.
Some of the most significant geopolitical events include terrorist attacks, natural disasters, wars, and civil unrest. These types of events are not easy to predict, and can have a serious impact on the forex market.
The Forex market is one of the most active financial markets in the world. There are more than four trillion dollars traded each day. As such, it is a highly interconnected market. Traders can develop strategies to take advantage of the volatility that comes with these markets.
The IMF has commented on the behavior of central banks in recent years. The Fed, Bank of Japan, and the European Central Bank have been criticized for their policies. The IMF is a regular source of economic data.
Short-term and long-term market sentiments
Traders combine a variety of technical indicators to gauge market sentiment. Some of the most useful indicators vary by asset type.
The Fear Index, for example, is a market indicator that rises during periods of higher risk. The S&P 500 Volatility Index tracks implied volatility in S&P 500 stock prices. When the VIX rises, investors are worried that a trend might be about to reverse.
Another market sentiment indicator, the Commitment of Traders report, is released by the Commodity Futures Trading Commission every Friday. This report gives data on all transactions in the financial markets, including foreign exchange.
Market sentiment is a collective opinion of traders, investors and other participants about the price of a particular instrument. It is difficult to read individual attitudes, but the overall sentiment is a good indication of the direction of a particular market.
One common indicator of market sentiment is the 200-day simple moving average. When the MA rises, the market is considered bullish. Conversely, when the MA declines, the market is considered bearish.
