Home Price action is the right way to understand the forex market not economic news

Price action is the right way to understand the forex market not economic news

Forex fundamentals cashbackforexcalculatorOnline forex cashbackforexprofitcalculator are essentially economic variables cashback forex can be considered catalysts for price action in the forex cashback forex calculator Online to predict future price action in the market based on market fundamentals or news data to study the economic fundamentals and news of the market and make predictions about the future direction based on th cashbackforexpipcalculator data seems perfectly It seems logical, but in reality it is not that simple. However, when market data is available, it is usually already incorporated into the market, so once it is released, the impact will be minimal based on some news data or fundamental analysis, and traders and investors tend to act on what is likely to happen in the future, which is where the "buy the rumor" part comes in. The reason it is tricky is that we never know for sure how long this part of the news has been in the market and what happened at the moment the data was released, so it is most clear to analyze the price action of the original time price chart price action reflects all the variables of the market / the original price action of the market will directly reflect each of the thousands of variables that lead to the direction of that market variables can cause any market to move on any given day, but because these fundamental and news variables are catalysts for market price action, it doesnt necessarily mean that trying to analyze them is useful or even relevant to short to medium term forex traders most of the time, even if it is a big economic news, such as the nonfarm payrolls data, but the trader has already been speculating on the outcome for weeks or months before So when it happens, the market reacts with that outcome already included, so its more like a non-event In these big news events, there is usually greater market volatility, but with a more focused time frame chart like ours, intra-day volatility doesnt have a big impact In the chart below, we can see the daily chart of GBPUSD on December 18, after the FOMC meeting was announced Soon after, the market spiked Now, the important point to consider is that traders and investors have been discussing the impact of this data release, and the GBPUSD only moved higher long before that The Fed announced its own bond buying program was tapering, but the announcement itself was actually positive for the dollar, but the trend as always a single news event is unlikely to change the course of this trend  How important is economic news / Many traders think that all their favorite financial news channels about the market or every day economic data on the internet is important, after all, there are many experts talking about it but, must it be important? The financial news industry is a huge industry, employing thousands of people, but in reality economic data can be a different position for everyone. As we discussed before, the price action of the market does give you all the information you need to know about that market. News reports and fundamentals are incorporated into the market and react through price action so you can really stop reading economic reports and listen to the news. The "expert opinion" of the experts in the market, they simply dont matter 

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