Business And Finance

Does Fundamental Analysis it?

Fundamental analysis predict price movements by translating a variety of information on economic conditions, including news, reports and policies issued by the government, and rumors.

In Fundamental Analysis (Fundamental Analysis), a drastic price movements occur when there are events that are not unexpected. It could be the increase / decrease in interest rates from central banks, to political events or wars. An example is the events of 9 / 11. When the events of 9 / 11 happened, rate USD to weaken due to estimating the event everyone will have a big impact on the U.S. so it is probable USD weakened. This incident caused many market players to sell USD. Impact rate USD really comes down drastically.
How to Trade Forex Based News (News Trading)

Basically, Forex Trading is based on news (News Trading) is a trading technique by comparing the difference between the actual results of economic news with the forecast (prediction) of the news.

Generally, if the difference between actual value and the value forecastnya large enough, then the price movement will be more drastic than if the difference is small or in accordance with predictions. But then again, there are other factors you should consider if you want to use the technique Trading News

Important factors to consider for News Trading:

• The types of economic news what is considered important by the market and potentially lead to substantial price movements (drastic).
• The more important then price movements that occur usually also the larger
• How large is the difference between the actual and forecast (prediction) of the news.
• The greater the difference between the actual value of the forecast, the greater the price movement that occurs
• Daily High-Low Range (Range Daily) some time before the news was announced.
• The smaller daily range of the currency in question before the announcement of the news, usually relatively larger price movement
• Pair type of currency you use, the Spread is enlarged, and Slippage.
• There is a certain pair of little “weird”, because although there is news that should be important enough for the pair, but not a big enough price movement, there are even times when prices barely moving. There are certain forex brokers who deliberately spread while raising important news announcements. Also often occur slippage (price not fit) between the price that you order with what you get.

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