90% Rebate Exness Everyday

Master IB Exness High Level Briliant - 90% Rebate Exness automatic transfer to account trading every day!!

Select you Language

List of Countries with the Largest Exness Trading Volume in the World

Exness Vietname Exness China Exness Thailand Exness India Exness Japan Exness Indonesia Exness Pakistan Exness UEA XM Philippines
Exness Algeria, Exness Angola, Exness Antigua and Barbuda, Exness Argentina, Exness Armenia, Exness Aruba, Exness Azerbaijan, Exness Bahrain, Exness Bangladesh, Exness Belize, Exness Benin, Exness Bhutan, Exness Bolivia, Exness Botswana, Exness Brazil, Exness Brunei, Exness Burkina Faso, Exness Burundi, Exness Cambodia, Exness Cameroon, Exness Cape Verde, Exness Chad, Exness Chile, Exness China, Exness Colombia, Exness Comoros, Exness Costa Rica, Exness Djibouti, Exness Dominica, Exness Dominican Republic, Exness East Timor, Exness Ecuador, Exness Egypt, Exness El Salvador, Exness Equatorial Guinea, Exness Eritrea, Exness Ethiopia, Exness Gabon, Exness Gambia, Exness Georgia, Exness Ghana, Exness Grenada, Exness Guatemala, Exness Guernsey, Exness Guinea, Exness GuineaBissau, Exness Guyana, Exness Honduras, Exness Hong Kong, Exness India, Exness Indonesia, Exness Isle of Man, Exness Jamaica, Exness Japan, Exness Jersey, Exness Jordan, Exness Kazakhstan, Exness Kenya, Exness Kuwait, Exness Kyrgyzstan, Exness Laos, Exness Lebanon, Exness Lesotho, Exness Liberia, Exness Libya, Exness Macau, Exness Madagascar, Exness Malawi, Exness Maldives, Exness Mauritania, Exness Mexico, Exness Moldova, Exness Mongolia, Exness Montenegro, Exness Montserrat, Exness Morocco, Exness Mozambique, Exness Namibia, Exness Nauru, Exness Nepal, Exness Niger, Exness Nigeria, Exness Oman, Exness Pakistan, Exness Panama, Exness Papua New Guinea, Exness Paraguay, Exness Peru, Exness Philippines, Exness Qatar, Exness Republic of the Congo, Exness Rwanda, Exness Saint Kitts and Nevis, Exness Saint Lucia, Exness Sao Tome and Principe, Exness Saudi Arabia, Exness Senegal, Exness Serbia, Exness Sierra Leone, Exness Solomon Islands, Exness South Africa, Exness Sri Lanka, Exness Suriname, Exness Swaziland, Exness Taiwan, Exness Tajikistan, Exness Tanzania, Exness Thailand, Exness Togo, Exness Tonga, Exness Trinidad and Tobago, Exness Tunisia, Exness Turkey, Exness Turkmenistan, Exness Uganda, Exness United Arab Emirates, Exness Uzbekistan, Exness Venezuela, Exness Vietnam, Exness Zambia, Exness Zimbabwe
Home » » Effective Steps in Implementing Fundamental Analysis Based on News

Effective Steps in Implementing Fundamental Analysis Based on News

Fundamental analysis based on news relies on economic, political, and global events that can influence market price movements. Here are the steps to effectively apply fundamental analysis based on news:

1. Matching Process

  • Economic Calendar: Use an economic calendar to track the schedule of relevant economic news releases. These calendars display the publication times of important economic news from various countries.
  • Time Zones: Pay attention to the time zones of the news releases. Economic calendars often use New York time (EST or EDT), which may differ from your local time. Adjust to your local time to ensure you do not miss important news.
  • Accuracy and Updates: Ensure that the economic calendar you are using is up-to-date and accurately maintained to avoid outdated or incorrect information.

2. Selection Process

  • High Impact News: Focus on news with high impact, usually marked in red or with three stars/bulls on economic calendars. This news can include data such as unemployment rates, inflation rates, interest rate decisions, or GDP data.
  • Relevance: Choose news that is relevant to the currency pairs or markets you are trading. For example, news about European Central Bank (ECB) interest rates will have a greater impact on currency pairs involving the Euro.

3. Executing Trades Based on News

  • News Release: After the news is released, immediately refresh the economic calendar to see the actual value that has been published.
  • Compare with Forecast: Compare the actual results with the forecast or market consensus. Significant differences between the actual value and expectations can cause sharp price movements.
  • Validate Values: Ensure the news values have been published and are valid. If there is no actual value or significant delays, it is better to postpone trading until the correct information is available.
  • Market Reaction: Observe how the market reacts to the news. Sometimes, the initial market reaction may not align with expectations, so it is crucial to monitor the developing price trend before taking a position.
  • Risk Management: Apply good risk management strategies. Major news can cause high volatility, so make sure you use stop-loss orders and appropriate position sizes.

Implementation Example

  1. Economic Calendar: You notice that the US Non-Farm Payroll (NFP) data will be released at 08:30 EST. Convert this time to your local time and note the release date and time.
  2. News Selection: NFP data is considered high impact, so you focus your attention on this release.
  3. Executing Trades: When the NFP data is released, immediately check the actual value and compare it with the forecast. If the result is significantly different from expectations, you might decide to open a position in line with the observed market movement.

Additional Tips

  • Preparation: Always conduct analysis before the news is released to understand market expectations and potential impacts.
  • Follow-Up: After the news is released, continue to monitor additional news or statements from economic officials that may further influence the market.
  • Unexpected News: Prepare a strategy to handle unexpected news or significant events that can dramatically impact the market, such as political crises or natural disasters.

By following these steps and using an informed approach, you can enhance your chances of making better trading decisions based on fundamental analysis and news.

Share:

Popular Posts