How to use Fundamental Indicators to make trade decisions

Now you know how important Fundamental Economic Indicators are! So much that a key announcement can send your technical analysis tumbling the wrong way. The challenge however is to keep abreast with all of these indicators. The indicators are not the only determinants of currency pricing. There are third-party reports, technical factors, and many other things that also can drastically affect a currency's valuation. Here is how you can conduct fundamental analysis.

  • Use an Economic Calendar that keeps track of all important fundamental indicators.

    How to read a Economic Calendar?

    Economic Calendar
  • Watch those indicators that have a high importance. You can learn the level of importance for indicators using a economic calendar.
  • Watch market expectation vs. actual values for key indicators such as interest rates, inflation, unemployment and others to capture large swings.

    Swing trading
  • Know how to trade news. Its important hot to react too quickly to the news. More often than not numbers are released and then revised, and things can change quickly. Trade news intelligently.

    News trading strategy

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