Forex News Trading – Fundamental Analysis & Technical Analysis

I get asked a lot about how to trade the news, how to profit from news releases in the Foreign Exchange market, and at the same time, I get lots of challenges from pure technical analysis traders who just dismiss everything about news as if it is almost like a blasphemy against the technical analysis’ religion to even to consider something  outside of charts and candlesticks…  I can’t really say for anyone else, but this exact type of thinking is what got me into trouble in the first place when I was starting out my trading career.  I had to re-learn things the hard way, but I often wondered, if I were to start over, it would be no doubt in my mind that I would be studying BOTH technical AND fundamental analysis, instead of avoiding it (fundamental analysis, news releases, etc…) like a plague.

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For those who are pure technical analysts, or chartists, this is not a challenge.  I know what you’ll tell me, that anything news can tell me, your charts will tell you as well.  But I guess the bottom line is timing, and if you missed the right entry timing, you are looking at a difference between winning or losing trades.  Therefore, why not use everything at your disposal?  After all, us traders are not idealists defending a principle, we are capitalists seeking profits.  If a little modification brings you more winning trades, why not use it?

While I am not going to get into defining neither fundamental nor technical analysis in this video, I’m going to point out how to use both methods to trade the market so that you can understand the value of seeing the market in its entirety, in the context it is meant to be in.  And having understanding of the entire framework of the market, will help you generating profitable trades, day after day, weeks after weeks, and months after months.

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Please watch carefully as I analyze the market in this video, I explained the following:

  1. Retracement Method in News Trading
  2. The “personality” of USD/CAD
  3. The importance of psychological levels (i.e. parity) – Market Insight
  4. Technical Analysis – Support area for USD/CAD (2:28 “…we need to take out this area first”)
  5. Buy on Rumor & Sell on News effect (3:35)
  6. News Release (4:55) – Buy on USD/CAD called as fundamental analysis called for this action
  7. Buy order executed (6:00)
  8. Congestion area (stalling 8:00)
  9. USD/CAD “personality” explained in detail (8:10)
  10. Trade management – (9:18)

Thank you very much for watching this video; if you like this video, please retweet it if you use twitter, or share it on your facebook.  Help me pass the word out so that I can make more videos like this in the future…  Thank you!

About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

You can find more information about me on my Google Profile.

Comments

  1. Francisco says:

    Mr. Liu I just cannot thank you enough. you are officially a member of my trading group wall of fame in my office.
    I hope we can work together on june and have the honor to meet you in real life.
    take good care of that barin of yours.

  2. Hey Henry,

    Being listening and watching some of your videos regarding the News trading, it’s very relative to all traders.
    Being a newie, i like to learn from a mentor. May I know how can I join your trading rooms and see you trading
    live, would like to learn the rope from you.

    Appreciate your reply

    JH

    • JH:

      Right now I don’t have any openings, but if you wait until June, I may have something opening up. Signup for my newsletters, if I get anything in the meantime, I’ll make sure to send out an announcement.

      Henry

  3. patrick campbell says:

    Henry ,

    Can you coah me to make a living trading forex , i have tried everything but to no success

    Regards,
    Patrick Campbell

    • Patrick:
      My mentoring class registration is closed. Maybe wait for the next class? I may have something in the works in June, but right now my priority is to work with current class (they graduate in June) and make sure they have my undivided attention. So signup for the newsletter and look out for my future email.

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