Forex News Trading – Fundamental Analysis & Technical Analysis

I get asked a lot about how to trade the news and how to profit from news releases in the Foreign Exchange market. At the same time, I get lots of challenges from pure technical analysis traders who dismiss everything about news as if it is almost like blasphemy against the technical analysis religion to even consider something outside of charts and candlesticks… 

I can’t say for anyone else, but this exact type of thinking got me into trouble in the first place when I was starting my trading career.  I had to re-learn things the hard way. Still, I often wondered, if I were to start over, it would be no doubt that I would be studying BOTH technical AND fundamental analysis instead of avoiding it (fundamental analysis, news releases, etc…) like a plague.

This is not a challenge for those who are purely technical analysts or chartists.  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, we traders are not idealists defending a principle; we are capitalists seeking profits.  If a modification brings you more winning trades, why not use it?

While I am not going to get into defining either fundamental or 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 an understanding of the entire framework of the market will help you generate profitable trades, day after day, weeks after weeks, and months after months.

Please observe 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 it, please retweet it if you use Twitter, or share it on your Facebook.  Help me pass the word out so I can make more videos like this in the future…  Thank you!