This will discuss about Fundamental Traders’ Forex Signals. It describes how fundamental traders will benefit from Forex signals. When they are provided with technical analysis based signals, it is the other half of a complete analysis.
It’s also the explanation that underpins certain moves that don’t follow the simple logic. But it will also address why Forex signals are useful to technical traders.
Fundamental Forex Signals
For technical traders one of the most evident advantages of Forex signals is the fundamental analysis on which many of the signals are based. Many traders who use only technical analyzes to trade Forex leave out the other half of the larger picture when making decisions.
Technical analysis could show a perfect opportunity for a textbook which a skilled trader would naturally be willing to take. But in an moment, only one piece of data, or economic news, or a political event can turn things around. Finally, you end up losing a lot of money.
You get the technical analysis in the form of a package with several Forex signals. Here, the use of both fundamental analysis and technical analysis are useful when issuing our signals.
Milking the Large Moves
Technical analysis shows many good trading opportunities and entry points. But, the timing of the exit points it suggests is often premature. With fundamental analysis and fundamental Forex signals, you optimize the advantages of a successful trade by holding it open until the fundamental shifts and that situation has gone its full course.
Oversold/overbought rates are always reached too early by the technical indicators. It means a technical trader must close the position. A very good example is the one-year EUR/USD sale exchange. If you sold this pair as a technical trader at the top about 1.40 in May 2014, you’d get out at 1.24-25, because that’s where the technical indicators informed you to exit.
That was a high degree of support; the 200-MA that had previously reversed the price was right there. As a doji, the monthly candlestick was closed. The stochastic was well overbought and the RSI was almost overbought. But, the story had revealed in the fundamental review. The ECB vowed to launch the QE program and cut interest rates the following year, as the FED entered a tightening process.
According to the technicals, a trader must have closed the gap at 1.24-25. It means it is less than half of the overall downward movement. As you can see the price went down to about 1.0450 for another 20 cents. So a technical trader can fully milk the large moves with fundamental Forex signals.
