Been focusing more on fundamentals lately instead of just technical patterns.
Seems like most traders here stick to charts and indicators. Wondering how many actually dig into economic data and news for their setups.
What’s your experience mixing both approaches?
I stick to watching high-impact events on the economic calendar. Found out the hard way that trading against rate decisions is a losing game.
I stick to the basics - tracking major news releases that actually move markets.
Most economic data’s already priced in before we retail traders even see it. I focus on surprise announcements or central bank policy changes that create real volatility.
Combining both works well. Fundamentals keep me from trading against major trends, technicals nail down my entry timing.
Fundamentals dictate the larger market movements that technical analysis often overlooks. Central bank meetings, job reports, and GDP data create the momentum that breaks through support and resistance levels. Timing is crucial. While fundamentals indicate market direction, technicals help determine the right entry point. For instance, if the Fed adopts a dovish stance and the USD declines, I still wait for chart confirmation before making a move. Many avoid fundamentals because it requires effort, which is why it can be effective.
News moves price but charts show when to enter.
I stick to NFP and Fed meetings. Everything else gets too messy when you’re only trading part-time.
Started out purely technical my first few years. Charts were clean and simple.
Got burned during Brexit and some Fed meetings, so I added fundamentals. Now I check economic calendars religiously and actually read FOMC minutes.
Key is knowing which data moves your pairs. EUR/USD loves ECB drama and US jobs numbers. GBP pairs go nuts on inflation reports.
Fundamentals saved me from shorting USD during the 2022 rate hike cycle. Charts showed weakness but the Fed wasn’t done. Would’ve gotten crushed betting against that.
Still use technicals for entries but fundamentals keep me on the right side of the big moves.
I used to ignore fundamentals until it cost me big fighting central bank policy. Now I keep it simple. Interest rate gaps drive major moves. When one central bank is hawkish and another is loose, you get trends. Don’t focus on every data release. Look for what shifts rate expectations. Everything else is noise. I still use technicals for entries, but fundamentals keep me from getting crushed by the big picture.