Essentials Of 'Forex News & Analysis'

timsk

Legendary member
6,850 1,773
#1
Welcome to the Essentials of 'Forex News & Analysis' Sticky. ‘Essentials’ Stickies are threads that are ‘stuck’ to the top of a forum index. They contain information about the forum you’re in that is of critical or ongoing value - hence the ‘Essentials’ name. If there’s anything missing from this Sticky that you hoped or expected to find, please contact timsk, T2W Content Manager and, if at all possible, it will be added.

NB:
The structure of the forums was completely overhauled in August 2012, resulting in a much simpler layout which is easier to navigate. In the case of Forex, there used to be three separate forums; whereas now there is only one. A consequence of this is that the ‘Essentials’ Stickies are out of date and will be amended in due course. In the meantime, we have left them in tact as they contain information and ideas that are of value to members. We apologise for any confusion caused and trust that you will bear with us through this period of transition. Thank you!


What is the Forex News & Analysis Forum?
This section discusses why news is so important and outlines how members can factor news and reports into their trading. If you’re a contributor of forex news or analysis to this forum, please remember that as per the T2W Site Guidelines, advertising of any sort, such as direct linking, will not be tolerated. Thank you.

Other Resources on T2W & Beyond
The nature of this forum is such that many of the contributors to it are commercial organisations who post free market reports and analysis with the hope that you find your way to their website and purchase their products or services. However, there are a few resources beyond the forum itself that enable members to obtain free and accurate news about the forex markets. Here, you will find links with a short précis about contributions to the Articles section as well as some useful websites.

What is the Forex News & Analysis Forum?
The forum contains daily market news, reports and analysis from a variety of sources. Information is king and understanding the news and market reports may well add significantly to your trading ‘edge’. Why? In a word: volatility. Within minutes of a news announcement, the currency pair affected could move 50 to 100 pips. Very nice if you’re on the right side of the move, not so nice if you’re not! Either way, one thing is for sure, news moves the forex market. Even if you don’t trade the news yourself, it is wise at least to be aware of when major news releases are expected, so that you’re not caught off side in a market moving against you with strong momentum.

Traders have three options available to them as far as news is concerned:
1. They can be aware of when the major announcements are due and choose to be ‘flat’, i.e. they are not in the market when the news breaks. Their strategy is to sit on their hands and do nothing until the hullabaloo subsides.
2. The second option is to be flat at the time of the announcement and watch how the market responds to the news. They then trade the reaction to the news, as opposed to 3, below, where they attempt to trade the news itself.
3. Lastly, they can take a view of what the news is likely to be and then position themselves in the market ahead of the announcement. If their research and opinion are correct, they stand to earn lots of pips very quickly. Needless to say, if it’s wrong, they could lose heavily. Remember too, that if they’re long the market and it falls suddenly on a news announcement, their stop will be triggered, but they run the risk of receiving a very poor fill to close out the trade. This is because they are sellers in a fast falling market in which buyers are very thin on the ground.

Clearly, in terms of risk, option one is by far the safest. Option two carries greater risk, while option three is by far and away the riskiest approach of the lot. It will not only require great trading skill and expert knowledge, but nerves of steel as well. Suffice it to say, it is not a strategy recommended for beginners! Whichever strategy one adopts, the common denominator is to know when the major news announcements are. The table below indicates when news announcements are usually made. It's not comprehensive, but instead focuses on the top eight countries, based upon the size of its country’s economy, the liquidity of the currency and the frequency of the news releases.

FX Symbols & Times.png

Other Resources on T2W & Beyond
The main resource beyond this forum on T2W is the Articles section which can be accessed via the ‘Articles’ tab mid way along the red menu bar at the top of the page. There are lots of excellent contributions for FX traders, with two articles in particular that relate specifically to news and analysis.

T2W ARTICLES
Ignore Stock Market Talking Heads
Although the focus of this article by Chris Perruna is more on trading stocks than on forex, the principles that he discusses still apply. Beware of the talking heads on TV!

Interview with a Professional Forex Analyst
If you’re going to pay any attention to forex analysts, it’s not a bad idea to get an insight into their world and find out how they work. Here, John Foreman - who is ‘Rhody Trader’ here on T2W - and a professional analyst with Thompson Reuters, does exactly this.

WEBSITES
Bloomberg.com
Reuters.com
CNNMoney.com
These are three of the best known providers of news for the financial industry. As you would expect, all three of them are huge sites that cover just about anything that’s going on in the world.

Forex Factory's Calendar
This comprehensive news calendar is a good tool for the FX trader, and includes a simple graphic to indicate the likely impact of an announcement.

Market News International
This is a subscription based site whose reporters “. . .work like journalists but think like traders. When they’ve got a Fed official in an interview, they ask the same questions you would ask. Cover the same angles you would cover. Write the way you want to read.” Or so they claim!

FX Week
This is a subscription bases weekly newsletter aimed primarily at forex and money market professionals working in banks, brokerages and other financial institutions.

AshrafLaidi.com
Author of ‘Currency Trading and Intermarket Analysis’, Ashraf Laidi’s site offers up to the minute analysis of the forex market, along with some useful articles, forum and links.

If you know of any resources either here on T2W or beyond that would be of interest and value to members who want to learn more about forex news and analysis, please contact timsk, T2W Content Manager and, if at all possible, they will be added.
 
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#2
Nice information. To sum up, I would say:
When using Forex charts, the best way to trade is not to predict in advance but to trade the reality of breakouts to new highs and lows on a Forex chart. All big trends start and continue from breakouts, so by buying significant breaks of resistance and selling breaks of support, you can make a lot of money.
 

malaguti

Senior member
2,272 424
#3
Nice information. To sum up, I would say:
When using Forex charts, the best way to trade is not to predict in advance but to trade the reality of breakouts to new highs and lows on a Forex chart. All big trends start and continue from breakouts, so by buying significant breaks of resistance and selling breaks of support, you can make a lot of money.
Thats funny, as no way could I have summed all that up by stating that a trend starts with a breakout. In fact "breakout" and "trend" didnt even occur. However, I would go along with what you say.
 

fxstrategist

Established member
577 15
#6
Economic Calendar

I think that the Forex FActory economic calendar is the easiest to use and understand. They even have a detail explanation of how the event affects the currency.
 
#7
The dollar USDJPY, -0.80% traded at ¥118.7710 in recent trade, its highest level against the yen in a week, down from ¥117.81 Monday afternoon.

The U.S. dollar USDCAD, -0.11% traded as high as 1.2115 Canadian dollars, compared with 1.20 Canadian Monday.
 

SmartGeek

Active member
206 6
#9
That's quite a nice article, thanks for sharing it here, it would help lots of newbies to learn the importance of the news & analysis.
 

SmartGeek

Active member
206 6
#10
Yes, Forex Trading is quite a nice way to earn some good money online. If you wanna become successful in Forex Trading, you need to have lots of practice to improve your trades.
 

SmartGeek

Active member
206 6
#12
I Prefer Technical Analysis, but I am on a short break right now. Suffered too much loss and now I am here to learn more about Forex Trading.
 

SmartGeek

Active member
206 6
#13
Yeah, and this strategy would be able to yield much profits, but not every time. So I would prefer you to change the strategies from time to time or just modify it, if you wanna become a successful trader.
 

NVP

Legendary member
36,148 1,760
#15
What tools are you guys prefer to use in your trading analysis? technical or fundamental ones?[/QUote

Fundamentals are an interesting subject but I wouldn’t waste too time on them apart from learning the basics

It’s all about thé technical stuff ......markets move so fast

N
 

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