Sunday, May 9, 2010

Fundamental Analysis Techniques.

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The basis of fundamental analysis is information. Information quickly, many and from a trusted source. Information you can use to analyze currency movements arising from:
1. Institutions of a country; you need to know the government policies have had on issues of economy, development of Political, Social and Security Affairs.
2. Print media, E-Media, and Television,
You sense in the current era, it is very easy to get the news. You no longer need to work hard. My suggestion is to get the news quickly is to:

  • Hop on some mailing list that discusses the economy of the United States and also lists the trader associations in your country.
  • Enroll your email address with the local media of a country, especially the United States, Europe and the UK, and of course also register your email to Forex sites for news that will be sent directly to your email.
  • Diligent up in the morning, look at television shows that showed the news - economic news and important issues of a country.
  • And many other possible ways you can find later.

Of the many information that you receive each day, you will be able to find a pattern or trend that look of a country. From the patterns, or news you received you can do fundamental analysis to determine the movement of currency.

An example, in July 2006 when Israel attacked Lebanon's government. Thus inhibition of crude oil supply to the entire world and this causes the price of world crude husband rose to near USD 80 per barrel. This husband price increase, causing the rising exchange rate against the dollar.

Analysis of an expert or consultant.


Although you are an expert you also have an obligation to listen to economic experts who stated when talking, even if it is contrary to your thought patterns. Use their ideas as your consideration in analyzing a currency fluctuations, but the mindset of the experts do not affect your own mindset as a determinant of the decision.

Character A market.

  1. Demand is bullish news, Bullish derived from the word 'bull' , they describe the nature of the market price movements look as if they will go down ... but actually it will go up (like a bull to gore the enemy movement, which is then thrown gore or more). Examples are Bullish news from the Reuter / print media: Inclement weather / storm / unfavourable, 3-6 conseccutive days up / firmer, Triggered Buying, Bottomside / bottomout, Buying Power, etc.
  2. Offers news is bearish, bearish derived from the word 'bear', it describes the nature of market price movements look as if they will rise, but actual prices will fall (similar to a bear movement gripped the prey ... that is lifted then slam). Examples are Bearish news from Reute/newspaper:

• Weather good / favorable, 3-6 consecutive days down / Easier (weakened).
• Lack of Demand (demand deficiency).
• Triggered Selling, capped topside (Peak has been reached), Harvesting.
• Selling Power, Ample of stock (stock abundance), etc..

You can found some website for this Analysis, Forexfactory.com. That is a greath website for Fundamental Analysis.
You can find out the effect of the news with this calendar. http://www.forexfactory.com/index.php?page=calendar
Characteristic of the impact of news:

1. NonFarm Payroll USA (efek 100 – 200 pips).
2. Trade Balance USA (efek 70 – 120 pips).
3. Interest Rate Statements (efek 100 pips).
4. Durable Good (efek 50 – 100 pips).
5. Producer Price Index (efek 50 – 60 pips)
6. PPI excl. Food and Energy (efek 50 – 60 pips)
7. Consumer Price Index (efek 50 – 60 pips).
8. CPI excl. Food and Energy (efek 50 – 60 pips).
9. Trichet, Bernanke, & Fukui Speaks (efek 30 – 100 pips).
10. Unemployment Rate (efek 30 – 50 pips

Technorati Calim :
7PUJQXDT2KTZ

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