How to View and Forecast the Market: Forex Fundamental Indicators
4/5
()
About this ebook
The book describes in detail the main macroeconomic indicators and fundamental factors which influence quotes on the foreign exchange market. It tells the reader about the central banks’ main monetary policy instruments and the extent of their impact on the formation of currency rates.
The author reveals the psychological nature of Forex market participants’ reaction to economic news and also gives traders important recommendations on using fundamental data for successful trading. The author uses concrete examples to illustrate the connection of the Forex market with other financial and commodity markets.
This book is aimed both at beginner traders and professionals, who wish to improve their skills of predicting the dynamics of currency rates and planning trading operations.
Read more from Kostyantyn Kondakov
MetaTrader 4: Learn to Earn in FOREX Rating: 4 out of 5 stars4/5The Psychology of Trading or How to Tame the FOREX Market Rating: 4 out of 5 stars4/5
Related to How to View and Forecast the Market
Related ebooks
Forex Trading: Part 1: Time and Price Strategy Rating: 5 out of 5 stars5/5Tested Forex Strategies Rating: 5 out of 5 stars5/5Forex Trading for Beginners: A Beginners Guide to Proven Forex Trading Strategies Rating: 0 out of 5 stars0 ratingsForex Direction Strategy Rating: 0 out of 5 stars0 ratingsThe Ultimate Forex Trading System-Unbeatable Strategy to Place 92% Winning Trades Rating: 4 out of 5 stars4/5Forex Trading: Part 3: The Relevance of Price Rating: 5 out of 5 stars5/54 Keys to Profitable Forex Trend Trading: Unlocking the Profit Potential of Trending Currency Pairs Rating: 5 out of 5 stars5/5Think Like a Whale Trade as a Shark Rating: 3 out of 5 stars3/5Tested Forex Strategies And Advanced Technical Analysis For Forex Rating: 5 out of 5 stars5/5Sentiment in the Forex Market: Indicators and Strategies To Profit from Crowd Behavior and Market Extremes Rating: 2 out of 5 stars2/5Profit From Forex Price Action: Proven Strategies For A Profitable Trade Rating: 4 out of 5 stars4/5The Sensible Guide to Forex: Safer, Smarter Ways to Survive and Prosper from the Start Rating: 5 out of 5 stars5/5Forex Trading: Trading, #1 Rating: 5 out of 5 stars5/5Forex Trading Blueprint: A Comprehensive Guide to Building a Profitable Trading Strategy Rating: 0 out of 5 stars0 ratingsForex for Beginners: A proven step by step strategies for makng money in forex trading Rating: 4 out of 5 stars4/5Pervert Trading: Advanced Candlestick Analysis Rating: 2 out of 5 stars2/5Forex Secrets: Successful Scalping Strategies from the Dark Side Rating: 4 out of 5 stars4/5Forex Trading: Two round number strategies Rating: 5 out of 5 stars5/5Forex Trading Secrets! Discover All of The Insider Techniques To Gain Great Success On Forex Market Rating: 0 out of 5 stars0 ratingsTramline Trading: A practical guide to swing trading with tramlines, Elliott Waves and Fibonacci levels Rating: 3 out of 5 stars3/5Technical Analysis: Forex Analysis & Technical Trading Basics: Forex Trading Success, #4 Rating: 1 out of 5 stars1/5THE INTERNATIONAL FX MARKET Rating: 0 out of 5 stars0 ratingsForex for Beginners: The Most Comprehensive Guide to Making Money in the Forex Market (2022 Crash Course for Newbies) Rating: 0 out of 5 stars0 ratingsIntelligent Investor: Trading, #3 Rating: 0 out of 5 stars0 ratings
Foreign Exchange For You
Scalping is Fun! 2: Part 2: Practical examples Rating: 5 out of 5 stars5/5MT4/MT5 & TradingView High Probability Forex Trading Method Rating: 4 out of 5 stars4/550 Pips a Day Forex Strategy Rating: 4 out of 5 stars4/5Swing Trading using the 4-hour chart 1-3: 3 Manuscripts Rating: 5 out of 5 stars5/5The Talking Chart Rating: 4 out of 5 stars4/5Forex Trading - The Basics Explained in Simple Terms Rating: 4 out of 5 stars4/5Cryptocurrency Trading Guide Rating: 5 out of 5 stars5/5Currency Trading For Dummies Rating: 5 out of 5 stars5/5The Art of Currency Trading: A Professional's Guide to the Foreign Exchange Market Rating: 5 out of 5 stars5/5High Profit Price Action Trading for Beginners Rating: 2 out of 5 stars2/5Understand Banks & Financial Markets: An Introduction to the International World of Money & Finance Rating: 4 out of 5 stars4/5Gann Square of 9 : Simplified Rating: 5 out of 5 stars5/5How to Turn $ 5,000 into a Million Rating: 4 out of 5 stars4/5Master Trading the Financial Markets: Trade with the Best Rating: 5 out of 5 stars5/5Earning Money through Crypto Currency Airdrops, Faucets, Cloud Mining, Online Trading and Online Advertisements Rating: 0 out of 5 stars0 ratings40 Affirmations For Traders Rating: 3 out of 5 stars3/5Bitcoin: The Ultimate Bitcoin Guidebook For Beginners Rating: 4 out of 5 stars4/5Inflation: What It Is, Why It's Bad, and How to Fix It Rating: 4 out of 5 stars4/5William D. Gann's Simplified Stock Market Theories Rating: 4 out of 5 stars4/5Short Intro To Forex Trading Rating: 0 out of 5 stars0 ratingsThe Truth About Technical Analysis to Win on the Stock Market Rating: 0 out of 5 stars0 ratingsDay Trading EUR/USD, M5 Chart Analysis +1000% for One Month ST Patterns Step by Step Rating: 5 out of 5 stars5/5Forex Trading Beginners Guide to High Profits Rating: 0 out of 5 stars0 ratingsHow to be a Disciplined Forex Trader Rating: 0 out of 5 stars0 ratings
Reviews for How to View and Forecast the Market
8 ratings2 reviews
- Rating: 5 out of 5 stars5/5I have always been a person who loves to makes sense of the fundamentals of things.The Investment world is definetly one of those area where I want to know the Mechanics of what is really creating the outcome we normally see on the screen.
I have always been a scientist at heart and I remember a video of Elon Musk suggesting people should always accustome themselves to thinking in the basis of first principle.This book has provided for me the full picture of what the candle sticks mean for me as I am staring at the screen.
It is a must read for anyone who wants to make sense of the pandemonium in the market. - Rating: 3 out of 5 stars3/5This book explains many fundamental important factors that Influence the currencies.
What it doesn’t do is to forecast or summarize all economic indicators to gauge the economic growth what is important to trade trends.
Worth reading but no real edge.
Book preview
How to View and Forecast the Market - Kostyantyn Kondakov
Author’s Note
I am delighted to be with you again in the pages of my new book, and for those holding my book for the first time – it is a pleasure to meet you!.
I decided to publish this book for those who have made a serious decision - as I did once – to understand what the foreign exchange market is and learn how to make money on it.
While my first book MetaTrader 4 – Learn to Earn in FOREX
is more like a high school diploma and an investor’s handbook for overseas traders, this book is like a college degree, and I have decided to share the knowledge to help those who are looking for their path in life.
Regrettably, publishing a book does not bring any real profit in this country and I have had to defer more lucrative activities in order to write it, but my desire to do some good and help is my real vocation and mission and that is why everything has worked out well! I do not live for the sake of money – God leads me and it was His will that I should pass my knowledge on to you.
Before you start reading the book, let me give you some advice – study everything with a pure and open heart, do not let greed and covetousness get inside you, and you will discover the true knowledge that will allow you never to worry about money again!
As to the book itself:
Listen mate, it’s not the most exciting of the subjects…
– my friends shook their heads, smiling in response to my idea of writing a book on fundamental indicators of the foreign exchange market. The reaction of people who know me well, and know what Forex trading means to me, was quite eloquent.
The majority of people think that trading in the exchange market is similar to a walk through a mine field with pots of gold thrown about, and in order to get that pot of gold you need to be as wise as Solomon, have a PhD in economics and, moreover, be extremely lucky.
Of course, I understood the sarcasm of my conversation partners and their doubts and even agreed with them somewhat. There was a time when it was very boring for me to plough through wilderness of professional terms and dreary statistics.
However when dipping into the depths of macroeconomics, I realised that this subject is surprisingly exciting. The Forex market is not chaos theory - it is the practice of resounding victories. Spicy details regarding consumer prices, scandals around industrial production, exposing facts about interest rate decision making, constant dynamics, emotional whirligig, intricate mind games – all this would fascinate even the most indifferent of us!
This book is for people who are still undecided on a method of market analysis, and who have little or no experience in the field of economic statistics.
I would like to tell you about the most significant world economy indicators in plain language and an interesting way as well as to ignite a winner’s fervour in you.
Do you still think of a trader’s job as something to do that is dry, boring and devoid of creativity? But who is to stop you from turning Forex trading into something you love and something you are crazy about? No one but you! So welcome to the world of currency trading, a world of rational and creative people, where you will surely find yourself a place!
Konstantin Kondakov
1. Market Trading Requires Analysis - Fundamental or Technical one? That is the Question
1.1. Analysis – a Breath of Life for Trading
These days you won’t get raised eyebrows by mentioning currency trading. This type of activity is growing more and more popular and it is unmatched by any competition in the field of earning on the Internet. The sheer scale of the foreign exchange (Forex, FX) market simply blows your mind! Just imagine, the daily turnover of the world currency exchange constitutes about three trillion dollars! It is no wonder that trading attracts so many participants.
It should be noted that in the last two decades the financial market has gone through radical changes. The main reason for this has been the rapid speed in the progress of information technology. Previously the job of a currency trader was clouded in mystery and was considered to be available only to a chosen few. Now anyone can become a trader.
However the size and availability of currency trading are not a ready formula for success. Only the few who realize that you will not achieve the expected results without dedication and effort can count on the effectiveness and profitability of this business.
A trader coming into currency exchange and looking to earn decent money has to understand that the Caesar’s I came, I saw, I conquered
will not work if you do not add one more crucial item to that – I analysed
. It may not sound too inspiring but it is the harsh reality. Trading without analysis – at random or on a hunch – will eventually lead a trader to a fiasco on Forex.
It’s no secret that the successful Forex trading is based on the ability to make weighed-up and reasoned decisions. However let us agree that it is simply impossible to do that without full and accurate information regarding currency fluctuations; analysis will help you obtain this information.
Currency rate dynamics is primarily determined by the demand and supply ratio; if the demand for a currency exceeds the supply then that currency rises - which is why traders use these two key factors to forecast currency rates. However, it is hard to predict their movement since there are numerous circumstances that influence demand and supply in the currency exchange.
1.2. Types of Analysis
There are two major methods used to forecast price movements in the market; two essentially different philosophies – fundamental and technical analysis.
Despite the fact the approaches are the complete opposite of each other, they both have the same purpose – to determine the direction of further price movement. The difference is that supporters of fundamental analysis rely on the factors that drive the market while the supporters of the technical one base their actions on the analysis of temporary sequence of data and related graphic images.
It is very hard for a beginner trader to decide which method to use; technical or fundamental. Technical analysis is at least somewhat easier to understand and you can find some regular patterns (e.g.