oussama94
05-29-2017, 00:15
For fundamental or technical traders, the importance of economic
data cannot be underestimated. Even though there are many people
who claim to be pure technicians, through my years in the **
market, I have to come to realize that nearly everyone will factor economic
data into their trading strategies. A good technician who focuses on range
trades, for example, may choose to stay out of the markets on the day that
a very market-moving number such as nonfarm payrolls (NFP) will be released.
A technical breakout trader, by contrast, may want to trade only on
days when there is important economic data to drive some sizable price action.
Incorporating fundamental analysis is particularly important for people
who trade automated systems, because turning on or off their strategies
based on incoming economic data can potentially have a big impact on the
overall performance of the trading strategy. Fundamental traders naturally
tend to thrive on economic releases, and the economic data that tend to
have the biggest impact on currency rates are U.S. data. Close to 90 percent
of all currency transactions are done against the U.S. dollar, which
means that the greenback is either the base or counter currency for most
transactions.
data cannot be underestimated. Even though there are many people
who claim to be pure technicians, through my years in the **
market, I have to come to realize that nearly everyone will factor economic
data into their trading strategies. A good technician who focuses on range
trades, for example, may choose to stay out of the markets on the day that
a very market-moving number such as nonfarm payrolls (NFP) will be released.
A technical breakout trader, by contrast, may want to trade only on
days when there is important economic data to drive some sizable price action.
Incorporating fundamental analysis is particularly important for people
who trade automated systems, because turning on or off their strategies
based on incoming economic data can potentially have a big impact on the
overall performance of the trading strategy. Fundamental traders naturally
tend to thrive on economic releases, and the economic data that tend to
have the biggest impact on currency rates are U.S. data. Close to 90 percent
of all currency transactions are done against the U.S. dollar, which
means that the greenback is either the base or counter currency for most
transactions.