Introducing Fundamental analysis

 What is fundamental analysis

Forex fundamental analysis is a technique used to analyze financial markets in order to identify trends and make informed investment decisions. The basic premise of forex fundamental analysis is to look at a currency's fundamental value, which includes its intrinsic worth, its inflation rate, and its current market demand.

When analyzing a currency, forex fundamental analysis considers the following factors:

Intrinsic value: The intrinsic value of a currency is the sum of its individual parts, which includes its gold and silver reserves, its currency base, and its economic stability.

Inflation rate: The inflation rate is the percentage increase in the prices of goods and services in the general economy.

Market demand: The market demand for a currency is the number of units of that currency that are currently being traded on the open market.

A currency's fundamental value is always relevant, as it can provide an indication of how strong the currency's demand is and how likely it is to maintain its value.

Why is Fundamental analysis is important?

Forex trading is an ever-changing market that can be volatile and unpredictable. Fundamental analysis is a process used to identify factors that will influence the price of a security. This analysis can help traders make informed decisions that will help them make more money.

When you use fundamental analysis, you are looking at the health of the market, the economy, politics, and other factors that will impact the currency. By understanding these factors, you can make better predictions and make more informed decisions when trading currencies.

There are a number of reasons why fundamental analysis is important.

1) Fundamental analysis can help you determine if a currency is overvalued or undervalued.

2) Fundamental analysis can help you determine if a currency is in an uptrend or downtrend.

3) Fundamental analysis can help you determine when a currency is about to make a move.

4) Fundamental analysis can help you determine when a currency is about to crash.

You don't need a finance degree to do fundamental analysis, its not as complicated as it sounds. It might look difficult at first but once you get it its that simple. Always remember that fundamental analysis does not mean 100% strike rate, but it means high probability and a massive edge to the capital markets

Why  combining Fundamental and Technical analysis can be useful

Of course fundamental analysis by itself  can be tricky but implementing Technical analysis as a trade management approach is a game changer.

As previously discussed, Forex fundamental analysis is a method of analyzing and forecasting the movement of currency pairs based on economic and political factors. Technical analysis is a method of forecasting the movement of stock, commodities, and other securities based on their prices, volume, and other technical factors.

When used together, forex fundamental analysis and technical analysis can provide investors with a powerful tool for profiting from the fluctuations in currency and stock markets. While each approach has its own strengths and weaknesses, when used together they can provide a more comprehensive view of the market and help investors make informed investment decisions.

In general, forex fundamental analysis looks at the long-term trends of economic and political conditions in a given country or region. This information can be used to predict the future direction of currency and stock prices.

Technical analysis, on the other hand, focuses on short-term price movements. This information can be used to predict which assets will experience the most growth or decline in the near future.

So when you determine value of an asset or currency, it becomes easier to look for an Execution point using different technical analysis strategies. Here we use ICT concepts as our core technical analysis concepts. Trading was never the same once we combined the two.