In every business and investments, the key of our success are 75% laid on how good we do our forecating to decide ‘what to do next’. Dealing with such of stochastic state as in the forex market, we should develop what’s the most effective forecasting methods suits to our trading system and strategy.
Forex market is all about the currency exchange rate prices. For traders, key to approach the currency exchange rate prices are divide into the technical analysis and fundamental analysis aspect.
Most traders, especially those who day trading forex use technical analysis approach as its easier to logically accepted as they use numbers to count the probability. Technical analysis gives an ease for traders to decide whether they trade or not, buy or sell by giving the results as an exact numbers to be followed up. Fundamental analysis is just too complicated and not particularly important to be included in their forex trading system.
I just feel sorry for them as they just letting away their opportunity in make more profits from their EVEN EASIER TRADING by involving the fundamental analysis to do a decission making in their forex trading system. Fundamental analysis isn’t complicate at all. In this article, I want to show you that by analysing just one of so many particular aspect of the fundamental, we could take a huge advantages from it.
In every particular currency, there is a kind of repetitive behavioral of the ‘forced’ prices movement that will gonna exactly occurs again and again. We just have to understand what kind of aspect which affecting the currency prices from a particular country, especially in how the government dealing with some condition that make them interference the currency rate prices concerning to their economic policy.
Let’s take example at the Japanese Currency (JPY). Japan’s government has some economic policy which called as dumping politic. According to that policy. they have to forge a condition which make their products prices — which tightly related to their currency rate prices — are not to high to be exported. Thats resulting in their government action in interference to force the currency rate prices to move back whenever its became ‘outside the neutral zone’.
When a currency interference occurs, the most traders – which usually trade based on the technical analysis based trading system are unable to respond this events as quick as those who do a kind of trading system which alike with mine. And loose their chance to make a profits.
How to Examine the Currency Interference
Like most expert says, forecasting a more an art than a science. I can’t exact show you the way i do my ‘fundamental-involving’ trading system. But the key factor of it is to use the currency prices chart. The interference can be examined by closely examine the currency chart. Just watch the chart of currency pairs chart (ie. USD-JPY) carefully. As for me, I find this pattern within 3 weeks and start continuously make a profits from it (not huge – but its still count as a profit, more profits). Find that pattern and experience it by yourself. At last, I’m sure that you’ll gonna be agree with me on how easy using the fundamental analysis in our trading system.
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