Fundamental analysis is one of the techniques for analyzing price movements in forex trading , by looking at news and economic, social, and political events of a country, which will be or are being released. It is very important for traders to know about economic, social and political news and events in a country, especially in countries with major currencies.
How important is this fundamental analysis? Until now , it still continues to be an endless debate among traders. Some consider it important, but some consider it unnecessary.
There are some traders who don’t care about the fundamental factors in a currency price movement, because they believe that price history must repeat itself and the cause of price movements is market sentiment, no matter what news will be or is being released.
However, on the other hand, not a few professional traders actually think that this fundamental effect is very important, because the cause of volatile market sentiment is due to fundamental factors.
Some of the fundamental analysis techniques that are usually done by traders are to look at the forex factory site . The following is an explanation of what a forex factory is, and what is the importance of a forex factory for traders in forex trading.
WHAT IS FOREX FACTORY?
Forex factory is a forum site where traders from all over the world gather, as a medium for discussion about forex trading, trading techniques, strategies and sharing experiences. However, even though it is known as a forum site, in reality the forex factory provides other features in the form of important information needed by traders in conducting fundamental analysis and complementary technical analysis, as well as news on events in certain countries, which will be or are being released along with their impact. against the currency. So, for a long time the site has become an important part for traders and has become a mainstay, as one of the fundamental analysis tools and a complement to technical analysis.
IMPORTANT FEATURES OF FOREX FACTORY
There are several important features and services that are provided for free by forex factory sites for traders. What are the important features?
1. ECONOMIC CALENDAR
The economic calendar is the most popular feature used by traders. All economic news calendar schedules that will be and are being released, are displayed in a simple but still informative manner.
There is a lot of useful information that you can get on this economic calendar feature. In which country was the news released? What time was it released? How big is the impact on the price of the country’s currency? as well as other information related to the news.
FEATURES OF THE ECONOMIC CALENDAR
Information that explains in detail, in which country, when, what date and time the economic news was released.
How much impact can affect currency prices. By looking at the displayed folder color. Red has the potential for high impact , orange has the potential for medium impact , and yellow has the potential for low impact .
Detailed information on a news item that can be obtained by clicking on the yellow folder image, in the detail column when the news was released.
The actual value of a news released from current events.
The forecast value (image) of a prediction on a news to be released compared to the previous value which provides predictive information on the previous news.
Graph is information in the form of a graph that can be used as additional information in fundamental analysis as well as a complement to technical analysis carried out by traders.
2. MARKET SESSION
This feature describes which market session is currently open. The existence of this feature is very helpful for traders to determine what trading plan and strategy is right to use according to the market session that is currently open.
3. TRADE EXPLORER
In this feature you can see investors from abroad who are actively conducting trading transactions. This can be used to find references when you are about to execute orders according to your trading style. This information is a simplified version of what is displayed on the myfxbook.com site or other forex sites.
This feature can be accessed for free at the forex factory. However, for those of you who use this feature as a reference for the analysis you are doing, you should still use the right risk management and money management, so that you don’t experience big losses if it turns out that the results of your analysis do not match the actual price movements.
4. DISCUSSION FORUM, SHARING TECHNIQUES AND STRATEGIES
In this forum, many traders discuss forex trading which is very useful to add insight into the forex business you are in. Not a few experienced traders also share quality techniques and strategies here, which you can take as additional references so that your trading skills get better.
In this forum you can also open a discussion about your trading style, so that traders who are members of this forex factory forum can participate in assessing and commenting on the shortcomings that exist in the techniques and strategies you use. So, you can fix it if it is a positive opinion in your opinion.
HOW TO SET THE CLOCK ACCORDING TO YOUR COUNTRY
To set the clock to suit the time zone in Indonesia is very easy to do, just by clicking on the clock display at the top right of the site.
Make the best use of this forex factory site as a medium of information that can be used as an additional reference in the fundamental analysis you are doing. Or it can also be used as a complement to technical analysis that is collaborated according to the analysis method you usually do. Absorb and understand well all the information displayed on this site, so that your ability to see fundamental news is sharper and more accurate.
Thus an explanation of the importance of the forex factory site for traders to be used as a reference in analyzing price movement. Hopefully useful and profit greetings!.