Fundamental Analysis
You'll Master: Deep dive into economic calendars and long-term market drivers.
Why Fundamental Analysis?
Understanding the economic forces behind price movements helps you anticipate trends and make informed trading decisions. Fundamental analysis focuses on the "why" behind the charts.
1. Economic Calendars
Stay Ahead of the News:
Economic calendars list upcoming events and data releases that can move the markets. Knowing when these occur helps you plan trades and manage risk.
Key Actions
- Track high-impact events (NFP, CPI, interest rates)
- Set alerts for major news releases
- Adjust your trading around volatile periods
2. Long-Term Market Drivers
See the Big Picture:
Major trends are shaped by factors like economic growth, central bank policy, and geopolitical events. Recognizing these drivers helps you align with the market's direction.
Examples
- GDP growth and recession signals
- Central bank interest rate decisions
- Political elections and trade agreements
3. Combining Fundamentals & Technicals
Best of Both Worlds:
Use fundamental analysis to set the context and technical analysis to fine-tune entries and exits. This balanced approach can improve your trading accuracy.
- Check the economic calendar before technical setups
- Use fundamentals to filter trade opportunities
- Stay flexible—news can override technical signals
4. Fundamental Analysis Checklist
- ☑️ Review the economic calendar daily
- ☑️ Identify key market-moving events
- ☑️ Analyze central bank statements
- ☑️ Monitor global news for surprises
- ☑️ Combine with technical analysis for trade decisions
Practice Zone
Homework:
- Bookmark and review a reliable economic calendar
- Track a major news event and observe its market impact
- Write a brief summary of a central bank's latest policy statement
Next Step: Let fundamentals guide your strategy—trade with the bigger picture in mind!