My Views And Understanding
I have come to understand that there are two types of traders. technical and fundamental
Technical Traders
These are traders who use indicators to make decisions about trades, such as when to exit or enter, there are thousands of different kinds of indicators but they usually fit into two groups.
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indicators that are based on moving averages with some math formula
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indicators that don’t move and are static that are based on a previous high or low like fibs or pivot, trend lines, support and resistance lines, etc.
Fundamental Traders
These are traders who use events to make decisions to trade with a short-term or long-term.
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Short Term Events like if a country increases/decreases interest rates that will usually move a currency pair anywhere from 3 days to several weeks depending on how big the rate change was.
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Lond Term Events like govt policy that will move a currency pair for months or even years.
What I’m going to teach is to use both technical analysis and fundamentals.
We will use a very simple indicator to determine the long-term fundamental trend. this way we don’t need to know the information that is driving this long-term trend.
We will spot it with technical analysis then adjust our trading accordingly and let the other 99% of traders that don’t understand forex pay us. 😂
Knowledgeable is a key thing to my trading system. Because I know the short and long-term fundamentals of any currency pair.