Fundamentals vs Technicals – Which Drives Markets

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#609: Fundamentals vs Technicals – Which Drives Markets
In this video:
00:28 – Technical or Fundamental trading?.
01:05 – Example this week of why I am a technical trader.
02:40 – Interest rate announcement out of New Zealand.
04:07 – We profited from 5 Daily chart trades.
04:25 – Monthly Sell on the NZD/USD also hit the profit target.
05:44 – Brand New Forex Masterclass.
05:57 – Free 1 hour live Q&A Webinar.
07:06 – Blueberry Markets as a Forex Broker.
07:50 – Like, Share and Subscribe

Which came first? The chicken or the egg? Or in trading terms, fundamentals or technicals? Who's the winner, and which came first, and which is most important? Let's talk about that more right now.

Hey traders! It's Andrew Mitcham here, the owner of The Forex Trading Coach, with video and podcast number 609.

Technical or Fundamental trading?

So today really is the chicken-or-the-egg question. And as traders we look at all the technical charts, or we look at fundamental news events, or some people have a combination of both. Now, I'm certainly a technical trader. I'm going to share with you why I think that is the most important, but also I'm not saying that news is not important. It's just I think you need to develop, as a person, as a trader, and find out which one is best for you and why. Or maybe the answer is a combination of both. But I'm a technical trader.

Example this week of why I am a technical trader.

Now, here's a classic example. On Wednesday morning, my time, we were looking at the daily charts at the close of the Tuesday daily candle. And we do this every day, and we've done this for the past 16 years. So at the close of a daily candle at 5 p.m. New York time, we analyze the charts and we look at trades based off the daily charts for the new day.

And if you go and look at the close of Tuesday's daily candle, you would see many New Zealand-related pairs all showing massive NZD weakness. And we identified five trades as specific trades based off the daily charts, based on that NZD weakness. And they were the NZD/USD, NZD/CAD, NZD/CHY, AUD/NZD, and GBP/NZD.

Now, the last two have been Australian and Pound against the New Zealand. They were buys. The first three were sells, all looking for NZD weakness. So that's the technicals. We saw room to move for the profit target. We saw safety in our stop loss. And for what I look at and what we teach, we had everything setting up there as five excellent, high-quality trades off the daily charts. Now we come back to the chicken and the egg, and we come back to what was actually happening and why.

Interest rate announcement out of New Zealand.

Well, four hours into the new day, out of New Zealand here, we had interest rate announcements, and they were expected to drop the interest rate by a cut of 0.25, or 25 points.