Good morning FX traders! 🌍 Looking to start your day with an edge in currency trading? Here's the best way to read market sentiment every morning:
1️⃣Economic calendar: Begin by checking the economic calendar for scheduled releases of important economic indicators, such as interest rate decisions, employment data, inflation figures, and GDP reports. These events can shape currency sentiment. Compare overnight data to your previous session's baseline bias.
2️⃣Central bank communications: Monitor upcoming and review overnight statements, speeches, and press conferences from central banks, especially those of major economies. Central bank actions and policymakers' comments can heavily influence currency market sentiment. Here too, compare your new bias to previous baseline to see if anything has changed.
3️⃣Technical analysis: Utilize technical tools like support and resistance levels, trendlines, and Fibs to analyze currency pairs' price action. Patterns and key indicators like RSI, Stochastics or MACD can offer insights into market sentiment. Reading price action momentum is important in order to come up with the best trade ideas. TradingView makes this extremely easy!
4️⃣Sentiment indicators: Keep an eye on sentiment indicators specifically tailored for currency markets, such as the COT report (Commitments of Traders), which reveals the positioning of large traders in futures markets. It can indicate prevailing sentiment. You can also use Central Banks odds trackers (such as FEDwatch), the FEAR/GREED meter and your own risk reading markers (I mostly use equities, Yen, commodity currencies and bond yields).
5️⃣News wires and social media: Follow trusted news wires and forex-focused social media accounts to stay updated on geopolitical developments, breaking news, and market chatter. This can provide valuable context and sentiment analysis, especially if you cannot afford a squawk service.
Remember, currency market sentiment is influenced by a multitude of factors. Stay well-informed, evaluate various sources, and trust your own analysis. Adapt swiftly and make prudent trading decisions. Wishing you profitable trades this week!
1️⃣Economic calendar: Begin by checking the economic calendar for scheduled releases of important economic indicators, such as interest rate decisions, employment data, inflation figures, and GDP reports. These events can shape currency sentiment. Compare overnight data to your previous session's baseline bias.
2️⃣Central bank communications: Monitor upcoming and review overnight statements, speeches, and press conferences from central banks, especially those of major economies. Central bank actions and policymakers' comments can heavily influence currency market sentiment. Here too, compare your new bias to previous baseline to see if anything has changed.
3️⃣Technical analysis: Utilize technical tools like support and resistance levels, trendlines, and Fibs to analyze currency pairs' price action. Patterns and key indicators like RSI, Stochastics or MACD can offer insights into market sentiment. Reading price action momentum is important in order to come up with the best trade ideas. TradingView makes this extremely easy!
4️⃣Sentiment indicators: Keep an eye on sentiment indicators specifically tailored for currency markets, such as the COT report (Commitments of Traders), which reveals the positioning of large traders in futures markets. It can indicate prevailing sentiment. You can also use Central Banks odds trackers (such as FEDwatch), the FEAR/GREED meter and your own risk reading markers (I mostly use equities, Yen, commodity currencies and bond yields).
5️⃣News wires and social media: Follow trusted news wires and forex-focused social media accounts to stay updated on geopolitical developments, breaking news, and market chatter. This can provide valuable context and sentiment analysis, especially if you cannot afford a squawk service.
Remember, currency market sentiment is influenced by a multitude of factors. Stay well-informed, evaluate various sources, and trust your own analysis. Adapt swiftly and make prudent trading decisions. Wishing you profitable trades this week!
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Posts are not financial advice.
bit.ly/willsbpa
Free Discord Secret Server for The Trading Mentor:
discord.gg/tXAcxFVCJU
thefxmentor.com/
Posts are not financial advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Learn how to trade professionally FREE:
bit.ly/willsbpa
Free Discord Secret Server for The Trading Mentor:
discord.gg/tXAcxFVCJU
thefxmentor.com/
Posts are not financial advice.
bit.ly/willsbpa
Free Discord Secret Server for The Trading Mentor:
discord.gg/tXAcxFVCJU
thefxmentor.com/
Posts are not financial advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.