About This Video
John Kicklighter validates the importance of both fundamental and technical analysis in trading. He shows how technical traders can use fundamentals in their trading strategy and fundamental traders use technicals on their own. John provides examples of when technicals would have been important to a fundamental trader (e.g. a breakout before a major news release) and when fundamentals could have cued in a technical trader (e.g. an economic release, fundamental announcement or risk appetite).
Discuss This Video:
Leave a CommentThanks for some amazing videos that you all maka available for us novice fx traders. I have made some amazing gains sense I have been participating in the webinars and putting into play some strategies shown by dailyfx. I would like to participate in the 2011 fxcmexpo. Where will it be held and which days? Thanks and keep up the good work.
Best,
Keith
@Keith
We’re happy hear that the videos have helped with your trading. There are tentative plans to hold an expo in Las Vegas in April 2011. We will work to have details available on the expo page as soon as possible so you can start making arrangements if you plan to attend.
Jason Rogers
FXCM
hi great video…….some nice concepts aswell and confluence of both analysis is a very good topic to choose….i have one question i have heard from alot of sources that one can after experience achieve a level where he or she can create consistent result, my question is how can one achieve the level of consistent success from some events that are random in nature don’t you think its a paradoxical statement making consistent results from some random events……..regards
It would be true that trying to draw consistent profit on a random event would inherently be doomed. However, market development is not random (though it is not as calculated as most traders believe either).
Consider the scenario where we see interest rates on one currency is exceptionally high while on another it is very low; and financial conditions are generally stable or improving. Modest fluctuations aside, there will be a strong tendency for the market to follow the carry between this pair over time (selling the low yield currency and buying the high yield currency). This is a natural flow for capital.
Along similar lines, if the markets and its catalysts were completely random; technical analysis would show absolutely no value. Yet, many successfully apply various brands of this analysis technique on the basis of repeatable patterns or unique price events. In fact, I believe a lot of these conditions are met as a self-fulfilling prophecy reaction.
Now, if you are speaking about scheduled event risk specifically; the random nature of this scheduled driver is higher. On the other hand, the market once again skews it so it is not all that haphazard a reaction. Speculation ahead of an event often sees market participants favoring a certain outcome from important data. This prices in a bias and the subsequent release produces a distorted sense of probable outcome and reaction with the different scenarios. So, if you know everyone is expecting a better than expected outcome; a disappointment will have a more profound effect on price while a number that is higher than consensus will be muted in terms of impact.
-John