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Central Banks. How They Are Thinking? - Forex Trading Strategy Q&A

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Need help becoming profitable? Watch this interview, where Jarratt reveals THE EDGE, which got him #2 ranking: http://www.jarrattdavis.com/forex-course How to Identify What Central Banks Are Looking at? As many of you know if you’ve been following me, I base most of my trading decisions around what the central bank is doing. What the central bank does will tell you which way the currency will go over the medium to short-term. To get an understanding of what the central bank is doing and how you find that information out is by looking at the economic calendar, and finding out when the central bank are speaking. Things like interest rate statements or policy statements are the first things you need to find. After the next policy statement has happened, you want to look at websites like Bloomberg to find an article summarizing that specific statement. Once you’ve read the article it will tell you what the central bank is looking for- for example, they might be looking at high inflation which could lead to them hiking interest rates, or maybe their economy is failing and they’ve hinted that they might take a dovish action by cutting interest rates etc. These are just simple examples however the analysis will tell you and keep you tuned in to what the central banks are thinking, and if you know what the central banks are thinking it will be much easier for you to make pips.
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Text Comments (13)
Brandon Williams (2 years ago)
so youre saying the banks only follow fundamentals? They don't follow technical analysis?
Hey everyone, I've put together a short video explaining  how to identify what central banks are looking for. As many of you know if you’ve been following me, I base most of my trading decisions around what the central bank is doing. What the central bank does will tell you which way the currency will go over the medium to short-term. To get an understanding of what the central bank is doing and how you find that information out is by looking at the economic calendar, and finding out when the central bank are speaking. Things like interest rate statements or policy statements are the first things you need to find. After the next policy statement has happened, you want to look at websites like Bloomberg to find an article summarizing that specific statement. Once you’ve read the article it will tell you what the central bank is looking for- for example, they might be looking at high inflation which could lead to them hiking interest rates, or maybe their economy is failing and they’ve hinted that they might take a dovish action by cutting interest rates etc. These are just simple examples however the analysis will tell you and keep you tuned in to what the central banks are thinking, and if you know what the central banks are thinking it will be much easier for you to make pips.
Muzing Nimzing (1 year ago)
And that's a dang huge achievement for any forex trader.
arsenalmanic (2 years ago)
Let me guess you were ranked as the 2nd best forex trader in the world by the barclays currency trading index. LOL!
mohd ramzam muda (4 years ago)
Thank you very much..very helping improve my trading..
James Vaughan (4 years ago)
Great stuff Jarrett. Fundamental trading is at last making a lot of sense.  
Ernest Cilia (4 years ago)
Great stuff.  After 4 years I feel like am understanding this market.

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