Whilst trading intraday forex appeals to many my style involves trend trading on hourlies in the direction of the dailies (which may or may not be trending). The direction of the dailies is usually the results of capital flows . carry trades etc, in other words i want a solid grasp of economics so that i can best understand the trends i am following on higher timeframes. Ive read currency trading and intermarket analysis which was great but a bit advanced for me. i have basic understanding but i want ot take it that next bit further, any good resources on the internet , books etc? i've read investopedia's university, it's good too. Any help would be appreciated
The best resource you will ever find is your own discoveries and conclusions derived from studying price movement without any 'cause' interference for the time frame and markets you wish to actively trade. To do this you need to have 'solid grounding' in technical analysis, not fundamentals. Good luck.
thanks but technical analysis, simply isn't enough (imo) to understand forex trends. i have a solid grasp of TA at a young age and mutiple timeframes is the pinnacle of TA (imo). technical analysis will make you money but it will only get you so far, even daytraders, most of them check the news and read it to get a feel for it , rather than just 'trade price'. hard to explain what i mean, someone once told me 'novice traders look for magical easy forumlae, experts try to understand'.
as you already seem to have a grasp of the carry trade, you may also want to look at the economics of the fixed income market. im sure you can understand why given the previous point. these economic sources could be a little easier to discover. you then have to see who is doing the wagging: the dog, or the tail.
Agree, because I think we are speaking about two different types of technical analysis. The one sold in books and the one created by yourself to fit your own specific mental environment. I am referring to the later one.
ok i get ye' . Carry trade wise, i think it's one of the best driver of big trends, particularly in yen etc. Then again i don't know how to interpret/analyse 'risk appetite' i.e., whether the conditons at a given moment in time in the markets reflect confidence as more risk taking-i.e. incentive to carry trade.