I'm looking for a way to incorporate f/a in my methodology, but lacking experience (with f/a), I'm having a hard time deciding how exactly I should do this. Some of my questions: -Is it possible to use (in a profitable way) fundamental analysis when one is looking for trades/entries on a timeframe that yields 5-7 trades per week? Within the context of the first question: -Is the assumption that mid term (e.g. geopolitics?, oil prices?, interest rates?) drivers have a lesser influence in these daily price movements than certain short term drivers correct? Or do these elements still play a (significant?) role in the intraday-intraweek price movements? -What are these short term drivers? (news releases of the day? news releases of tomorrow? this week? something else?) Or, is fundamental analysis extraneous in those time frames (i.e. 60 minute bars, or smaller)? -If so, at what timeframe does fundamental analysis become a critical element? When is it redundant? Or perhaps the only price movement that happens in such timeframes that is related to f/a is after news releases (and the, in my opinion, unpredictable discrepancy between actual numbers and forecasted numbers)? What I'm looking for is some pointers to develop a practical way to approach fundamental analysis (what to keep an eye on and what not, ....) in these shorter timeframes (without referring to trading on news releases), if this is even possible? Appreciate any tips on this.
I suspect fundamental analysis is more useful for long term (more than 3 years trade duration) trading. I look for really big type events such as the Soviet Union dissolving about year 1988. Big irreversible events.
Even if you just consider yourself a tape reader, f/a will come into play almost every day. Just keep watching the market, watch how it reacts to news, keeping in mind that alot of "news" tends to already be priced in. Keep bonds, gold, oil, stock indices on the screen, as the same fundamentals will affect these markets as well, and will provide confirmation even if you do not trade them.