What to Pay Attention to on November 24? Analysis of Fundamental Events for Beginners

[Ben Graham]

Review of Macroeconomic Reports:

There are very few macroeconomic reports scheduled for Monday. Essentially, the only noteworthy report is the business climate index in Germany, which is an absolutely secondary indicator. Thus, we can expect sluggish movements and a "boring Monday" with a high degree of probability. Technical analysis will take precedence in importance. Recall that the key point in the analysis right now is the flat trend of the euro on the daily timeframe.

Review of Fundamental Events:

There are also a few fundamental events scheduled for Monday. European Central Bank President Christine Lagarde and several of her colleagues will deliver speeches in the Eurozone. However, it should be noted that there are currently no questions regarding the European Central Bank's monetary policy. The central bank has managed to stabilize inflation around 2%, and the easing cycle has, with 99% probability, come to an end. Therefore, the speeches of the ECB president do not hold much significance at this time.

General Conclusions:

During the first trading day of the week, both currency pairs may exhibit any movements since the macroeconomic backdrop will be absent today. The euro has an excellent trading area at 1.1527-1.1531, while the British pound has an area at 1.3096-1.3107 along with its flat trend. Market volatility is currently low, regardless of the significance and volume of macroeconomic data, which is something to keep in mind.

Key Principles of My Trading System:

1. The strength of the signal is considered based on the time taken to form the signal (bounce or breach of a level). The less time taken, the stronger the signal.
2. If two or more trades have been opened around a certain level based on false signals, all subsequent signals from that level should be ignored.
3. In a flat market, any pair can create numerous false signals or may not form them at all. In any case, it's best to stop trading at the first signs of a flat.
4. Trading deals are opened during the period between the start of the European session and the middle of the American session, after which all deals should be closed manually.
5. On the hourly timeframe, it is preferable to trade based on signals from the MACD indicator only when there is good volatility and a trend that is confirmed by a trend line or trend channel.
6. If two levels are too close to each other (between 5 and 20 pips), they should be treated as an area of support or resistance.
7. After a 15-20-pip move in the right direction, a Stop Loss should be set to breakeven.

What the Charts Show:

• Support and resistance price levels are targets for opening buy or sell positions. Take Profit levels can be placed around them.
• Red lines indicate trend channels or trend lines, reflecting the current trend and indicating the preferred trading direction.
• The MACD indicator (14,22,3) — histogram and signal line — is a supplementary indicator that can also be used as a source of signals.

Important announcements and reports (always available in the news calendar) can significantly impact the movement of the currency pair. Therefore, during their release, it is recommended to trade with maximum caution or to exit the market to avoid sharp reversals against the preceding movement.

Beginners trading on the Forex market should remember that not every trade can be profitable. Developing a clear strategy and money management is key to long-term success in trading.

The material has been provided by InstaForex Company - www.instaforex.com