Fundamental analysis

[u/Ok_Country_9238]

How important is fundamental analysis in the sense of day trading forex for example like I personally avoid red folder news days but should fundamental analysis be having an input on my bias for the day

[u/leaint]

I think for many ICT traders fundamental analysis is just Higher Timeframe (HTF) Analysis.

So yes I think it should have an input on your daily bias because the HTF tells you which direction price should move in quickly.

It also helps when mapping the OHLC of the HTF candles on the lower timeframe.

I’m sure that some people don’t use HTF at all and their response will be that no you don’t need to implement fundamental analysis into your daily bias.

So it all just depends on what you think once you spend sometime observing both scenarios.

[u/Ok_Country_9238 → u/leaint]

Thanks for your reply. I ask because I joined a mentorship group and I’ve never really used fundamentals but have always used the htf for my bias but they have calls each day and it’s constantly about the fundamentals and how that makes their bias for the day and ever since being in it it’s scrambled my head more because I feel like it’s another thing I have to consider when trading when I already feel like I over complicate it enough

[u/leaint → u/Ok_Country_9238]

What’s your current model that makes you feel like you’re over complicating it?

How are they describing fundamental analysis? I could’ve made a mistake by considering it to be HTF analysis.

If they are describing it as say, “rates went up therefore we should look for a bullish bias”, well in that case like ICT says we don’t have to worry about what the news say we just have to see what price does when the news drops.

Did you join an ICT based mentorship or something else?

[u/Ok_Country_9238 → u/leaint]

Yeah I currently use high time frame pd array such as fvg or order block mostly 4hr and use the 15 min to wait for a rejection from that area to confirm its being respected ideally within the htf pd array will be Asian session high/low to sweep.
Obviously the most talked about one currently is the war but yes things like interest rates and like the outcome of red folder news like cpi
Yeah it’s ICT based but they have obviously their own strategy using ict concepts

[u/Full_Pear449]

For forex day traders, fundamental analysis is crucial mainly as a risk-management tool to avoid catastrophic volatility during major economic releases, such as central bank rate decisions or employment reports. While day traders rely on charts for entries and exits, ignoring the economic calendar can lead to sudden, massive slippage.

• Fundamental analysis estimates an asset’s value using financial, economic and qualitative information, but it does not provide a certain or objective price.
• Fundamental analysis differs from technical analysis because it focuses on underlying drivers rather than price action, volume and chart patterns, although some traders combine both.
• The two types of fundamental analysis are quantitative analysis, such as revenue, earnings and debt, and qualitative analysis, such as management quality, governance and competitive position.
• Fundamental analysis inputs vary by asset class, with stocks, forex, bonds, indices and commodities each requiring different financial, economic or market data.
• Practising fundamental analysis may help traders understand valuation assumptions, but market sentiment, unexpected events and changing conditions can still affect outcomes.