I read and interpret financial data religously not only for my daytrades but also for my swings. Yes, I do study this data.
For example, the dollar is still WAY overvalued on the index. That's why I say the time is coming soon to take another swing trade against the USD.
I religously follow the price of oil and gold, bonds, all the major fundamentals, Fed and ECB activities, all economic data from the government, etc...
I track everything, almost like a hunter, even to the point of being a stalker! I leave nothing to chance and let nothing slip through the cracks.
I do this because it's the only way to make winning, profitable trades. As I've said, technical indicators are absolutely no match for a fundamental economic report or a few sound bytes from a Fed or ECB official.
For example, on Sunday, I guess folks were saying the techs gave signals to go short. Well, I went long based on non-technical factors. Early this morning I closed my longs at 1.2955 that I took from the bottomside on Sunday and yesterday. I made a decent profit ($5,090) on those longs.
Had I followed the tech indicators I may have closed them for a loss and went short. So not only would I have lost the jump we made this morning, but I'd be in the negative again, losing money...
I ride the EUR/USD both directions. I'm about to take a short here if it keeps bouncing around 1.2950 for much longer. And I'm basing this decision soley on market patterns, price patterns, and price fluctuations -- what I call market pattern predictibility...
