In the trading world, it’s often debated whether technical or fundamental analysis reigns supreme. But in many cases, both work in tandem, amplifying the market’s movement. 19.09.2024 provided a clear example when the Federal Reserve slashed interest rates by 50 basis points—double the expected reduction of 25 points. This unexpected move sent shockwaves through the markets. Fortunately, our proprietary technical analysis had already positioned us perfectly, with seven trades running prior to the announcement.
How Fundamentals Boost Technical Positions
When news of the larger-than-expected rate cut broke, it caused a surge in momentum that aligned with our technical setups. This is one of the moments when both fundamental and technical factors pushed the price in the same direction. It wasn’t just luck—our analysis had already identified these profitable opportunities. The news only magnified the gains.
Let’s break down what happened:
Active Trades Prior to the Fed News:
Here’s a snapshot of the trades we had running before the news hit: Why Timing Matters
These trades were entered based on precise technical analysis well ahead of the Fed’s announcement. The market’s technical indicators signalled strong potential moves, and our strategy capitalized on that. When the Fed’s decision exceeded expectations, the market reaction pushed prices even further in our favour.
For example, our trade on HK50 (Order 6545) saw a massive profit of 21,677 points, thanks to this alignment of technical and fundamental forces. Similarly, our position in ETHUSD yielded 9,874 points in profit as the news added fuel to an already solid technical setup.
The Power of Combining Technical and Fundamental Analysis
This event reinforces an important lesson for all traders: The most successful trades often come when both technical and fundamental factors point in the same direction. Technical analysis can identify potential opportunities, but news events like the Fed’s rate decision can turn those opportunities into significant gains.
This is why at N P Financials, we use a blend of both approaches. Our proprietary technical analysis gave us the insight to enter these trades early, and the fundamental news provided the catalyst for maximum profit.
Don’t Miss Out on the Next Big Move
Trading is all about timing and preparation. The news will always create volatility, but those who are positioned well beforehand are the ones who profit the most. If you want to learn how to capitalize on these types of moves, explore our Trader Training Programs. You’ll learn to read the markets like a pro, combining technical expertise with a keen awareness of fundamentals.
Are you ready to maximize your profits on the next big news event?
This case shows the massive benefits of mastering both technical and fundamental analysis, and how you too can be in the right place at the right time. Join us and take your trading to the next level!
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- Contact Us: Visit our website or drop by our office.
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