A problem that a lot of traders have is that they do not look at the bigger picture of the foreign exchange London. The bigger picture of the foreign exchange London will include all the factors that affect the market. There are a lot of traders who assume that only fundamental traders need to consider the big picture. This is not true as technical traders should also know about the big picture and how this can affect you.
Why this is a Fundamental Problem
Many new traders wonder why the big picture is considered to be a fundamental trader’s problem. The reason for this is that fundamental traders are seen as being the ones most commonly blinded by the smaller picture. The small picture of the fundamental trader is the forex news event that they are looking at. This event is a single event in the broad picture of the forex market, but many fundamental traders look at it as an isolated event. This means that they are not looking at the big picture.
Technical traders feel that they are always looking at the big picture because of the all encompassing nature of forex charts. While this is true to a certain extent there are times when technical traders are also blind to the big picture. These times come when technical traders look at only one timeframe in the market. All technical traders focus on a single timeframe and look only at those charts. This limits what you are seeing and stops you from noticing the big picture.
The Effect of the Fundamental Foreign Exchange London Big Picture
To find the big picture when you are looking at fundamental analysis you have to look at more than the event you will be trading on. When you look at an event you have to consider what the market reaction will be. The only way that you can do this with any level of accuracy is to look at the big picture. The big picture includes the other news events that affect the one you are going to trade on.
The truth is that all fundamental data is linked in one way or another. The retail sales figure will impact the market reaction to the employment figures. The employment figures will also impact the reaction to the manufacturing data and the imports and exports. To avoid missing the big picture you have to consider what other news events will impact the reaction to the one you are looking at. This is the only way that you will be able to determine what could happen on the market.
The Effect of the Technical Analysis Big Picture
To find the big picture in technical analysis you have to consider more than one timeframe. Most traders will not do this because they feel it defeats the point of trading in a single timeframe. However, if you are trading in the short-term then you should still consider the long-term charts. When you look at the long-term charts you will see the overall movement of the market. Knowing what the overall movement is can help you determine what is going to happen in the short-term. The platform Plus500 is what I use and it has easy to read graphs with several timeframes. I recommend trying it out.