Worksheets

It examines fundamental factors like economic data, central bank meetings, market sentiment, earning reports, and geopolitical risks to identify the mid-term and long-term price trends (Forex, stocks, gold, oil, etc).

Traders in the Forex market examine all factors affecting the global economy and currency prices.

In contrast, stock traders not only consider macroeconomic factors )such as production, GDP economic growth, and the labor market(, but also develop expertise in analyzing financial statements and assessing the intrinsic value of equities.

Gross Domestic Product (GDP) is the main measure of economic growth, showing whether the economy is in a boom or a recession. Central banks use this concept to set monetary policies.

Moreover, traders can use GDP and its calculation method to assess and identify whether the economy is experiencing a boom or recession.

This concept is also applied in economic inflation analysis, labor markets, monetary policies, and financial markets.

According to the expenditure approach in calculating GDP (Gross Domestic Product), demand is one of the factors influencing economic growth.

Economic reports (including CPI, NFP, and PMI) create volatility in the Forex market based on the difference between actual figures and forecasts.

Additionally, understanding how GDP impacts Forex and analyzing its key components [trade balance, demand, government spending, capital flow, and investment] are essential for identifying mid-term and long-term market trends.

Vacuum Blocks (Liquidity Gaps) in ICT trading refer to gaps formed during high market volatility, often caused by major economic news releases, geopolitical events, supply and demand imbalances, or the opening of new trading sessions.

With the growth of the cryptocurrency market, the UK, as one of the leaders in blockchain innovation, strives to create regulations supporting innovation and ensuring users’ economic security.

In recent years, institutions like the HM Treasury and the Financial Conduct Authority (FCA) have established clear standards for digital asset service providers.

Fundamental analysis is one of the methods used to forecast the trends of various financial markets, such as forex, commodities, stocks, and cryptocurrencies.

Recession is a phase in the economic cycle characterized by rising unemployment rates and weak consumer demand. During this period, the government and central bank adopt expansionary policies to restore economic growth, which has corrective effects on markets. Consequently, demand for safe-haven assets increases.

The New York Kill Zone is divided into two segments.

• New York Morning Kill Zone: This period overlaps the New York open and London close, bringing high liquidity and major price moves due to U.S. economic news.
• New York Afternoon Kill Zone: Occurs during the later hours of the New York session, from 1:00 PM to 4:00 PM (EST). Although it exhibits lower volatility compared to the morning session, it can still provide trading opportunities and help in planning trades for the next day.

Need indicators to identify Kill Zones? refer to the following links:

• Kill Zone Indicator for MetaTrader 4
• Kill Zone Indicator for MetaTrader 5

Dovish stance refers to expansionary monetary policy, aimed at stimulating economic growth, which often leads to the depreciation of the related currency.

A dovish stance is usually favorable for risky assets such as cryptocurrencies and stocks. In contrast, a hawkish stance describes a contractionary monetary policy, implemented to control economic inflation and generally results in currency appreciation.

Hawkish stances by the Federal Reserve often lead to corrections in risk markets.

Monetary policy, with its direct impact on liquidity, reduces or increases inflation. The way monetary policy affects economic inflation depends on the type (tools) and direction (contractionary or expansionary) of the policy.

Moreover, implementing monetary policy may lead to a boom or recession in various economic sectors by changing societal consumption patterns.

Stagflation is the worst phase of an economy; Despite rising unemployment rates, economic growth declines instead of reducing inflation. 

Central banks face significant challenges in monetary policy during this period due to sticky inflation, leaving little room for expansionary monetary or fiscal policies.

At the same time, stimulative and supportive policies must be implemented to revive the economy.

Inflation is an economic concept introduced in the early 20th century by the German economist “Heinrich Von”. It refers to the uncontrollable increase in the general price level of goods and services. This price increase is analyzed and defined through various Fundamental analysis indices such as CPI, PPI, and PCE.