The greatest thing since sliced bread! Japanese candlesticks are perhaps the best indicator of them all. Indeed, there are traders whom use nothing more than the candlesticks. No MACD, no moving averages, no RSI, or any other technical indicator. Part of the reason, is that the candlesticks themselves reflect much of the technical and fundamentals in the way they are formed. Traders whom can read and interpret them well, can see trend, momentum, volatility as well as support and resistance.
The Holy Grail for traders is market sentiment. What are the mass of traders thinking and how will they react? All traders desire to assess this correctly as it is the linchpin of successful trading. Indeed, whenever a trader enters or exits a trade, their decision is based upon a perception of market psychology at that moment. The question traders continually ask themselves before a trade, is whether they have recognized the correct trend, or have they made a faulty assessment and/or has the market shifted. A trader is much like the helmsman of a ship navigating treacherous waters. Either he rides the tide, or he can be submerged by it. Just as tides continuously shift, so does market psychology.
One of the significant fundamental indicators in forex trading is Nonfarm Payroll Data, in short NFP. The NFP indicates the number of jobs from the manufacturing, construction and goods-producing sectors of the U.S. economy that were added or lost over the previous month.
The numbers represent the total amount of paid employees in USA, excluding the following:
1. Private household workers
2. Nonprofit organizations
4. General government employees
The report also includes the estimates on the average work week and the average weekly salaries of all non-farm employees. During the NFP release the market can experience high volatility and therefore create potential profit opportunities to the traders. Not all traders, however, are brave enough to take advantage of NFP release due to increased risk such news portray.