Leading or lagging economics news or economics indicators is very important to predict the way of market trend. And of course this method still has to be filtered with technically strategy to calculate entry point from key level of support resistance on four hour or daily timeframe. Most economists talk about where the economy is headed – it’s what they do. But in case you haven’t noticed, many of their predictions are wrong. For example, Ben Bernanke (head of the Federal Reserve) made a prediction in 2007 that the United States was not headed into a recession. He further claimed that the stock and housing markets would be as strong as ever. As we know now, he was wrong.
Because the pundits’ predictions are often unreliable – purposefully so or not – it is important to develop your own understanding of the economy and the factors shaping it. Paying attention to economic indicators can give you an idea of where the economy is headed so you can plan your finances and even your career accordingly.
There are two types of indicators you need to be aware of:
- Leading indicators often change prior to large economic adjustments and, as such, can be used to predict future trends.
- Lagging indicators,however, reflect the economy’s historical performance and changes to these are only identifiable after an economic trend or pattern has already been established.
So, here more explanation about leading and lagging economics news that we can use as indicators below :
|LEADING ECONOMIC NEWS :1. Manufactures
2. Retail Sales and WPI m/m (whosale price index)
3. Building Permits dan Housing Start
4. Home/Housing Sales
5. Business sentiment
|[adsenseyu6]||LAGGING ECONOMIC NEWS :
I’ve hope with this article, we can more wise about our analysis in forex market before we made some trading decision, and my suggestion we have to combined this economics indicators value with pinbar or doji on four hour and daily level as key level entry to minimize our risk and get big reward from forex market and remember using best honest broker too because this candlestick is very important too on reading confirmation signals.