Market Drivers - newsqlguru/ict-index GitHub Wiki

Tools for Identifying Market Drivers and Higher Time Frame Market Conditions

  • There are external forces that drive market conditions and affect the delivery of price.
  • Economic News
  • Interest Rates
  • Indices and Commodities have Seasonal Drivers (Seasonality)
  • Intermarket Correlation

Economic Calendar

  • Drives volatility in the market on a short term basis
  • Check this calendar on a daily basis, look forward a week or more for possible news drivers.
  • https://www.forexfactory.com/calendar image

Interest Rates

  • Check this page on a daily basis before trading to understand market sentiment.
  • Rates are set by the Fed, rates control the movement of money in the economy.
  • Higher rates translate into reduced liquidity and a stronger USD.
  • Lower rates translate into more liquidity in the economy and a weaker USD.
  • https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html image

Intermarket Correlation

  • USD is inversely correlated with indices.
  • A stronger USD means weaker indices prices.
  • Weaker USD means stronger indices prices.