5.1Why Macro Matters
- ·The difference between describing and explaining market behaviour
- ·The macro variables that shape conditions
- ·How macro informs regime identification
Technical analysis describes market behaviour.
Macro analysis helps explain the forces influencing that behaviour.
Important macro variables include:
- ·inflation
- ·interest rates
- ·central banks
- ·employment
- ·economic growth
- ·bond yields
- ·currencies
- ·liquidity
- ·risk sentiment
Technicals describe. Macro explains.
Two identical breakouts can behave differently depending on whether the macro environment is supporting or opposing the direction of the move.
Examples use historical or illustrative data only. They are not live market signals.
List the three macro variables most relevant to your primary instrument and why.
Macro analysis primarily helps a trader:
Technical and macro analysis answer the same question.
- 01Technical analysis describes; macro explains.
- 02Macro variables shape the regime price moves within.
- 03Context changes the meaning of identical price patterns.
Educational content only. Nothing here is financial advice or a recommendation to trade. Trading involves risk of loss, results vary between individuals, and past performance does not indicate future results. Only capital you can afford to lose should be exposed to market risk.