Things You Need to Know Before Trading Forex

In the game of baseball, there are players who win games for their team through sheer speed. Often referred to as speed demons, they intimidate opponents with their talent for stealing bases and scoring runs. Other players are known for their ability to knock the ball out of the park. Known as power hitters, these players have the ability to shift the momentum of a game with a single swing of the bat. Another group of players is known for their defensive prowess. Their talent for negating the...

The FXEd Trend Technique

Earlier, we compared a trend to a river, and we noted that it is easier to paddle in the direction of the current than it is to fight our way upstream. Each river has its own current, and the strength of that current can, and sometimes does, change. Sometimes a drought will dry the flow to a trickle, bringing the river to a near standstill. At other times, great storms will cause floods and turn the river into an unstoppable force. How should we approach a trending market situation when the...

The Squeeze Play

As we noted earlier, most good trading strategies begin with a market tendency traders notice that the market tends to behave in a certain way, and then they create a strategy that seeks to capitalize on this tendency. Let's look at a strategy that is designed to take advantage of volatility in the forex market. Volatility tends to run in cycles. In other words, periods of high volatility tend to be followed by periods of low volatility. There is a simple explanation for this when a market is...

The Worlds Most Dynamic Trading Market

Trading the forex market is one of the most exciting and potentially profitable endeavors that you can undertake. We trade the entire world, matching the world's economies against one another. This market is vast, much larger than any stock or futures market. There is nothing else like it on earth. The stakes are high fortunes can be won or lost quickly. In order to succeed in this realm, we must first learn to understand it. Copyright g 2006 Josep Gir . All rights reserved. Copyright g 2006...

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FIGURE 4.2 A massive head-and-shoulders formation in the USD JPY currency pair. Source FXtrek IntelliChart . Copyright 2001-2006 FXtrek.com, Inc. Experienced traders of stocks and commodities will see many familiar formations and patterns in the charts of currency pairs. For example, take a look at the massive head-and-shoulders pattern that formed over a three-year period in the USD JPY U.S. dollar Japanese yen currency pair Figure 4.2 . Forex traders use support and resistance levels to...