Scalper

The scalper has the goal of a quick trade for small but leveraged profits. The scalper prefers to trade frequently for small moves instead of working for larger moves. The scalper focuses on the goal of taking profits quickly from the market and trades in a very limited time frame. Scalpers focus on the most recent price action and on small time intervals, from 10-minute candles to 1-minute candles. The trader seeing a high probable trade can decide to put on multiple lots and then attempt to...

Conducting Your Own Fundamental Analysis

The forex trader today is very lucky. The Internet provides unprecedented access to information and data perhaps too much information. A good technique to use that provides an efficient way to pull information out of the World Wide Web is to use the search engines and input the right terms. For example, as the trader prepares to evaluate a currency to trade, he or she should also scan the latest news. Here is how to do it 1. Go to Google, click on the News link and then click on Sort by Date....

Test Your Forex IQ

The following questions test the knowledge you've acquired by reading this book. You are able to take this quiz, place your responses, and find the answers, as well as new questions, at www.learn4x.com forex IQ. E-mail Abe Cofnas at learn4x earthlink.net with any questions you may have. Good luck 1. What is the index that tracks U.S. dollar as an instrument for trading 2. Which currency pairs are closely related to movements in gold, and which commodities are closely related to movements in the...

Info

One of the fundamental variables that affect sentiment regarding the U.S. dollar is the fact that as a nation the United States has huge foreign debt. For example, economist David Levy said recently The current account deficit measures the difference between what U.S. residents spend abroad and what they earn abroad in a year. It now stands at almost six percent of GDP total net foreign liabilities are approaching a quarter of GDP. Sudden unwillingness by investors abroad to continue adding to...

Volatility in Forex and Its Dimensions

This chapter reviews how volatility should be used in helping the forex trader evaluate market conditions. Volatility conditions, when added to classical support and resistance, and trend analysis identify high-probability trading opportunities and patterns. By identifying currency pair volatility and associated exhaustion conditions, the trader gains knowledge of what the currency pair is doing. What the trader is most interested in is the behavior at prices at the extreme. A currency pair can...

Check the Weekly Crude Oil Copper and Gold Charts

Which commodities are probing support or resistance Are any of these commodities in a channel pattern How Business Confidence and Consumer Sentiment Affect the Market A powerful response force that moves forex prices, as well as other markets, is business and consumer confidence data. These reports are results of extensive professionally designed surveys that are conducted on a regular basis in many countries. When these survey results are released, they provide important information on...