US Data Reigns Supreme

The United States is still the largest national economy in the world despite recent economic troubles that continued into 2010. The U.S. gross domestic product dwarfs all others, and the United States remains the largest consumer of exports for most countries around the world. This position of economic power places the importance of U.S. economic data higher than that of any other country. Many believe the United States will be the first to recover from the recent economic troubles and pay...

Understanding Currency Quotes

In the forex market, all price quotes are represented by two prices, known as the bid price and the ask price. Both the bid price and ask price represent the exchange rate of the base currency pair against the quoted pair, except they serve two different functions. The bid price indicates the price at which your currency dealer is willing to buy the base currency from you in exchange for the quoted currency. The ask price indicates the price at which your currency dealer is willing to sell you...

Principles of a Bargain Hunter

Nothing makes you feel like a sucker more than discovering you could have paid less for something you just bought. From garage sales to global finance, bargain hunters seek out the absolute best price, whether they are buying velvet Elvis or 1 million euros. Under all the fancy software, chart patterns, indicators, and analyst opinions, trading currency has only one goal to buy currency when it is dirt cheap and to sell it to someone else for top dollar. Unfortunately, traders often get...

Measuring Institutional Interest

Institutional participants drive massive sums of money into and out of the spot forex market. Their bias toward a currency should be of interest to any retail trader because their influence on supply and demand can change a currency's value over time. Wouldn't it be nice to know whether the big dollars were generally bullish or bearish on a currency before you pulled the trigger on a trade Unfortunately, the forex market does not offer TABLE 3.1 CSOWRs Calculated for Australia,...

Using Key Zones

The challenge many traders face is determining which horizontal support and resistance levels have the highest probability of holding price versus which will fail. Although trend and price action have a lot of influence on selecting the right support or resistance level, there are some shortcuts you can use to quicken the process. Key support and resistance zones can be used to increase the probability price will respect the price level and offer you a good trade. Key zones are created by...