Basics of FOREX

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Contents
Contents................................................................................................................................. 2
What Is FOREX or FOREX MR!E"# $R" I...................................................................%
Why is FOREX tra&in' so popu(ar#.................................................................................... )
*+ RE,O-, "O ,"R" "R.I-/ FOREX0....................................................................1
2ow Currencies are 3uote& an& what 4o5es in&i5i&ua( currencies#................................*+
What are 6$I$,6 #............................................................................................................ *%
2OW "O B78 9 'oin' : ;O-/ <=an& ,E;; 9 'oin' : ,2OR" <= in the FOREX Mar>et#. . .*?
2OW "O C;C7;"E $ROFI" OR ;O,,# ...................................................................*)
2OW "O RE. FOREX $RICE C2R",# .....................................................................*@
2OW .O Econo4ic E5ents i4pact /(oAa( Currencies:....................................................*B
2OW "O pre&ict the Future # .......................................................................................... 2+
Which technica( in&icators are the BE,"#........................................................................2*
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What Is FOREX or FOREX MARKET? PART I
"he Forei'n Exchan'e 4ar>et 9a(so referre& to as the Forex or FX 4ar>et= is the (ar'est
financia( 4ar>et in the wor(&C with o5er D*.) tri((ion chan'in' han&s e5ery &ay.
"hat is (ar'er than a(( 7, e3uity an& "reasury 4ar>ets co4Aine&0
7n(i>e other financia( 4ar>ets that operate at a centra(iEe& (ocation 9i.e. stoc> exchan'e=C the
wor(&wi&e Forex 4ar>et has no centra( (ocation. It is a '(oAa( e(ectronic networ> of Aan>sC
financia( institutions an& in&i5i&ua( tra&ersC a(( in5o(5e& in the Auyin' an& se((in' of nationa(
currencies. nother 4aFor feature of the Forex 4ar>et is that it operates 2? hours a &ayC
correspon&in' to the openin' an& c(osin' of financia( centers in countries a(( across the
wor(&C startin' each &ay in ,y&neyC then "o>yoC ;on&on an& -ew 8or>. t any ti4eC in any
(ocationC there are Auyers an& se((ersC 4a>in' the Forex 4ar>et the 4ost (i3ui& 4ar>et in the
wor(&.
"ra&itiona((yC access to the Forex 4ar>et has Aeen 4a&e a5ai(aA(e on(y to Aan>s an& other
(ar'e financia( institutions. With a&5ances in techno(o'y o5er the yearsC howe5erC the Forex
4ar>et is now a5ai(aA(e to e5eryAo&yC fro4 Aan>s to 4oney 4ana'ers to in&i5i&ua( tra&ers
tra&in' retai( accounts. "he ti4e to 'et in5o(5e& in this excitin'C '(oAa( 4ar>et has ne5er
Aeen Aetter than now. Open an account an& Aeco4e an acti5e p(ayer in the (ar'est 4ar>et
on the p(anet.
"he Forex Mar>et is 5ery &ifferent than tra&in' currencies on the futures 4ar>etC an& a (ot
easierC than tra&in' stoc>s or co44o&ities.
Whether you are aware of it or notC you a(rea&y p(ay a ro(e in the Forex 4ar>et. "he si4p(e
fact that you ha5e 4oney in your poc>et 4a>es you an in5estor in currencyC particu(ar(y in
the 7, .o((ar. By ho(&in' 7, .o((arsC you ha5e e(ecte& not to ho(& the currencies of other
nations. 8our purchases of stoc>sC Aon&s or other in5est4entsC a(on' with 4oney &eposite&
in your Aan> accountC represent in5est4ents that re(y hea5i(y on the inte'rity of the 5a(ue of
their &eno4inate& currency Gthe 7, .o((ar. .ue to the chan'in' 5a(ue of the 7, .o((ar an&
the resu(tin' f(uctuations in exchan'e ratesC your in5est4ents 4ay chan'e in 5a(ueC affectin'
your o5era(( financia( status. With this in 4in&C it shou(& Ae no surprise that 4any in5estors
ha5e ta>en a&5anta'e of the f(uctuation in Exchan'e RatesC usin' the 5o(ati(ity of the Forei'n
Exchan'e 4ar>et as a way to increase their capita(.
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Exa4p(e: suppose you ha& D*+++ an& Aou'ht Euros when the exchan'e rate was *.)+
Euros to the &o((ar. 8ou wou(& then ha5e *)++ Euros. If the 5a(ue of Euros a'ainst the 7,
&o((ar increase& then you wou(& se(( 9exchan'e= your Euros for &o((ars an& ha5e 4ore
&o((ars than you starte& with.
Exa4p(e:
8ou 4i'ht see the fo((owin':
E7R/7,. (ast tra&e *.)+++ 4eans
One Euro is worth D*.)+ 7, &o((ars.
"he first currency 9in this exa4p(eC the E7RO= is referre& to as the Aase currency an& the
secon& 9/7,.= as the counter or 3uote currency.
"he FOREX p(ays a 5ita( ro(e in the wor(& econo4y an& there wi(( a(ways Ae a tre4en&ous
nee& for the exchan'e of currencies. Internationa( tra&e increases as techno(o'y an&
co44unication increases. s (on' as there is internationa( tra&eC there wi(( Ae a FOREX
4ar>et. "he FX 4ar>et has to exist so a country (i>e /er4any can se(( pro&ucts in the
7nite& ,tates an& Ae aA(e to recei5e Euros in exchan'e for 7, .o((ar.
RI,! WR-I-/:
Ris>s of currency tra&in'
Mar'ine& currency tra&in' is an extre4e(y ris>y for4 of in5est4ent an& is on(y suitaA(e for
in&i5i&ua(s an& institutions capaA(e of han&(in' the potentia( (osses it entai(s. n account with
an Aro>er a((ows you to tra&e forei'n currencies on a hi'h(y (e5era'e& Aasis 9up to aAout ?++
ti4es your account e3uity=."he fun&s in an account that is tra&in' at 4axi4u4 (e5era'e 4ay
Ae co4p(ete(y (ost if the position9s= he(& in the account experiences e5en a one percent
swin' in 5a(ue. /i5en the possiAi(ity of (osin' oneHs entire in5est4entC specu(ation in the
forei'n exchan'e 4ar>et shou(& on(y Ae con&ucte& with ris> capita( fun&s thatC if (ostC wi(( not
si'nificant(y affect the in5estors financia( we((IAein'.
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Why is FOREX trading so popular?
Because you can tra&e fro4 anywhere. Fro4 your >itchen taA(eC Ae&roo4C 'ara'e or fro4
the nearest ,tarAuc>s coffeehouse 9 4ost of the4 ha5e wire(ess Internet connection=.
If you ha5e or (i>e to tra5e(C ta>e your (aptop with you an& you can tra&e the FOREX
anywhere in the wor(& where you ha5e an Internet connection.
When you want to start tra&in' the Forex Mar>et noAo&y is as>in' you for a &ip(o4aC a
for4a( (icense or a proof of how 4any hours you ha5e spent stu&yin' the Forei'n Exchan'e
Mar>et an&/or Ban>in' In&ustry.
FOREX "ra&in' is Econo4ica( an& ,tartIup Costs are ;ow0
8ou can open an account to tra&e Forex with as (itt(e as 7,D 2++ at he 4ost Aro>era'e
fir4s.
I persona((y &o reco44en& Fenix Capita( Mana'e4entC ;;CC which offers a state of art
"ra&in' p(atfor4C that a((ows you to p(ace or&ers &irect(y Ay c(ic>in' on the chart.
"he Main Benefits of "ra&in' the FX ,pot Mar>et are:
8O7 &onHt pay co44issions or fees0
8O7 can tra&e 2?Ihours a &ay 0
8O7 can tra&e up to ?++:* ;e5era'e 0
8O7 can ha5e FREE ,trea4in' executaA(e $rice 3uotes an& (i5e charts0
It is i4portant to >now the &ifferences Aetween cash FOREX 9,$O" FX= an& currency
futures.
In currency futuresC the contract siEe is pre&eter4ine&.
With FOREX 9,$O" FX=C you 4ay tra&e e(ectronica((y any &esire& a4ountC up to D*+ Mi((ion
7,..
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"he futures 4ar>et c(oses at the en& of the Ausiness &ay 9si4i(ar to the stoc> 4ar>et=.If
i4portant &ata is re(ease& o5erseas whi(e the 7.,. futures 4ar>ets is c(ose&C the next &ayHs
openin' 4i'ht sustain (ar'e 'aps with potentia( for (ar'e (osses if the&irection of the 4o5e is
a'ainst your position.
"he ,pot FOREX 4ar>et runs continuous(y on a 2?Ihour Aasis fro4 1:++ a4 -ew Jea(an&
ti4e Mon&ay 4ornin' to ):++ p4 -ew 8or> "i4e Fri&ay e5enin'.
.ea(ers in e5ery 4aFor FX tra&in' center 9,y&neyC "o>yoC 2on' !on'/,in'aporeC ;on&onC
/ene5a an& -ew 8or>/"oronto= ensure a s4ooth transaction as (i3ui&ity 4i'rates fro4 one
ti4e Eone to the next.
Further4oreC currency futures tra&e in nonI7,. &eno4inate& currency a4ounts on(yC
whereas in spot FOREXC an in5estor can tra&e in a(4ost any currency &eno4inationC or in
the 4ore con5entiona((y 3uote& 7,. a4ounts.
"he currency futures pitC e5en &urin' Re'u(ar IMM 9Internationa( Money Mar>et= hours
suffers fro4 spora&ic (u((s in (i3ui&ity an& constant price 'aps.
"he spot FOREX 4ar>et offers constant (i3ui&ity an& 4ar>et &epth 4uch 4ore consistent(y
than Futures.
With IMM futures one is (i4ite& in the currency pairs he can tra&e. Most currency futures are
tra&e& on(y 5ersus the 7,..
With spot FOREXC you 4ay tra&e forei'n currencies 5s. 7,. or 5s. each other on a HcrossH
AasisC for exa4p(e: E7R/K$8C /B$/K$8C C2F/K$8C E7R//B$ an& 7./-J.
More an& 4ore we(( infor4e& in5estor an& entrepreneurs are &i5ersifyin' their tra&itiona(
in5est4ents (i>e stoc>sC Aon&s L co44o&ities with forei'n currency Aecause of the fo((owin'
reasons: 9wi(( Ae continue&=
RI,! WR-I-/:
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Ris>s of currency tra&in': Mar'ine& currency tra&in' is an extre4e(y ris>y for4 of in5est4ent
an& is on(y suitaA(e for in&i5i&ua(s an& institutions capaA(e of han&(in' the potentia( (osses it
entai(s. n account with an Aro>er a((ows you to tra&e forei'n currencies on a hi'h(y
(e5era'e& Aasis 9up to aAout ?++ ti4es your account e3uity=. "he fun&s in an account that is
tra&in' at 4axi4u4 (e5era'e 4ay Ae co4p(ete(y (ost if the position9s= he(& in the account
experiences e5en a one percent swin' in 5a(ueC 'i5en the possiAi(ity of (osin' oneHs entire
in5est4ent. ,pecu(ation in the forei'n exchan'e 4ar>et shou(& on(y Ae con&ucte& with ris>
capita( fun&s thatC if (ostC wi(( not si'nificant(y affect the in5estors financia( we((IAein'.
1 REA!O"! TO !TART TRA#I"$ FOREX%
More an& 4ore we(( infor4e& in5estor an& entrepreneurs are &i5ersifyin' their tra&itiona(
in5est4ents (i>e stoc>sC Aon&s L co44o&ities with forei'n currency Aecause of the fo((owin'
reasons:
*= FOREX is the (ar'est financia( 4ar>et in the wor(&.
With a &ai(y tra&in' 5o(u4e of o5er D*.) tri((ionC the spot FOREX 4ar>et can aAsorA tra&in'
siEes that &warf the capacity of any other 4ar>et. In factC when co4pare& with the D)+ Ai((ion
&ai(y 4ar>et for e3uities or the D%+ Ai((ion futures 4ar>etC it Aeco4es 3uic>(y apparent this
'i5es youC an& 4i((ions of other FOREX tra&ersC a(4ost infinite tra&in' (i3ui&ity an& f(exiAi(ity.
2= FOREX is a "rue 2?Ihour 4ar>et.
"he FOREX Mar>et ne5er s(eeps. "ra&in' positions can Ae entere& an& exite& at any
4o4ent aroun& the '(oAeC aroun& the c(oc>C ).) &ays a wee>. "here is no waitin' for an
openin' Ae(( as in the case of tra&in' stoc>s. It is a 2?I hourC continuous e(ectronic 9O-;I-E=
currency exchan'e that ne5er c(oses. "his is 5ery &esiraA(e for you if you want to tra&e on a
partIti4e AasisC Aecause you can choose when you want to tra&e: 4ornin'C noon or ni'ht.
%= "here is ne5er a Bear Mar>et in FOREX.
8ou can ha5e access to a sea4(ess exchan'e of currencies. Currencies tra&e in MpairsM 9for
exa4p(eC 7, &o((ar 5s. K$8 98E-= or 7, &o((ar 5s. C2F 9,wiss franc=C one si&e of e5ery
currency pair 9for exa4p(eC 7,./C2F= is constant(y 4o5in' in re(ation to the other. "husC
when you Auy a particu(ar currencyC you are actua((y si4u(taneous(y se((in' the other
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currency in that particu(ar pair. s the 4ar>et 4o5esC one of the currencies wi(( increase in
5a(ue 5ersus the other. Of courseC it is up to you to choose the correct currency to Ae (on'
9 you Aou'ht= or short9 you so(&=.
?= 2i'h ;e5era'e I up to ?++:* ;e5era'e.
8ou are per4itte& to tra&e forei'n currencies on a hi'h(y (e5era'e& Aasis I up to ?++ ti4es
your in5est4ent with Fenix Capita( Mana'e4entC ;;C an& with so4e other Aro>ers.
,tan&ar& *++C+++I 7,D currency (ots can Ae tra&e& with as (itt(e as +.2)N 4ar'inC or D2)+.
Mini FX accounts are per4itte& to tra&e with Fust +.2)N 4ar'inC 4eanin'C Fust D2) a((ows
you to contro( a *+C+++Iunit currency position.
Futures tra&ersC who are accusto4e& to 4ar'in re3uire4ents 'enera((y e3ua( to )I1NIBN of
the contract 5a(ueC wi(( i44e&iate(y reco'niEe that the FOREX 4ar>et pro5i&es 4uch 'reater
(e5era'eC an& for stoc> tra&ersC who 4ust post at (east )+N 4ar'inC thereOs no co4parison.
If youOre (oo>in' for an efficient use of tra&in' C tra&e the Forex Mar>et.
)= $rice Mo5e4ents 4i'ht Ae 2i'h(y $re&ictaA(e.
Currency prices in the FX 4ar>et 'enera((y repeat the4se(5es in re(ati5e(y pre&ictaA(e
cyc(esC creatin' tren&s. "he stron' tren&s that forei'n currencies &e5e(op are a si'nificant
a&5anta'e for tra&ers who use the Mtechnica(M 4etho&s an& strate'ies.
7n(i>e stoc>sC currencies ha5e the ten&ency to &e5e(op stron' tren&s. O5er B+N of 5o(u4e
is specu(ati5e in nature an&C as a resu(tC the 4ar>et fre3uent(y o5ershoots an& then corrects
itse(f. s a technica((yItraine& tra&erC you can easi(y i&entify new tren&s an& Area>outsC to
enter an& exit positions.
@= 8O7 &onHt pay co44issions or fees to tra&e FOREX
When you tra&e FOREXC throu'h Fenix Capita( Mana'e4ent ;;C 9FCM= you can &o it tota((y
FREE of co44issions an& fees C re'ar&(ess of your account siEe.
Fenix Capita( Mana'e4ent ;;CC re3uires a 5ery (ow 4ini4u4 a4ount to open a Aro>era'e
accountC on(y 7,D 2++ an& they &o not char'e co44issions or fees to tra&e or to 4aintain
an accountC re'ar&(ess of your account Aa(ance or tra&in' 5o(u4e.
1= 8O7 &onHt ha5e to pay tra&in' fees or exchan'e fees.
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"here are none of the usua( feesC which futures an& e3uity tra&ers are accusto4e& to pay:
-O exchan'e or c(earin' feesC
-O -F or ,EC fees.
Because currencies tra&e o5erItheIcounter 9O"C=C 5ia a '(oAa( e(ectronic networ>C in
FOREXC what you see on your tra&in' screenC is what you 'etC a((owin' you to 4a>e 3uic>
&ecisions on your tra&es without ha5in' to worry or account for fees that 4ay affect your
profit/(oss or s(ippa'e.
In the e3uity an& co44o&ity 4ar>etsC you 4ust pay Aoth a co44ission an& exchan'e fees.
"he o5erItheIcounter structure of the FX 4ar>et e(i4inates exchan'e an& c(earin' feesC
which in turn (owers transaction costs.
B= 2OW to Forex Aro>ers 4a>e 4oney if they &onHt char'e co44issions#
;i>e a(( tra&e& financia( pro&uctsC o5erItheIcounter currency tra&in' in5o(5es a Ai&/as>
sprea&C which represents the prices at which your counterpart is wi((in' to tra&e. 8our Aro>er
wi(( recei5e a part of this Ai&/as> sprea&.
Because the currency 4ar>et offers roun&ItheIc(oc> (i3ui&ityC you recei5e ti'htC co4petiti5e
sprea&s Aoth intraI&ay an& ni'ht. ,toc> tra&ers can Ae 4ore 5u(neraA(e to (i3ui&ity ris> an&
typica((y recei5e wi&er tra&in' sprea&sC especia((y &urin' afterIhours tra&in'.
P= Mar>et "ransparency.
Mar>et transparency is hi'h(y &esire& in any tra&in' en5iron4ent. "he 'reater the 4ar>et
transparencyC the 4ore efficient the 4ar>et Aeco4es. 7n(i>e other 4ar>ets where
transparency is co4pro4ise& 9(i>e in the 4any recent scan&a(s=C FOREX 4ar>ets are hi'h(y
transparent 9i.e.C ana(yEin' countriesC an& ha5in' access to rea(Iti4e research / newsC is
easier than ana(yEin' co4panies=.
Because of this transparencyC as an FX tra&erC you wi(( Ae aA(e to app(y ris> 4ana'e4ent
strate'ies in accor&ance to your fun&a4enta( an& technica( in&icators.
*+= Instantaneous Or&er Execution
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"he FX 4ar>et offers the hi'hest (e5e( of 4ar>et transparency out of a(( the financia(
4ar>ets. Because of thisC or&er execution an& fi(( confir4ation usua((y occur in Fust *I2
secon&s.
In ForexC or&er execution is a((Ie(ectronic an& Aecause youH(( Ae tra&in' 5ia an InternetIAase&
p(atfor4C instantaneous execution is routine.
"here are no exchan'esC no tra&itiona( openIoutcry pitsC no f(oor Aro>ersC an& conse3uent(yC
no &e(ays.9 wi(( Ae continue& =
&o' Curren(ies are )uoted and 'hat *o+es indi+idual (urren(ies?
O-E of the Aest a&5anta'es in FOREX "ra&in' is
"he a4ount of 4oney you nee& to p(ace a tra&e 9>nown as M4ar'inM= is a(( that can Ae (ost 0
8ou ha5e to >nowC that &espite the superIhi'h (e5era'e offere& Ay so4e Forex Aro>ers up to
9?++:*=Q 4eanin' if you put up D *+++ the Aro>er wi(( a((ow you to tra&e (i>e you rea((y ha5e
D?++.+++=.
Forex tra&in' is sti(( (ess ris>ier than ,toc> or Futures "ra&in'C where you can (oose 4ore
than you ha5e &eposite& in your account.
"his type of ;ERER/E &oes -O" EXI," in the e3uities or futures 4ar>et
In the E3uities or Futures 4ar>etsC 5ery oftenC su&&en an& &ra4atic 4o5es occurC a'ainst
which you canOt protect yourse(fC e5en Ay ha5in' p(ace& your protecti5e stops.
8our position 4ay Ae (i3ui&ate& at a (ossC an& youO(( Ae (iaA(e for any resu(tin' &eficit in the
account.
But Aecause of the FX 4ar>etOs &eep (i3ui&ity an& 2?IhourC continuous tra&in'C &an'erous
tra&in' 'aps an& (i4it 4o5es are a(4ost e(i4inate&.
Or&ers are execute& 3uic>(yC without s(ippa'e or partia( fi((s. n& fina((yC there are no 4ar'in
ca((s. For your protectionC the Aro>er wi(( auto4atica((y c(ose out so4e or a(( of your open
positions if your account e3uity fa((s Ae(ow the (e5e( re3uire& to ho(& the positions.
"hin> of this as a fina(C auto4atic stopC a(ways wor>in' on your Aeha(f to pre5ent a &eAit
Aa(ance.
Currencies are tra&e& in &o((ar a4ounts ca((e& : ;O",<
In Forex tra&in'C with 4ost Bro>ersC you ha5e the choice Aetween 2 &ifferent (ot siEes.
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,tan&ar& ;ots or Mini ;ots.
One ,tan&ar& (ot is e3ua( to D*++C+++ in currency. "he 4ar'in re3uire4entsC usin' a ?++:*
;e5era'eC wou(& Ae 7,D 2)+C in other wor& you contro( D*++C+++ worth of currency for on(y
2)+ 7, &o((ars.
8ou 4eanC &epositin' D2)+ with a Aro>erC I cou(& tra&e *++C+++D worth of currency ###
-OC Ae awareC that your account siEe has to Ae 4ore than the re3uire& 4ar'in of 7, 2)+.
For exa4p(eC if you p(ace an or&er to Auy * ,tan&ar& (ot 9 S*++C+++= of 7,./K$8 an&
7,./K$8 is 3uote& as **2.*+/**2.*%C you Auy 7,./K$8 at **2.*%.
8our account Aa(ance wou(& Ae D22+C Aecause you pai& % pips or D %+ for this tra&e.
If you wou(& c(ose this tra&e i44e&iate(yC you ha5e to se(( it at **2.*+ 9the Ai& price= C for a
(oss of D %+.
In fact you cou(& not 'et execute& on this tra&eC as the Aro>ers tra&in' p(atfor4 wou(& reFect
your or&erC for the reason of ha5in' insufficient fun&s in your account=.
,oC your account Aa(ance has to Ae 4ini4u4 D2B+. D2)+ for 4ar'in an& D%+ for the tra&e.
B7"....IFC after you ha5e initiate& the tra&e to Auy 7,./K$8 at **2.*%C an& the 7,./K$8
fa((s the next secon& * pip 9 approx. DB=C your position wou(& Ae c(ose& auto4atica((yC
Aecause of 4ar'in &eficit.
I wi(( exp(ain (ater aAout ha5in' an a&e3uate account siEe to tra&e the Forex Mar>et.
Currencies are a(ways tra&e& in pairs in the FOREX. "he pairs ha5e a uni3ue notation that
expresses what currencies are Aein' tra&e&.
"he sy4Ao( for a currency pair wi(( a(ways Ae in the for4 BC/.EF. BC/.EF is not a rea(
currency pairC it is an exa4p(e of a sy4Ao( for a currency pair. In this exa4p(e BC is the
sy4Ao( for one countries currency an& .EF is the sy4Ao( for another countries currency.
,o4e of the 4ost co44on sy4Ao(s use& in Forex are:
7,. I "he 7, .o((ar
E7R I "he currency of the European 7nion ME7ROM
/B$ I "he British $oun& or caA(e
K$8 I "he Kapanese 8en
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C2F I "he ,wiss Franc
7. I "he ustra(ian .o((ar
C. I "he Cana&ian .o((ar
"here are sy4Ao(s for other currencies as we((C Aut these are the 4ost co44on(y tra&e&
ones.
currency can ne5er Ae tra&e& Ay itse(f. ,o you can not e5er tra&e the 7,. Ay itse(f. 8ou
a(ways nee& to B78 one currency an& ,E;; another currency to 4a>e a tra&e possiA(e.
,o4e of the 4ost tra&e& currency pairs are:
E7R/7,. Euro a'ainst 7, .o((ar
7,./K$8 7, .o((ar a'ainst Kapanese 8en
/B$/7,. British $oun& a'ainst 7, .o((ar
7,./C. 7, .o((ar a'ainst Cana&ian .o((ar
7./7,. ustra(ian .o((ar a'ainst 7, .o((ar
7,./C2F 7, .o((ar a'ainst ,wiss Franc
E7R/K$8 Euro a'ainst Kapanese 8en
"he currency (eft of the / is ca((e& the Aase currency.
"he currency ri'ht of the / is ca((e& the counter currency.
When you p(ace an or&er to Auy the E7R/7,.C for instanceC you are actua((y Auyin' the
E7R an& se((in' the 7,..
If you were to se(( the pairC you wou(& Ae se((in' the E7R an& Auyin' the 7,.. ,o if you Auy
or se(( a currency $IRC you are Auyin'/se((in' the Aase currency.
"he Aest way to re4e4Aer isC Ay Fust thin>in' of the entire currency pair as one ite4.
If you Auy it...you Auy the first currency an& se(( the secon& currency. If you se(( it...you se((
the first currency an& Auy the secon& currency.
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"hat 4eans you wou(& to Ae aA(e to shortIse(( with no restrictions so you cou(& 4a>e 4oney
when the 4ar>et &rops as we(( as when it rises.
"he proA(e4 with tra&itiona( stoc> 4ar>et or co44o&ity tra&in' is that the 4ar>et has to 'o
up for you to 4a>e 4oney. With FOREX tra&in' you can 4a>e 4oney in a(( &irections.
What are ,PIP!, ?
Currencies are tra&e& on a price/ point 9pip= syste4. Each currency pair has its own pip
5a(ue.
When you see a FOREX price 3uoteC youH(( see so4ethin' (iste& (i>e this:
E7R/7,. *.22*+/*%
Exp(anation:
a= If you want to B78 the E7R/7,. 9 4eanin' you B78 E7RO, an& ,E;; 7,D = you Auy
*++C+++ E7RO, an& you ,E;; *22C*%+ 7,DC or in other wor&s you recei5e
*22C*%+ 7,D for *++C+++ E7RO,.
B= If you want to ,E;; the E7R/7,. 9 4eanin' you ,E;; E7RO, an& B78 7,D = you Auy
*22C*++ 7,D an& se(( *++C+++ E7RO,C or in other wor&s you recei5e *++C+++ E7RO, for
*22C*++ 7,D.
"he &ifference Aetween the Ai& an& the as> price is referre& to as the sprea&. In the exa4p(e
aAo5eC the sprea& is % or % pips.
,ince the 7, &o((ar is the centerpiece of the FOREX 4ar>etC it is nor4a((y consi&ere& the
HAaseH currency for 3uotes. In the MMaForsMC this inc(u&es 7,./K$8C 7,./C2F an& 7,./C..
For these currencies an& 4any othersC 3uotes are expresse& as a unit of D* 7,. per the
secon& currency 3uote& in the pair.
For exa4p(e a 3uote of 7,./C2F *.%+++ 4eans that fore one 7.,. &o((ar you recei5e *.%+
,wiss Francs. or in other wor&sC you recei5e *.%+ ,wiss Franc for each * 7,D.
When the 7.,. &o((ar is the Aase unit an& a currency 3uote 'oes upC it 4eans the &o((ar has
appreciate& in 5a(ue an& the other currency has wea>ene&. If the 7,./C2F 3uote aAo5e
increases to *.%+)+ the &o((ar is stron'er Aecause it wi(( now Auy 4ore ,wiss Franc than
Aefore.
"he three exceptions to this ru(e are the British poun& 9/B$=C the ustra(ian &o((ar 97.=
an& the Euro 9E7R=. In these casesC you 4i'ht see a 3uote such as E7R/7,. *.2+B+C
4eanin' that for E7RO you recei5e *.2+B+ 7.,. .o((ars.
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In these three currency pairsC where the 7.,. &o((ar is not the Aase rateC a risin' 3uote
4eans a wea>enin' &o((arC as it now ta>es 4ore 7.,. &o((ars to e3ua( one EuroC British
poun& or an ustra(ian &o((ar.
In other wor&sC if a currency 3uote 'oes hi'herC that increases the 5a(ue of the Aase
currency. (ower 3uote 4eans the Aase currency is wea>enin'.
Currency pairs that &o not in5o(5e the 7.,. &o((ar are ca((e& cross currenciesC Aut the
ca(cu(ation is the sa4e. For exa4p(eC a 3uote of E7R/K$8 *%?.)+ si'nifies that one Euro is
e3ua( to *%?.)+ Kapanese yen.
&OW TO -./ 0 going 1 2O"$ 34and !E22 0 going 1 !&ORT 34 in the FOREX
Mar5et?
!eep in 4in& 2 5ery i4portant ru(es:
R7;E T *= Cut your ;OO,I-/ tra&es an& (et your WI--I-/ tra&es R7-
8O7 WI;; 2RE ;O,I-/ "R.E,. E5ery FOREX tra&er has. "he secret isC that a
consistentC &iscip(ine& tra&erC at the en& of the &ayC a&&s up 4ore winnin' tra&es than (osin'
tra&es.
When you an& see on your chartsC without any &ouAtC that you are in a (osin' tra&eC &onHt
>eep (osin' 4oney. Most of the no5ice tra&ers are (owerin' their stop (oss Fust to :pro5e they
are ri'ht< or :hopin' that the 4ar>et wi(( re5erse<. PPN of these tra&esC are en&in' up with
4ore (osses. Most of the profitaA(e tra&es are usua((y Mri'htM i44e&iate(y.
Re4e4AerC s4art tra&ers >now there are 4any other opportunities. C7" your (osses short
an& co4poun& those winnin' positions.
R7;E 2= -ERER ERER tra&e FOREX without p(acin' a ,top ;oss Or&er.
$;CE a ,"O$ or&erC ri'ht a(on' with your E-"R8 or&erC 5ia your on(ine tra&in' stationC to
pre5ent potentia( (osses.
Before initiatin' any tra&eC you ha5e to ca(cu(ate at what point 9 price= you wou(& Ae wron'C
Aecause the 4ar>et chan'e& &irectionC an& wou(& want to cut your (osses.
"o 4a>e profitsC in the FOREXC a tra&er can enter the 4ar>et with a 6Auy position6 9>nown
as 'oin' M(on'M= or a 6se(( position6 9>nown as 'oin' MshortM=.
s an exa4p(e (etHs assu4e youH5e Aeen stu&yin' the E7RO. "he E7RO is paire& first with
the 7.,. &o((ar or 7,..
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8our tra&in' 4etho&sC ru(esC strate'iesC etc.C te(( you that the E7RO wi(( rice in the next 2
wee>sC ,o you Auy the E7R/7,. pair 4eanin' you wi(( si4u(taneous(y Auy E7RO,C an&
,E;; &o((ars=.
8ou open up your exce((ent tra&in' station software 9pro5i&e& to you for free Ay Fenix
Capita( Mana'e4entC ;;C www.fenixcapita(4ana'e4ent.co4 = an& you see that the
E7R/7,. pair is tra&in' at:
E7R/7,.: *.2+*+/*.2+*%
s you you Ae(ie5e that the 4ar>et price for the E7R/7,. pair wi(( 'o hi'herC you wi(( enter a
6Auy position6 in the 4ar>et.
s an exa4p(eC (ets say you Aou'ht one (ot E7R/7,. at *.2+*%. s (on' as you se(( Aac>
the pair at a hi'her priceC then you 4a>e 4oney.
"o i((ustrate a typica( FX ,E;; tra&eC consi&er this scenario in5o(5in' the 7,./K$8 currency
pair:
REMEMBER ,e((in' 9M'oin' shortM= the currency pair i4p(ies se((in' the firstC Aase currencyC
an& Auyin' the secon&C 3uote currency. 8ou se(( the currency pair if you Ae(ie5e the Aase
currency 97,.= wi(( 'o &own re(ati5e to the 3uote currency 9K$8=C or e3ui5a(ent(yC that the
3uote currency 9K$8= wi(( 'o up re(ati5e to the Aase currency 97,.=.
&OW TO CA2C.2ATE PROFIT OR 2O!!?
"he $rofit Ca(cu(ationsC on the ,hortIse(( tra&e scenario Ae(owC 4ay see4 so4ewhat
co4p(icate& if youH5e ne5er Aeen in the FOREX 4ar>et AeforeC Aut this process is continua((y
ca(cu(ate& throu'h your Aro>er tra&e station 9software=. I show you this process Ae(ow so
you can ,EE how a $ROFI" 4i'ht occur.
"he current Ai&/as> price for 7,./K$8 is *+1.)+/*+1.)?C 4eanin' you can Auy D* 7, for
*+1.)? 8E-C or se(( D* 7, for *+1.)+ 8E-.
,uppose you thin> that the 7, .o((ar 97,.= is o5er5a(ue& a'ainst the 8E- 9K$8=. "o
execute this strate'yC you wou(& se(( .o((ars 9si4u(taneous(y Auyin' 8E-=C an& then wait for
the exchan'e rate to rise
8our tra&e wou(& Ae the fo((owin': you se(( * (ot 7,. 97, D*++C+++= an& you Auy * (ot K$8
9*+C1)?.+++ 8E-=. 9Re4e4AerC at +.2) N 4ar'inC your initia( 4ar'in &eposit for this tra&e
wou(& Ae D 2)+.=
s you expecte&C 7,./K$8 fa((s to *+@.)+/*+@.)?C 4eanin' you can now Auy D* 7, for
D*+@.)? Kapanese 8E- or se(( D* 7, for *+@.)+.
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,ince youHre short &o((ars 9an& are (on' 8E-=C you 4ust now Auy &o((ars an& se(( Aac> the
8E- to rea(iEe any profit.
8ou Auy 7, D*++C+++ at the current 7,./K$8 rate of *+@.)?C an& recei5e *+C@)?C+++ 8E-.
,ince you ori'ina((y Aou'ht 9pai& for= *+C1)?C+++ 8E-C your profit is *++C+++ 8E-.
"o ca(cu(ate your $L; in ter4s of 7, &o((arsC &i5i&e *++C+++ Ay the current 7,./K$8 rate of
*+@.)?
"ota( profit U 7, DP%B.@*
&OW TO REA# FOREX PRICE C&ART!?
Forex $rice ChartsC what .O they 4ean an& 2OW to use the4#
I4portant nu4erous facts as &iscip(ineC tra&in' ru(esC not Aein' 'ree&y etc.C Aut one of the
4ost i4portant thin's is:
;ER- to rea& the charts as Charts represent the (ifeA(oo& of the 4ar>et.
I a&4it that rea&in' chartsC an& interpretin' patternsC are 4ore an art than a s>i((. Base an&
app(y your entry an& exit &ecisions on 8O7R OW- co4Aine& 4etho&s of technica( an&
fun&a4enta( ana(ysis.
FOREX chartsC are easier to interpret an& to use. "hey ref(ect a s(ower 4o5in'C staA(e
econo4y of a countryC co4pare& to the stoc> 4ar>etC with its &ai(y &ra4a of co4pany
reportsC Wa(( ,treet na(ysts an& shareho(&er &e4an&s.
7n(i>e stoc>sC currency charts &o not spen& 4uch ti4e in tra&in' ran'es an& ha5e the
ten&ency to &e5e(op stron' tren&s. Further4oreC Forex with its ? Mayor currencies is easier
to ana(yEe than tens of thousan&s of stoc>s.
9Mayor currencies are: 7,./K$8C E7R/7,.C /B$/7,. an& 7,./C2F=
"he co4p(i4entary FREE (i5e chartin' softwareC with the u(ti4ate cuttin' e&'e techno(o'y
pro5i&e& Ay http://www.fenixcapita(4ana'e4ent.co4/ C wi(( Ae aAso(ute(y sufficient for you to
ana(yEe an& watch any one currency pair. 7n&erstan&in' Fust a few Aasic points aAout the
technica( ana(ysis of currency chart can (ea& to increase& profit potentia(.
$ricin' I $rice ref(ects the perceptions an& action ta>en Ay the 4ar>et participants. It is the
&ea(in' Aetween Auyers an& se((ers in the O5erI"heICounter 9O"C= or :interAan>< 4ar>et
that creates price 4o5e4ent. "hereforeC a(( fun&a4enta( factors are 3uic>(y &iscounte& in
price. By stu&yin' the price chartsC you are in&irect(y seein' the fun&a4enta( an& 4ar>et
psycho(o'y a(( at once C after a(( the 4ar>et is fe& Ay two e4otions I /ree& an& Fear V an&
once you un&erstan& thatC then you Ae'in to un&erstan& the psycho(o'y of the 4ar>et an&
how it re(ates to the chart patterns.
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.ata Win&ow Chart V FCM an& 4ost on(ine chartin' stationsC when you c(ic> on a price Aar
or can&(estic>C it wi(( &isp(ay a s4a(( Aox of &ata usua((y ca((e& a &isp(ay win&ow which wi((
contain the fo((owin' ite4s:
2 U 2i'hest $rice
; U ;owest $rice
O U Openin' $rice
C U C(ose $rice 9or ;ast $rice=
"he 4ost co44on types of price AarsC use& in FOREX tra&in'C are the Bar Chart an& the
Can&(estic> chart:
Bars Charts I
$rice Aars are a (inear representation 9a (ine= of a perio& of ti4e. "his enaA(es the 5iewer to
see a 'raphic representation su44ariEin' the acti5ity of a specific ti4e fra4e. s an
exa4p(eC I use *+ 4inutesC @+ 4inutes an& &ai(y ti4e inter5a( for 4y syste4s. Each Aar has
si4i(ar characteristics an& te((s the 5iewer se5era( i4portant pieces of infor4ation.
FirstC the hi'hest point of the Aar represents the hi'hest price that was achie5e& &urin' that
ti4e perio&. "he (owest point of the Aar represents the (owest price &urin' the sa4e perio&.
Re'u(ar Aars &isp(ay a s4a(( &ot on the (eft si&e of the Aar which represents the openin'
price of the perio& an& the s4a(( &ot on the ri'ht si&e represents the c(osin' price of the
perio&.
Can&(estic>s I Kapanese Can&(estic>sC or si4p(y Can&(estic>s as they are now >nownC are
use& to represent the sa4e infor4ation as $rice Aars. "he on(y &ifference is that the
&ifference Aetween the open an& c(ose for4 the Ao&y of a Aox which is &isp(aye& with a
co(or insi&e. re& co(or 4eans that the c(ose was (ower than the openC an& the A(ue co(or
represents that the c(ose was hi'her than the open.
If the Aox has a (ine 'oin' up fro4 the Aox it represents the hi'h an& is ca((e& the wic>. If the
Aox has a (ine 'oin' &own fro4 the AoxC it represents the (ow an& is ca((e& the tai(.
Many interpretations can Ae 4a&e fro4 these Mcan&(estic>sM an& 4any Aoo>s ha5e Aeen
written on the art of interpretin' these Aars.
Chart Inter5a(s L "i4e Fra4es:
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chart "i4e ,ca(e L $erio&C or ti4e fra4eC Aasica((y refers to the &uration of ti4e that
passes Aetween the O$E- an& the C;O,E of a Aar or can&(estic>.
For instanceC with your Aro>er softwareC you wi(( Ae aA(e to 5iew a currency pairC in a *Ihour
ti4e fra4e o5er a 2I&ay perio&C )I&ay perio&C *+I&ay perio&C 2+I&ay perio& an& %+I &ay
perio&.
Most of the shortIter4 ti4e inter5a(s 9)I4in an& *I4in charts= are use& for entry an& exit
points an& the (on'erI ter4 ti4e inter5a(s 9*Ihour an& &ai(y charts= are use& to see where
the 'enera( tren& is.
&OW #O E(ono*i( E+ents i*pa(t $lo6al Curren(ies7
When I as>e& se5era( tra&ers aAout their thou'hts aAout usin' fun&a4enta( ana(ysis as a
part of their tra&in' &ecisionsC I ha5e recei5e& two opposite responses.
RE,$O-,E of "ra&er
Fun&a4enta(s that you rea& aAout are typica((y use(ess as the 4ar>et has a(rea&y
&iscounte& the price. I a4 (oo>in' at 9*= the (on' ter4 tren&C 92= the current chart pattern an&
9%= i&entifyin' a 'oo& entry point to Auy or to se((.
RE,$O-,E of "ra&er B
I a(4ost a(ways tra&e on a 4ar>et 5iew. I &onHt tra&e si4p(y on technica( infor4ation a(one. I
use technica( ana(ysis an& it is terrificC Aut I canHt initiate or ho(& a position un(ess I
un&erstan& why the 4ar>et shou(& 4o5e.
"here is a 'reat &ea( of hype attache& to technica( ana(ysis Ay so4e technicians who c(ai4
that it pre&icts the future.
"echnica( ana(ysis trac>s the pastQ it &oes not pre&ict the future. 8ou ha5e to use your own
inte((i'ence to &raw conc(usions aAout what the past acti5ity of so4e tra&ers say aAout the
future acti5ity of other tra&ers.
For 4eC technica( ana(ysis is (i>e a ther4o4eter.
Fun&a4enta(ists who say they are not 'oin' to pay any attention to the charts are (i>e a
&octor who says heHs not 'oin' to ta>e a patientHs te4perature. If you want to Ae a
successfu( tra&er in the 4ar>etC you a(ways want to >now where the 4ar>et isI up V &ownI
tren&in' or choppy .8ou want to >now e5erythin' you can aAout the 4ar>et to 'i5e you an
e&'e.
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"echnica( ana(ysis ref(ects the 5ote of the entire 4ar>etp(ace an&C thereforeC &oes pic> up
unusua( Aeha5ior. By &efinitionC anythin' that creates a new chart pattern is so4ethin'
unusua(.
It is 5ery i4portant to stu&y the &etai(s of price action to see an& oAser5e. ,tu&yin' the
charts is aAso(ute(y crucia( an& a(erts to existin' &ise3ui(iAriu4 an& potentia( chan'es.
For forex tra&ersC the fun&a4enta(s are e5erythin' that 4a>es a country tic>.
"he re(ease of econo4ic L inf(ation in&icators 9i.e.C consu4er spen&in'C e4p(oy4ent cost
in&exC 'o5ern4ent spen&in'C pro&ucer price in&exC etc.=C po(itica( actorsC 'o5ern4ent po(icy
or an in&i5i&ua( e5ent can set the 4ar>et in a frenEy. "hese ha5e to Ae consi&ere& when
4a>in' the &ecision : to tra&e or not to tra&e.<
"echnica( ana(ysisC is a way of usin' historica( price &ata in &ifferent ways to pre&ict the
future price of a currency pair.
Fun&a4enta( ana(ysis is a 5ery effecti5e way to forecast econo4ic con&itionsC Aut not
necessari(y exact 4ar>et pricesC an& you ,2O7;. tra&e in a'ree4ent with the supportin'
technica( in&icators.
Forei'n exchan'e tra&ers put the 4ost e4phasis on technica( ana(ysisC Aecause tra&ers
aroun& the wor(& use si4i(ar charts an& too(s in pre&ictin' 4ar>et tren&s.
"he reason the FOREX 4ar>et can Ae so pre&ictaA(e so4e ti4es is that if the 4aFority are
usin' the sa4e 'raph for &eter4inin' patterns an& tren&sC then it is hi'h(y (i>e(y that they wi((
act in a si4i(ar 4anner.
,o se5era( thousan& tra&ers who ha5e a(( charte& the sa4e resistance (ineC for exa4p(eC wi((
4ost (i>e(y either set their tra&es an& &irection confor4 to that (ine.
When fun&a4enta( &ata is 4a&e a5ai(aA(e to the puA(ic there is a reaction fro4 in5estors an&
specu(ators.
Infor4ation in the for4 of news an& econo4ic in&icators is 4ore 5a'ue than that of technica(
in&icators. "here is a (ot of 'ray area in this type of ana(ysis. "he 4ar>et wi(( u(ti4ate(y react
to how peop(e thin> the econo4ic &ata co4pares to the current 4ar>et situation.
Econo4ic in&icators usua((y re5ea( infor4ation that M,hou(& cause a currency to 'o up in
priceM or MMay cause a currency to 'o &ownM. "he wor&s :,2O7;.< L :M8< in the 3uotes
aAo5e re5ea( the a4Ai'uity of the fun&a4enta( &ata.
2ere is an exa4p(e of what ana(yEin' fun&a4enta( &ata is (i>e. ;etHs suppose there are six
econo4ic in&icators 9there are a (ot 4ore=.
;etHs ca(( our six in&icators *C 2C %C ?C )C an& @. -ow we wait for the &ata fro4 our in&icators
to Ae puA(ishe& in a financia( 4a'aEine or at an on(ine source. We 'et the rea&in's for our
econo4ic &ata for the E7RO as fo((owin':
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In&icator *: is in a ran'e where the Euro 4ay 'o up
In&icator 2: is in a ran'e where the Euro shou(& 'o up
In&icator %: is in a ran'e where the Euro cou(& 'o &own
In&icator ?: is in a ran'e where the Euro usua((y 'oes &own
In&icator ): is in a ran'e where the Euro cou(& 'o up
In&icator @: is in a ran'e where the Euro 4ay 'o &own
By (oo>in' at the aAo5e in&icatorsC you &onHt >now what the Euro is 'oin' to &o.
Further4oreC currencies are a(ways tra&e& in pairs. ,o you wou(& ha5e to 'et the
fun&a4enta( &ata for another currency pair an& co4pare it with the E7RO. I thin> you can
i4a'e that this is not a si4p(e tas>.
I &o not want to &iscoura'e you away fro4 fun&a4enta( &ata. "he Aest way to (earn is to
(earn aAout one piece of econo4ic &ata at a ti4e. E5entua((y you wi(( Aui(& a puEE(e fro4 a((
of the fun&a4enta( an& technica( &ata an& 4a>e 4ore infor4e& tra&in' &ecisions.
&OW TO predi(t the Future ?
Ay stu&yin' the $ast 9"echnica( na(ysis=:
*= "he Aest tra&ers &onHt &iscount one or the other Aut un&erstan& that ha5in' an
un&erstan&in' how the fun&a4enta(s inf(uence 4ar>et senti4ent 'i5es hi4/her an e&'e o5er
those tra&ers who &onHt.
2= In 4y opinionC "EC2-IC; ana(ysis is the easiest an& 4ost accurate way of tra&in' the
FOREX 4ar>et.
%= M"he nu4AerHs &onHt (ieM I a(( a5ai(aA(e infor4ation an& its i4pact on the 4ar>etC are
a(rea&y ref(ecte& in a currencyHs price.
?= $rices 4o5e in tren&s I the forei'n exchan'e 4ar>et is 4ost(y co4pose& of tren&s an&
therefore a p(ace where technica( ana(ysis can Ae 5ery effecti5e.
)= 2istory repeats itse(f I o5er ti4eC certain chart patterns Aeco4e consistentC pre&ictaA(e
an& 5ery re(iaA(e. "he 3uestion is ,EEI-/ the4.
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$RICE, MORE I- "RE-.,
"he tra&ers who &onHt Ae(ie5e this oA5ious(y ha5e no nee& to i4p(e4ent a tra&in'
4etho&o(o'y on technica( ana(ysis. ButC research has shown that those who tra&e Mwith the
tren&MC 'reat(y i4pro5e their chan'es of 4a>in' a profitaA(e tra&e.
Fin&in' the pre5ai(in' tren& wi(( he(p you Aeco4e aware of the o5era(( 4ar>et &irection an&
offer you Aetter 5isiAi(ityCespecia((y when shorterIter4 4o5e4ents ten& to c(utter the picture.
2OW &oes technica( ana(ysis he(p to &eter4ine what the tren& is an& 2OW to tra&e with
then tren& 5ersus a'ainst it#
E5en thou'hC you (earn you how to use an& rea& 5arious technica( in&icators to i&entify a
(on'I ter4 tren&C spot pre&ictaA(e chart patters an& use certain ru(es to enter an& exit a hi'hI
proAaAi(ity tra&eC an& e5en thou'h a (( this in5o(5es soun& (o'icC para4etersC 4etho&sC
for4u(asC &ataC an& researchC these technica( in&icatorsC Ay the4se(5esC are not the 2o(y
/rai( of FOREX tra&in'.
It ta>es &iscip(ine an& e4otiona( contro( to stic> with tra&in' fo((owin' throu'h the ine5itaA(e
4ar>et ups an& &owns. !eep in 4in&C 'oo& technica( tra&ers expect ups an& &owns.
Whi(h te(hni(al indi(ators are the -E!T?
-O-E I technica( in&icators shou(& si4p(y Ae co4ponents of your o5era(( custo4iEe&C
persona(iEe& tra&in' syste4C an& not a stan& a(one syste4.
"he oAFecti5es as a FOREX "echnica( "ra&er are:
*= "o fi'ure out the price action of the currency pair. $rice is the 4ain concern. If the
E7R/7,. is at *.222? an& 'oes to *.2+2+C *.*PB+C *.*P?+I the 4ar>et is in a &own tren&.
.espite what e5ery technica( in&icator 4i'ht pre&ictC if the tren& is &ownC stay with the tren&.
In&icators showin' where price wi(( 'o next or what it shou(& Ae &oin' are use(ess.
tra&er shou(& on(y Ae concerne& with what the 4ar>et is &oin'C not what the 4ar>et 4i'ht
&o. "he price te((s you what the 4ar>et is &oin'.
2= (ways re4e4Aer that technica( in&icators are on(y 'i5in' you confir4ations Aase& on
what the 4ar>et is te((in' you. ,o (isten to the 4ar>et an& (et it te(( you which 4etho&C
strate'y or techni3ues you shou(& use.
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