Online Forex Trading Introduction

The online Forex market, also known simply as Forex, FX or the foreign exchange market is the biggest trading market in the world, with daily Forex trading that exceed $2 trillion.

Even tough we are talking about a huge market, Forex trading is quite simply - the buying of one currency while at the same time selling of another currency. If the trader can predict correctly which currencies will drop and which will rise - he will benefit from his investment.

There are a lot of benefits in Forex investing over other investment markets.

Why is Online Forex Trading Profitable?

The online Forex market has existed since the early 70's. Only in the past few years though, it has become accessible to millions of people through the development of the internet. Because the Forex market is available 24 hours a day, it's the only market that allows you to trade at your convenient time.

Today, because the economy is much more dynamic than it used to be, and the world has become a global village, economic conditions in various countries are also constantly changing, according to such factors as production rate, inflation and unemployment.

As a result, the rate of a specific currency changes and moves up and down in comparison to other currencies. This is the main reason of the process of rate fluctuations in the online Forex market.

In order to evaluate and predict these Forex market changes a trader can use fundamental analysis or technical analysis as a tool for investment. Where as fundamental analysis is a more broad exploration into the economic factors influencing the online Forex, technical analysis uses charts and other indicators to asses price patterns taht re-occur over time and can help predict the forex market.

Foreign Currency exchange rate

Currency exchange rate is the ratio of one currency valued against another. For example, "EUR/USD exchange rate is 1.2505" means that one euro is traded for 1.2505 dollars. If you've already invested in other markets before, you'll find the Forex trading system quite similar, and the transaction to online Forex trading smooth. An example of a Forex trade: During October 2006 you buy 10,000 BRP when the BRP/USD rate was 0.56. A month later, the exchange rate grew to 0.58. This means a profit of $350 in less than a month time.

Online Forex Trading Profits

Another example of an online Forex trade: If you buy EUR/USD, this means you are buying euros, and simultaneously are selling dollars. Your expectation therefore is that the euro will appreciate (go up) relative to the US dollar.

If you believe that the US economy will weaken and this will hurt the US dollar, you would execute a buy EUR/USD order. By doing so you will buy euros in the expectation that the currency will appreciate against the US dollar. If you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a sell EUR/USD order. By doing so you have sold euros in the expectation that they will depreciate against the US dollar. More information concerning online Forex trading is available at Forex Floor.

 

Forex trading History Explained

The modern online Forex history begins in 1973, even though currency trading has been around since the times of ancient Egypt. At that time the market was extremely primitive, and there were no advance trading tools as today's fundamental analysis, for example.

The first currency coins were used at the times of the pharos, and the first paper notes were then introduced by the Babylonians. Later on, the roman coin called aureus was used, which was followed by the denarius. Both coins had worldwide use, making them the first global foreign currency coins.

The Bretton Woods System (1944-1973), came after the great instability of World War II. England and other European countries were left in ruins, after the war ended, while the US's economy was left relatively stable and strong.

The USD became the prominent currency after WWII, mainly because of the war. The Dollar also became the new global reserve currency, and remained so throughout the rest of the Forex history. This was agreed upon in the Bretton Woods conference, when all of the other foreign currencies were pegged to the USD, and a new international financial network was formed.

In 1971, the Smithsonian Agreement was signed by ten of the major financial powers, but it's attempt to improve stability to the current Forex history failed.

Free Floating exchange rates came into use when the Bretton Woods agreement ended. This occurred after this international financial system was in operation for three decades in the Forex history.

During 1973, the UK, facing financial problems, floated it's currency. Other currencies began to lose value, and this led the European economies to also float their currencies.

1994 saw the first online currency trading introduced to Forex history. This had a large impact on the development of the Euro currency, and introduced a new major contendor to the control of the USD in the Forex history. By 2002 the Euro became the official currency for 12 European nations, and in the past few years more nations have joined this agreement. The modern online forex history offered new options for the online trader, such as the use of margin account to leverage investments, and this is all thanks to the contribution of the internet to the forex history.

 

Why Forex Trading

If you want to know why the Forex trading market is superiors to other investor options such as Equities or the futures market, then you can rest assure that you'll find the answer in this page.

The best way to clarify the advantages of the Forex market is through a real example. In 1929, the stock market collapsed, causing many people and businesses from around the world to go broke. This also happened when the high tech bubble burst. The fear of a market crash is a concern that constantly dwells in the minds of investors, both professional and beginner ones.

In the online Forex trading market, There is no way for the market to crash. If you have read about what is the Forex trading market, then you know that when you buy a certain currency, you are at the same time selling another currency. When some currencies' price false, others' price rise.

So this is the most important advantage of Forex day trading. Unlike other markets, where in some cases all traders lose money, with Forex trading there are always traders that make a profit, at any given time.

Here are some other advantages of the Forex trading market:

·                      No commissions. Only in the Forex trading market are there no government fees, brokerage commissions, exchange fees and other unnecessary losses of cash. There are also low transaction costs between the bid and ask price.

·                      No middlemen. In this market there are no investors that take a percentage of the investment or the profit, and you transact directly with the pricing market agent.

·                      You can choose the size of your investment. The Forex trading lot is dynamic, and is set according to your preference. This lot can vary between large lots worth $10,000 to mini lots worth $25.

·                      High liquidity. In the Forex trading market you can buy and sell your currency at any time and place, regardless of the currency position, when the trade itself is done almost instantaneously.

·                      Trading in the margin. Forex trading consists of margin investments that increase your chances for higher profits by increasing your money's worth.

·                      Opened 24 hours a day. Because it's worldwide and operates in several time zones, the Forex trading market is the only market that you can trade in 24 hours a day.

With all of these wonderful advantages, there is no wonder more and more investors choose Forex trading as there main fund for investment. Because all transactions can be done online, you don't even have to leave your house!

 

Forex Vs Currency Futures

If you have read our article comparing forex to equities you already know why forex is a superior market in measuring up to the equities market. In this article we will evaluate the forex market in conjunction with the currency futures market. Of course the are various points of distinction between each of this markets – historical, philosophical and technical to name a few. In this article we will review some significant differences between the two markets that reflect the way you trade and make money in each of them.

One of the biggest advantages the forex market has to offer is its unparalleled volume. In fact, the amount of money traded every day on the forex market is more than 50 times bigger than the volume on the futures market. If you have read our previous forex trading articles you probably already know that the forex market is the biggest financial market in the world. Fact is that this size does not only indicate the popularity of the market but most of all it shows the amount of trading opportunities you can find on this market. The forex market offers a place for any trader, from the smallest pastime traders to the professional, high-rollers.

Margin accounts and leveraging in the forex market is quite different from the currency futures market. Currency futures brokers give different margin and take different commissions for 'day trade' and 'overnight' positions. Also, the margin rates that the futures brokers give usually depend on the size of the deal. On the other hand, forex brokers offer the same leverage and the same margin rates at all times, day or night and with no concern to the size of the trade.

The learning curve of a new trader in the forex market is not as steep as the one in the futures market. The methodology and quotes used in the forex market are very easily understood and are quite intuitive, even to new traders. The futures market on the other hand is completely different. The price quotes of currency futures are inversions of regular prices that are used only in this market. Furthermore, the futures market demands many complicated adjustments. To name a few, the futures prices include time factors, interest rates and discrepancies between interest rates of different currencies. This turns the futures market into a much less intuitive and friendly market.

In summary, the forex market has many significant advantages over the currency futures market that turn it into the natural choice for any entrepreneur or smart investor.

 

Forex Vs Equities

Any novice forex trader questions himself sooner or later – "Why did I choose the forex market, is it definitely the best financial market for me?" Usually this question arises from curiosity and nothing else, but curiosity to needs to be satisfied.

In the next two articles our team will point the evident advantages the forex market has over other well-known financial markets, starting with the famous US equities market. Any person with a feel for economics and trading experiences some sensation to the sound of Wall Street, but does it truly measure up to the colossal forex market?

First, the key benefit that the forex market offers is its 24-hour accessibility. When you are trading forex it doesn’t matter at all whether it is 5am or 5pm. Time differences and market dynamics make sure there will always be an eager trader somewhere around the globe looking for a deal. This feature gives you the privilege to respond to any financial developments, as soon as they transpire. Furthermore, the prices of forex can not be affected from after-hours trade.

An additional key aspect of the forex market is its unmatched liquidity. This legendary liquidity is derived from the market's immense size, more than 50 times larger than the total trade in the US stock exchange. None the less, it's seemingly impossible size, which sometimes creates certain repulsion, and its liquidity creates stability like in no other market. The forex market is one of the most solid financial markets throughout the modern financial history.

Online forex has many advantages that the equities market can't even dream of. The leveraging that online forex brokers present is significantly better than any possible offer you can find on the equities market. The margin that the online forex firms can offer is extremely larger than the standard 2:1 you'll get from your equity broker. The margin you get while trading forex can go even up to 100:1, and in some cases even 200:1. You are welcome to learn more about margin and leveraging in our "Margin trading overview.

Read more about other advantages in the next article that will compare the forex market to the equities market.

 

Understanding and Trading Forex Currency Pairs

Any Forex trading transaction is made of the buying of one currency and the simultaneous selling of another currency. The two Forex trading currencies being traded are called the currency pair. A currency quote is made of these two pairs of Forex trading currencies, situated together and divided by a line (for example, EUR/USD).

There are various Forex currency pairs to choose from. These are divided into major and minor currencies. Major currencies are the seven most frequently traded currencies, which include the USD, EUR, JPY, GBP, CHF, CAD and AUD. All other currencies are called minor currencies, and include the NZD (the new Zealand dollar) and the ZAR (the south African rand).

Cross currencies are types of Forex trading currency pairs that both do not consist of the USD. For example, the pair CHF/JPY, worth 84.50. This means that one Swiss franc is equal to 84.50 Japanese yen. Sometimes not all of the currencies are available for you to buy and sell, so you should check this factor out when choosing an online Forex trading site.

The first currency in a pair is called the base currency. In most Forex trading options this is the USD. The main exceptions for this are the EUR, GBP and the AUD currencies, which appear before the USD in a quote. The base currency will also appear before the quote currency when you use technical analysis with charts of different sorts.

The second currency in a pair is called the quote currency. This currency shows your profits and loses for the Forex trading transaction.

Following are example of major currency pairs:

·                      EUR/USD – Here the base currency is the EUR, and the quote is the USD.

·                      USD/JPY

·                      GBP/USD

·                      USD/CHF

·                      EUR/CHF – This is an example of a cross currency.

·                      AUD/USD

·                      USD/CAD

·                      NZD/USD

·                      EUR/GBP

·                      EUR/JPY

·                      BP/JPY

·                      CHF/JPY

·                      GBP/CHF

·                      EUR/AUD

 

Major Currencies and Major Participants of the Forex Trading Market

In the Forex trading market, you have several currencies to choose from. Most Forex trading deals are done using the major currencies. These are the seven most frequently traded currencies.

The major currencies include:

·                      USD – United States Dollar

·                      EUR – The European union Euro

·                      JPY – The Japanese Yen

·                      GBP – The UK Pound

·                      CHF – The Swiss Franc

·                      CAD – The Canadian Dollar

·                      AUD – The Australian Dollar

·                      All other currencies other than the major currencies are called minors

Trading these major currencies are banks, companies, investment firms, hedge funds and Forex trading brokers.

Banks do a lot of the trading themselves. These include trades that are done for the bank's clients and ones that are done for the bank itself. Banks can trade huge amounts of major currencies, depending on the size and funding of the bank.

Central bank can influence and change the Forex trading market by increasing interest rates, for example, or manipulating with other economic factors.

Companies are also important contenders in the Forex trading market, trading goods and services between countries and nations. With the some deals made of large companies, the Forex trading market is liable for rapid change and fluctuation. This is why it is important to stay updated with economic factors.

The behavior of companies in the Forex trading market is analyzed through fundamental analysis, so changes can be predicted.

The private investors, trading major currencies from all around the world, consist of only a small portion of Forex traders. Nonetheless, these traders can take an active part in the Forex trading market whenever they want to, and in doing so join other banks and large companies. Using margin Forex trading also allows you to participate in Forex trading of major currencies for larger sums of cash.

 

Fundamental Analysis Versus Technical Analysis in the Forex Trading Market

The main difference between fundamental versus technical analysis of the Forex trading market is that, while fundamental analysis uses economic, political, social and other factors that affect supply and demand of the trading Forex market to foresee price movements, technical analysis uses mathematical and graphical charts of previous market action, in order to analyze the Forex trading market.

The basic difference between Forex fundamental and technical analysis is therefore that:

·                      Forex Fundamental analysis uses various factors that influence supply and demand to predict the currency change.

·                      Technical analysis uses charts of previous currency change to predict the currency change.

Cause and Effect of Market Price - Forex Fundamental analysis looks at causes of currency change. Forex Technical analysis looks at effects. Fundamental analysis causes, such as government policy, can later be seen in the technical analysis charts that constitutes the effects of the certain policy.

Types of Analysts - Fundamental investors would research a currency from top to bottom, looking at interest rates, balance of trade, the gross domestic product, unemployment and other economic factors, in order to see if a certain currency is about to rise or drop in value. Technical investors, on the other hand, would look at the price action of the Forex trading market, and view chart details such as open, high, low, close, volume and open interest for the currency price of a certain time to notice changes in the currency. This is why fundamental analysis is more suited for long term Forex forecasting, while technical analysis foresees short term changes in the Forex trading market.

Combination analysis - The most recommended method of Forex trading is to use both fundamental and technical analysis together. This way, you study fundamental analysis of a currency, and find out what are it's economic factors and what is it's future direction. After this you turn into technical analysis, and study that currencies charts, trying to see the right timing to step in, and buy/sell the certain currency.

After you use both types of analysis you can be sure you are covered both ways, and you can now turn to invest in Forex trading, with the confidence that you know what currency to trade with, and when to trade as well.

 

Fundamental Analysis Introduction

Fundamental analysis is the second major method that was developed as a system to predict future currency prices. When one says fundamental analysis he means to the study of the foundation elements that affect a certain economical system. When speaking about currency prices it usually means the study of various economical indicators, social trends and governmental policies, among many other factors. A fundamental analyst can tell you more than just the future price but also how it came to be and what will affect this price in the future.

There are several problems with pure fundamental trade. When dealing with the forex market, you need to delve into complexities of each countries economy, including its policy and social influences. Maintaining a flowing and stable fundamental representation of the global forex market with its immense size and dynamicity can be extremely hard. None the less, your understanding of global economy and the flow of the forex trading market will increase greatly as you dig dipper into the complexities of the fundamental analysis.

Now days it is really hard to state that one is a pure fundamentalist or a technician. Although both groups are indisputably different and place their focus on their chosen systems, some balance is still needed. A technician will still have to take into account some crucial economical data, while a fundamentalist will still need the assist of data generated charts. In general you can say that fundamental analysis helps to produce a solid trading strategy while technical analysis helps you to select the exact entry and exit points. The fundamental trader approaches each trade with the knowledge id the underlying process that make an economy work.

 

Forex Economic Indicators

The execution of fundamental analysis in the Forex market is done through the use of economic indicators. These are indicators that point to the state of some economical factor in the country whose currency you wish to trade.

Economic indicators are published by various sections of the government and private companies. These statistics are analyzed by market investors to predict the direction of the Forex trading market. Forex economic indicators are published at fixed time intervals, and are followed by any serious online Forex trader.

Because so many people are tuned to use them, Forex economic indicators have a large impact on prices of currencies of the Forex trading market. Most traders do not use fundamental analysis because economic indicators seem difficult. This however is false because following simple guides can help you stay updated with the important Forex economic indicators easily.

Starting to use Forex economic indicators

To get started, you should first keep a log of all the important Forex economic indicators' release dates. Keep a log or make a subscription to one of the economic journals, so you'll know the most important factors of that time. If you are trading in JPY, the Forex economic indicators need to be relevant to the currency type, of course.

Each economic indicator tells you about a different aspect of the economy, and this should be translated in turn into the predicted movement of the currency price. Make sure you understand which aspect the indicator is about. For example, know that the GDP measures the growth of the economy while the PPI measures inflation. Don't worry, with some experience this will come natural.

Different indicators have changing importance, according to the country's currency. Some currencies might have inflation indicators as key economic indicators while others will have employment rates as key indicators. This is also something you should find out and read about at various books and online guides.

There are leading economic indicators, which change before a particular Forex trend is set, and lagging indicators, that change after the economy had begun to follow a certain pattern. Both indicators should be used, depending on the currency's situation.

Major Forex Economic Indicators

·                      The Gross Domestic Product (GDP) - The sum of goods and services produced by domestic or foreign companies.

·                      Industrial Production - A measure of the production change, industrial capacity and resources of a country's factories, mines and utilities.

·                      Purchasing Managers Index (PMI) - A monthly index of a country's manufacturing conditions, including new orders, supplier delivery times, inventories, prices, employment, export orders, and import orders.

·                      Producer Price Index (PPI) - A measure of price changes in the manufacturing sector.

·                      Consumer Price Index (CPI) - A measure of the average price level paid by urban consumers for a fixed basket of goods and services.

·                      Employment Cost Index (ECI) - A measure of the number of jobs in more than 500 industries in all states and 255 metropolitan areas.

Forex Trading Inflation indicators and Interest Rates

Forex inflation indicators are used very commonly when traders analyze the Forex market. The inflation effects the interest rates, which in turn can effect the currency markets.

In order to fight inflation, interest rates are raised, and thus the country's currency is strengthened in relation to other currencies. In this way, in the short term, If inflation rises, the currency also rises in value.

On the other hand, if interest rates go higher, then investors withdraw from their investment in the country, and the currency weakens. Thus, in the long run. If inflation rises, the currency will eventually drop in value.

As a counter measure of rising inflation indicators, interest rates rise usually after meeting of BOE (Bank of England), FED (US Federal Reserve), ECB (European Central Bank), BOJ (Bank of Japan) and other central banks.

In order to measure inflation traders use different economic indicators.

Economic Indicators that Influence Inflation Indicators

Gross Domestic Product (GDP) – This measures the total market value of all goods and services that companies make within the country. This is an indicator of the growth pace of a country, and can tell the trader much about the prospect of inflation indicators.

Producer Price Index (PPI) - This measures price changes in manufacturing. It measures the changes in selling prices for the various manufacturers. The prices of manufacturing are at a close link with inflation indicators, and thus can help predict the online Forex trading direction.

Consumer Price Index (CPI) - This measures the average price that consumer pay for a fixed basket of goods and services. When the inflation indicators point to a rising inflation level, goods' prices also rise, and this can be viewed through the CPI.

These measures have been used throughout forex history to evaluate the market and make hard decisions about investments. They should also be used by you when you make fundamental analysis.

 

Forex Employment Indicators

In this page we cover the most important employment indicators for the online Forex market, including the ECI, the household survey and the establishment survey. Employment indicators are important economic indicators, and are used often for fundamental analysis of the online Forex trading market.

The Employment Cost Index (ECI)

The ECI is an important Forex employment indicator, and is published in a quarterly report from the U.S. Department of Labor. It measures the growth of employees' compensation, and this includes the wages and benefits that employees get.

The information in the survey is based on a report that is held at the end of the month every quarter. The information that is tracked by the ECI is the wages movements, the fringe benefits and the bonuses that are given to employees at various levels of the organizations.

The report is used to foresee the online Forex trading currencies price movements. As employees increase the pressure for wage raises, this raises inflation levels, as consumer prices move up in their prices. The inflation is assumed to go up if the ECI increases. This in turn lowers the online Forex currency price.

The ECI is a Forex employment indicator that measures the number of jobs in more than 500 industries that cover 50 states and 255 metropolitan areas.

The Employment Report

This report contains two employment reports inside: the household survey and the establishment survey.

The household survey is an employment indicator concerned with households, and is smaller, covering only 50,000 households.

the establishment is about businesses, is more comprehensive and thus it is preferred by analysts of the online Forex market. It covers 400,000 businesses with 47 million people.

The Establishment Survey

Nonfarm Payrolls - This is a very important employment indicator for the establishment report, and has crucial importance for online Forex trading. it measures how many people are there on payrolls for non-agricultural businesses.

Average Workweek - This measures the average hours worked nonfarm payroll employees, and is a fine judge of the overall strength of the employment report.

Aggregate Hours Worked - This index combines the two previous indexes together.

Average Hourly Earnings - This employment indicator gives us a good idea of the personal income growth during the month, and is especially critical in times of strong economic growth, as an evidence of increasing wage pressures, which can influence the online Forex trading market considerably.

The Household Survey

The Unemployment Rate - This index is calculated through the division of the number of people unemployed by the number of people in the labor force.

There are other employment indicators in the employment report but these are the relevant ones for the online Forex trading market.

 

Consumer Spending Forex Trading Indicators

There are two important consumer spending indicators for the online Forex trading market, the consumer credit and the consumer price index (CPI). These Forex indicators are used in Forex trading fundamental analysis in order to foresee price changes in foreign currency.

Consumer Price Index (CPI)

This Forex trading economic indicator is published by the Bureau of labor statistics in the U.S. Department of Labor, every 13th of a month. The economic index is relevant for the passing month, and measures the price of a fixed basket of goods and services that is bought by consumers. This is the most used measure of inflation, an important tool for the Forex trading market.

It is important to state that this Forex economic indicator does not measure technological commodities which change in price, and this is something the CPI has been criticized for.

When you use the CPI to measure Forex trading price changes, you should always remember to take into consideration the movements in the food and energy prices, because they can change and rise or drop regardless of the Forex currency or the inflation levels.

The CPI is also monitored on it's yearly Forex Trading indicator that tells a great deal on the condition of the Forex inflation levels of a currency.

Consumer Credit Forex Indicator

The consumer credit index is published by the federal reserve every fifth business day of the month. This Forex trading measure is used to evaluate consumer spending. This measure is liable to make considerable changes and fluctuations in its value.

Consumer credit consists of three categories: auto, revolving and other. All in all this indicator is less important than the CPI, but it can also help you gain an understanding of the online Forex trading market.

 

Introduction to Technical Analysis

Any forex trader must apply a certain method in order to predict the future price of a certain currency, that's a given fact. The entire concept of speculative forex trading is based upon future fluctuations in currency prices. You make profit by buying a certain currency in one price and selling by another.

Therefore, the most important thing for any trader, novice or expert, is to have some sort of prediction to future price changes. Thus came to life several different methods of market analysis, each tries to incorporate different methods and data in order to give some sort of prediction to the future price of various currencies.

The first method we will review in this series of articles isTechnical Analysis. Technical analysis is based on the concept that it is possible to predict future prices using only market generated data. All the data and history regarding a price is represented in various charts and imply assorted methodologies. Every trader, no matter what trading style he uses, uses this method at some point. At the very least, these charts help to determine what the ideal buy or sell position is, at any given time. It helps to give a broader look on he trends and patterns in the market.

Many critics accuse the Technicians of ignoring the fundamentals of the market, but they claim in return that all of the market's fundamentals are already represented in the charts. In their opinion any fundamental market rule is already enveloped in the current price and more importantly in the price's history.

Forex trading can be easy using the right reading materials and tools. Follow our latest articles and download our software here at Forex Floor.

 

Forex Trading Bar Charts

A Forex bar chart is one way you can display the Forex trading market prices, which you can use for technical analysis.

A bar chart is made up of:

·                      The high - The highest price of the session, appears as the upper point of the bar.

·                      The low - The lowest price of the session, appears as the lowest point of the bar.

·                      The close - The closing price for the session, appears as a horizontal line to the right of the bar.

·                      The open - The open price for the session, appears as a horizontal line to the right of the bar.

Forex trading Bar charts are the most popular type of Forex charts, and the popularity is because they are easily built and read. A Forex bar chart can detail currency activity of an intra day, daily, weekly or monthly time frame, and this is the reason why with the use of bar charts, forex trading is made easy.

With Forex bar charts the task of spotting patterns and trends become quite easy. Data on bar charts is represented individually, where each price field is a single bar.

Analyzing Bar Charts

When you view a Forex bar chart you can derive the following detail:

·                      The tallest bar

·                      The shortest bar

·                      Bars growing or shrinking over time

·                      The ratio between one bar and the adjacent one

There are several useful Forex trading Bar chart indicators that can be used in a bar chart:

·                      Mean - The average height of all bars

·                      Maximum - The tallest bar of the session

·                      Minimum - The shortest bar of the session

·                      Sample size - The number of Bars in a session

·                      Standard deviation - The width of the bar spread

Online bar charts can curve the path for your understanding of what is the Forex trading market, so take you're time and read all that we offer in this website.

Forex Trading Candlestick Charts

Forex Candlestick charts includes a real body, and two lines above and below it. much like bar charts, candle stick charts also have open, high, low and close indicators.

·                      The high is the top point of the upper line.

·                      The low is the bottom point of the lower line.

·                      The close is the top point of the real body.

·                      The open is the bottom point of the real body.

·                      A hollow candlestick (a white real body) occurs when the close is above the open.

·                      A filled candlestick (a black real body) occurs if the close is below the open.

·                      Shadows are the lines above and bellow the real body, where the top one is the high and the lower is the low.

The history of Forex trading candlestick charts goes further back than Forex history, going back centuries when Japanese rice traders used it to calculate profits. Today candlestick charts are a highly recommended method for technical analysis, and in recent years its popularity has grown immensely.

Next are examples of different candlestick chart patterns:

·                      A bullish pattern, where the Forex trading currency opened close to its low and closed near the high, indicating an uptrend.

·                      A bearish pattern, where the currency opened close to its high and close near its low, indicating a downtrend and a currency drop.

·                      The hammer pattern is seen with a long lower shadow, and a small filled real body. A hammer is said to indicate the start of a change from a downtrend to an uptrend.

·                      The star pattern is seen as upper and lower shadows separated by a line that indicates an absence of a real body. This indicates either a change in trend or indecision.

Many Forex trading experts, and people who practice forex trading for a living, choose candlestick charts when analyzing the market, and after you practice using them you'll probably prefer them too.

 

Forex Trading Trends - Uptrends, Downtrends and Sideway Trends

Forex trading trends are used in technical analysis, in order to view the general direction of the currency. Trends are identified as uptrends, downtrends and sideway trends. Without the use of trends Forex analysts wouldn't have the ability to predict the direction of the currency price at any given time.

Forex Trading Uptrends

An uptrend is a Forex trading trend that occurs when the general direction of the Forex trading currency you are trading is upward.

Forex uptrends are used by traders to make profits while the trend lasts and until it reverses. The goal of most technical traders is to identify a strong uptrend and to profit from it until it reverses, and with this Forex trading trend strategy, you are able to cut down on unnecessary losses. The best way to use uptrends is to sell the currency once the new peak become lower than the previous peek.

Forex Trading Downtrends

A Forex downtrend occurs when the general direction of the Forex currency you are trading is downward.

To use downtrend is similar to uptrend use, you simply monitor the currency chart and notice when one peek becomes higher than the previous peek, indicating a reverse in the Forex trading trend direction. Downtrends are also useful tools to determine potential trading losses

Forex Trading Sideway Trends

There isn't much to say about sideway trends, except that they are trend stages in between uptrends and downtrends. Sideway trends usually do not tell much about the currency situation, even though they can hint on a nearing reversal in the trend direction. These are Forex trading trends that are less frequent but still give important information for the online trader.

Now that you've learned all there is to know about Forex trading trends, go on and see how you can use it in the actual Forex trading market.

 

Forex Trading Support and Resistance Levels

In this Forex trading guide we will try to describe in detail exactly what support and resistance means in the following Forex trading lesson. Support and resistance levels are important indicators that can be used to set stop loss and take profit orders using technical analysis.

Support levels are the places where the price of the currency is expected to rise. This happens when there is enough demand for the currency in order to stop the downtrend and cause it to go up.

In order to recognize support levels while Forex trading, take a look at the Forex chart, and try to find a few lows that fluctuate around a horizontal line. This line will be set as the session's support level.

If a support level is penetrated, and the currency drops below it, then it becomes a resistance level. This is because when the currency reaches the support level again most traders will sell their currency and cause it to go down again.

Forex trading Resistance levels are also horizontal lines that appear upper side of the chart. Resistance levels are used to set the upper level of Forex trading, when supply levels surpass demand for the currency. After a resistance level is broken there is usually a change in the bid/ask price of the currency, and it sometimes leaps upwards.

I hope this Forex trading guide will help you make the right decisions in investments, and help you understand this concept of suport and resistance.

 

Forex Trading Moving Averages

Forex Trading Moving Averages is a technical analysis indicator that lets you see the average value of a currency over a period of time. In order to calculate moving averages for the last 20 days you add the 20 last currency prices and divide the addition by 20. Because days continue to advance, the sum you'll get through Forex trading will change on a daily basis, and this is why it is called moving averages.

The most commonly used Forex trading moving averages timeframes are 20, 30, 50, 100 and 200 days. Each timeframe can give you a different view and perspective on the future of the currency, and this is why all of these figures are used periodically. Using these different timeframes you can increase your profits and also protect you lots from unnecessary losses, so use it wisely, and frequently.

If the Forex trading timeframe is shorter, price changes will affect it more. If the timeframe is longer, the moving average will be smoother and less sporadic. Moving averages are used in order to recognize a certain trend the Forex trading currency is following, and also to view a clearer and straighter graph, without any added "noise".

Forex trading moving averages are the most popular indicator to be used for various Forex trading strategies and technical analysis.

How to Choose a Forex Trading Website

So you've decided, rightfully so, that online Forex trading is a profit venue that you want to explore. This is a smart choice because of the earnings options and other advantages the Forex trading market offers.

If you are wondering how to get started in the online Forex business just follow the following page guidelines and you'll be on your way to become a better forex trader.Choosing the initial forex broker is important even before you try them out and trade. To select the right Forex trading broker for you, you need to examine the following factors and then decide which forex broker suits you best.

·                      choose the right program for you - You first need to examine each of the websites, according to the services they offer. Some websites are more into online Forex trading advice, for example. If this is not something you are looking for, you need to find a different online Forex trading agent.

·                      Check the commissions before choosing a Forex trading website - Some websites include a registration fee for making the Forex trade while others, including major Forex websites, are free. A website that has fees for Forex trading doesn't mean it is a more serious site.

·                      Examine the Forex trading Website - When you enter a website for Forex trading, examine it and notice the quality of the website's layout. The main factor in online Forex trading websites is the process of entering an investment so pay attention especially for this aspect.

·                      Choosing a Trading Analysis Package - Check for technical analysis integrated in the Forex trading site.Some websites offer Forex trading options which includes integrated charting and technical analysis packages. These packages can make it easier for you to analyze the current market after getting some experience of Forex trading, and is it an important option for a long term investor.

·                      Mini Accounts VS. Paper Trading - Think about an initial investment in mini forex trading accounts. If you are an online Forex user who is just starting out, consider opening a mini Forex trading account, at least for a short while. Some mini accounts are as small as 100$. Mini accounts are more recommended than paper accounts, which are hypothetical accounts that you invest in without real cash. This is because mini Forex trading accounts are closer to the real Forex trading accounts, and your investment will be less risky and sounder, considering you do still risk you're funds in mini accounts.

 

How to Open a Forex Trading Account

After you learn about the advantages of the Forex market, you'll want to start trading right away. To understand the Forex trading platform you'll first need to learn how to open your online Forex trading account, wherein all of the currency transactions take place.

Opening an account consists of four basic steps:

·                      First, select your account type.

·                      Then, register and enter your deails on the website.

·                      Next, you have to activate and confirm your account.

·                      Finally, download the Forex trading platform and start trading with your account.

Selecting a Forex trading account type

Forex trading sites offer different account types. Make sure you find the right trading site, and then the job of selecting the account type will be easy.

One of the differences between Forex Trading account types is the size of the account. There are Forex trading accounts as well as mini accounts that vary in size, and can range between $25 to $10,000. The account size will determine which lot investments are available to you. Create the account according to the funds you want to invest with, and make sure you do not risk to much of them right from the start.

You should also make sure you choose a Forex trading spot account, rather that a futures account. This is the most popular account type, as most online traders want their trades to be done instantaneously.

Forex trading account registration

When you open a Forex trading account, you will be asked to give various personal details, including your credit card details, so you will be able to make real cash trades. Some sites offerForex trading free training wherein you are not required to give out your credit details in order to open and use the demo account.

In most cases Forex trading registration is done online, even though sometimes you are required to register by fax. This is uncommon though and only occurs for the smaller Forex trading sites.

Forex account activation and confirmation

Because we are dealing with real money accounts, you are required to verify your details and your email, through various needed steps. Before you sign the terms and conditions of the Forex trading account, make sure you understand what the site is offering. You should make sure you understand about the various conditions that include:

·                      The Forex site's hours of operation and the availability of live support.

·                      The bid/ask spread that the site offers for major currencies, in relation to what other sites offer.

·                      Make sure that proper leverage is available through the margin per trade.

·                      Find out about The minimum account size and lot size.

·                      Check that there are no small print or hidden commissions that the site's operators prefer you don’t know about.

·                      If you can, try out the Forex trading platform, as well as the charting and technical analysis options beforehand.

·                      Check the general contract and make sure you save it along with the requoting policy on your computer.

Now you can open your Forex trading account with a clear mind and focus on investing properly.

 

How to Place Different Types of Forex Trading Orders

In this page we explain about the different order types available for online Forex trading. The most important thing to remember about placing Forex trading orders is this: Always understand the orders you place. Never place an order which you are not entirely knowledgeable about. You'll be able to see the orders available for you after you open your trading account, so soon after check and learn about the different ones you can make.

There are various Forex trading order types to choose from, and each order has it's advantages and disadvantages, which we will describe in later pages.

Market Orders

Market orders are the most basic Forex trading orders that are bought and sold for the current market price. With market orders, the transaction is done regardless of the price. The Forex trading software gives you real time prices, so you can decide exactly when to execute a market order with ease. Market orders are perfect for situations where you follow a certain currency up close. The minute you want to enter a position you can buy and sell the currency at a click of a button using Forex trading market order.

The main thing to remember about market orders is that they are executed for the current market price, and that this is beneficial if you want to instantly enter a position.

The process of placing Forex trading orders is like so:

·                      First you specify the currency pair and the size of the deal. Let's say the EUR/USD pair quoted 1.2603/06, for 2 lots of $100 each.

·                      Next you choose to either sell each EUR for 1.2603 USD (bid price), or choose to buy each EUR for 1.2607 USD (ask price).

·                      Finally, the transaction is confirmed by your dealer. This only takes a few seconds for Forex trading orders.

GTC (Good 'Til Canceled)

This is one of the simplest of Forex trading orders. All it means is that the order you place remains active until you cancel it.

GFD (Good For the Day)

This order is sometimes named GTM or Good 'Til Market close order, and remains active until the close of the daily Forex trading.

OCO (Order Cancel Other)

OCO stands for Order Cancel Other or Order Cancel Other, and it is a Forex trading order that is used when you place two limit orders or two stop orders. When one of the orders is executed the other is cancelled.

"If Done" Orders

This Forex trading order is executed only when the previous order is also executed. This way you can work on other currency orders and not have to worry about executing of a specific order. An "if done" order can be illustrated with the following example. Let's say you want to buy a certain currency, but also want to place a stop to make sure you do not lose much money on the trade. You then place two Forex trading orders- one for the first buying of the currency, and the other for the stop. The second order for the stop will be placed as an "if done" order, in order to make sure that the stop will be placed only when the first order is filled.

 

How to Use Forex Trading Limit and Stop Orders

In this section we will explain about the different limit order and stop orders that are available and are used for Forex trading strategies. Limit and stop orders have a similarity to support and resistance levels, as they are also usually at the far edges of the currency price graph, and are set either to reap profits or prevent losses.

Limit orders

Forex Trading Limit entry orders are executed only if the currency price touches but not breaks the price you set. Limit orders are done when traders want to set the limit price. These orders are executed only if the currency reaches the limit price you set. Limit orders are used when you want to buy and sell a currency only if it reaches a certain price or better. Let's say the currency pair EUR/USD is worth 1.245, and you buy a limit order of 1.249. This means that the transaction will be executed only if the currency price rises to 1.249.

Stop orders

A stop order is placed to accumulate profits or to prevent losses. To place a stop order, simply specify the price where you'd like to place the stop on. Stop orders are sometimes names stop loss orders, and can occur for both bid and ask transactions.

A stop loss order is a type of Forex Trading limit order that serves as a protection against a large drop in currency price. If the currency price falls beneath the price you set, it is automatically sold, thus ensuring you do not lose too much money.

Take profit orders are limit orders that are set to help investors reap currency price raises. Let's say you buy the EUR/USD for 1.245, and you want to place a stop on 1.240. This means that if, after you buy it, the currency drops to 1.240 or below, your currency will automatically be sold off, and you will prevent any further losses from occurring.

Trailing stop orders

Forex Trading Trailing stop orders are used to lock in profits. Let's say you buy GBP/USD for 1.6540, and the price rises to 1.6570, making you a profit of 30 pips. Now a new stop order is placed at 1.6560, so you lock in the previous rise. When you place a trailing stop you specify the positions of the trailing points, and the increase in the stop will be done automatically.

 

The Forex Trading Bid & Ask Prices and Spread

This page covers everything you need to know about bid and ask prices in the online Forex trading market, From the definition of Forex bid & ask prices, to the use of the bid & ask spread.

A Forex Trading Bid price is the price at which the market is prepared to buy a specific currency pair in the Forex trading market. This is the price that the trader of Forex buys his base currency in. In the quote, the Forex bid price appears to the left of the currency quote. For example, If the EUR/USD pair is 1.2342/47, then the bid price is 1.2342. Meaning you can sell the EUR for 1.2342 USD.

A Forex ask price is the price at which the market is ready to sell a certain Forex Trading currency pair in the online Forex market. This is the price that the trader buys in. It appears to the right of the Forex quote. For example, in the same EUR/USD pair of 1.2342/47, the ask price us 1.2347. This means you can buy one EUR for 1.2347 USD.

The Forex bid & ask spread represents the difference between the purchase and the sale rates. This signifies the expected profit of the online Forex Trading transaction. The value of Bid/Ask Spread is set by the liquidity of a stock. If the stock is highly liquid, it means many stock units are being bought and sold, and the Forex bid/ask spread will be lower. Traders prefer foreign currency with a lower bid/ask spread, because it means their money pair only for the currency and is not wasted on the bid/ask spread difference. A lower Forex bid/ask spread allows the trader to cut down on his losses.

How to Utilize a Forex Trading Margin Account

Online forex trading on the margin means you can buy a large sum of foreign currency with actually paying only for a fraction of the investment. This means you pay much less for the currency you buy, by leveraging your initial investment. All of the online Forex trading is done one the margin, and the next example will make it clearer.

For example, If you have $1,000 in a margin account that has a leverage ratio of 1:100, it means you can potentially buy foreign currencies worth up to $100,000, because you place the $1,000 just as a deposit for the leveraged currency.

The major advantage of using a margin trading accunt is that with margin trading you can increase your buying power and have bigger profits. This is one of the biggest advantage of the online Forex trading.

Avoiding Risks In Margin Trading

·                      With a Margin Forex trading account, you increase your losses, as well as your profits. So if a currency drops, even by one pip, you are essentially losing 100 times the drop.

·                      If you invest in a margin account, a drop in the currency can liquidate your account and also leave you owing money. This is why it is important to check and make sure you are also covered in cases of losses.

·                      Stop losses are one of the tools you can use to ensure your account doesn't drop and is not lost.

·                      Investment in the margin also needs to take into account how stable the currency is. If the online Forex trading currency is dynamic and has a high rate of fluctuations, a smaller leverage is recommended. To check if the currency is stable you can use technical analysis to examine the different options.

Every time you perform a new trade, part of the account balance in the margin account is put aside as the initial margin requirement of the trade. Before you invest, you should calculate the amount used as the margin requirement. To calculate this, multiply: the current currency price*the units traded*times the margin percent/100. If the requirement is larger do not invest in that currency.

Make sure you invest wisely and read the terms and conditions of the margin Forex trading account thoroughly before the investment.

 

How to Handle Forex Trading Losses

A smart online Forex trading investor should keep a close record of his trading losses. This is to make sure that the currency doesn’t drop, that you stay updated with its development, and that you have the option to settle your trading losses if you start to lose.

To start writing records, first acquire a notebook for the sole propose of online Forex trading record keeping. In this notebook you should write a chart with the following titles:

·                      The trading date

·                      The Beginning balance

·                      The number of trades

·                      The pairs traded

·                      The strategies used

·                      The ending balance

·                      Forex Trading losses

In the lines underneath these columns you need to write the dates in which you do your online Forex trading.

Mistakes to Avoid While Forex Trading

Always Trade with a Stop-Loss Limit Order

The most important thing for an experienced trader is to secure his investments and prevent large trading losses. The option of the stop loss will give you that protection that is vital for any investor. In Online Forex trading, the investor online is the one calling the shots, so don't be afraid of using this option to secure your account.

Always Trade with a Take-Profit Limit Order

From the same reasons previously stated, the sound investor should always set a reasonable take-profit limit order. If your currency will rise, you can advance and raise your investment without risking the money you have.

Do not Trade Too Many Pairs All At Once

It is hard to follow up with many Forex trading currencies all at once. This is because for each trade you will have at least three charts, making it hard for you to keep track of your investment. There is also a larger probability that one of your Forex trading currencies drops, something that can endanger all you investment. Focusing on a few pair will cut down, for the long run, on your trading losses

Do Not Trade Minor Forex Currency

Trading minor currencies is more risky, and there is more chance of gaining trading losses. It is not advised to trade in the minors because it fluctuates more risking you funds. This is also recommended because most online Forex trading is done for the major currencies.

Trade with a Plan

Before you start forex trading, review several charts that would give you more information about the currencies you want to trade in. This includes the 5-second, 1 hour, and 1-day charts.Technical analysis and fundamental analysis can also help your trade. When you analyze the charts, try and find out what is the long term direction of the Forex currency fluctuation.

Cut Your Trading Losses Down

Sometimes it happens that a currency you invested in drops. If you notice that trend early on you are better to cut your trading losses and not continue losing more money. This is because of sunk cost- money that you have lost is better to be left and not counted upon.

 

Trend Analysis - Recognizing Forex Trading Trends

We have already covered various Forex trading trends, but it is also important to learn Forex trading strategies for recognizing trends.

In this guide we will first teach you about what are trend lines, and then go on for an elaborate explanation of the various trend strategies:

Basic trend pattern strategy

·                      Sideways Forex trading Strategy

·                      Uptrend Forex trading Strategy

·                      Downtrend Forex trading Strategy

Reversal trend patterns

·                      Double top

·                      Double bottom

·                      Head and shoulders top/bottom

Continuation patterns

·                      Symmetrical triangles

·                      Ascending triangles

·                      Descending triangle

·                      Flag/pennant

·                      Rectangle

Gap Patterns

·                      Breakaway gap

·                      Runaway gap

·                      Exhaustion gap

·                      Island reversal gap

A Forex trading trend line is sketched by drawing a straight line above the daily highs for a downward trend and below daily lows for an upward trend. Forex trading trend lines are very fun to use, because you need to use your mental skills in order to recognize the different patterns in the right Forex trading chart. This is not an easy task, as the chart is usually filled with chaotic lines that constantly rise and drop. With the right practice though, you are able to improve your chart skills and recognize trends in no time. Attend each forex trading class that we offer, and you'll actually become a well educated investor.

 

Forex Trading Uptrend Strategy - Buying for Low Prices

So you've recognized an uptrend, what then? How can you use your knowledge in order to invest in the Forex trading currency more wisely? In this guide we will teach you the Forex trading guidelines for uptrend strategy.

It is actually not very difficult to invest using uptrend. We will make it easier for you and dissect it into segments.

Uptrend are very useful for technical analysis, because they help you know when to buy a certain currency that is on the rise.

·                      First, make sure you are certain about the occurrence of the uptrend, and remember that the steeper the uptrend is the more profits are there, but also the sooner it is expected to change direction.

·                      Next, examine the previous developments of the Forex trading trends, and especially notice the length of previous uptrends. A common phenomenon is for recurring lengths of uptrends.

·                      Do not wait for the uptrend to finish rising, and try to invest in just starting trends. Placing stop and limit orderscan help you be protected in cases of currency drops.

Using uptrend strategy is a basic in forex trading education, and the rest of the rules for uptrend will be gathered as you practice the real thing.

 

Forex Trading Downtrend Strategy - Selling at the Top

When new investors view downtrends, they often avoid placing transaction, because they do not understand that the Forex trading market can be profited from in both ways - through buying and through selling.

In order to use Forex trading downtrend strategy, first glance at the hourly chart and try to figure out what the big picture is concerning the currency. Take special notice of support and resistance levels that will be a good guide to invest within. Also glance on the 15 minute chart and compare the Forex trading downtrends of this chart with the hourly chart.

Ask yourself this - Is the current trend a Forex trading downtrend? If so, is it a substantial one? What are the odds the currency price will continue in this direction, and for how long? You do not have to have exact answers to these questions, only assumptions based on the knowledge you'll attain over time. Using this Forex trading downtrend strategy, you will eventually be able to use Forex trading for a living.

Other techniques include :

·                      Using the moving averages indicator, and comparing the current price with 60 other price examples. The current price should be lower than the moving average, and this indicator should point to a downtrend.

·                      Comparing the current price with the previous highs and lows of the currency.

·                      Noticing the levels of tops and bottoms over the last week.

If the previous information point to a Forex trading downtrend, then you should go ahead and sell the currency pair. If the results are ambiguous, stay updated and continue to keep track of changes in the currency that can point to a good timing for entry.

 

Sideways Forex Trading Trend Strategy - Waiting for a Turn

As mentioned in our Forex trading trend guide, sideways trend lines are seen as horizontal lines, that occur in between drops and rises in currency price.

Forex trading sideways trends are a good entry point for investors, because they are stable places where the currency price behaves steadily, on a relative perspective of course.

Sideways trend lines cannot continue for a long time, and it is a good advice to try and estimate where exactly the currency is going to go next. Following this Forex trading courses can help you pin point when a sideways trend is going on and invest more wisely.

A Forex trading sideways trend can nevertheless last for days and weeks. This period of time is considered congestion, and after this period of congestion there usually occurs a rapid rise or drop in the currency price. Another thing you should know is that the direction that a currency price continues after a Forex trading sideway trend is usually the original direction that presided before the sideways trend took place.

Using the right sideways trend strategy means figuring out the following direction of the trend by seeing the previous market direction history.

Sideways trends can be found inside support and resistance levels that are near each other. Inside the Forex trading trend line the currency price still fluctuates, but with rather small ups and downs. A sideways trend is said to be broken when the currency price goes outside the previous limitations of the trend line. You might like to make sure that the price goes outside the barrier of the trend line twice before being sure the sideways trend is broken.

 

Forex Trading Trend Patterns - The Double Top

A double top is a type of Forex trading reversal patterns. A double top is recognized like so:

·                      First you see a long rise in currency price.

·                      This rise is followed by a top and a small drop, and a bottom.

·                      Then another small rise appears.

·                      The double top Forex trading pattern is complete when another top is formed and the currency starts to drop again.

The last drop of the reversal pattern is a long one, and it indicates the trader to either liquidate the currency he already has, or perform a sell order for the bid price.

The quick recognition of this 'M' shaped trend pattern can help your investment, and can justify the saying 'forex trading made easy'.

Double tops usually don’t appear as perfect 'M's, but over time these trend patterns are easily recognized as the more basic Forex trading trends are.

 

Forex Trading Trend Patterns - The Double Bottom

The double bottom Forex trading trend pattern is similar to the Double top, only the other way around. Trading Forex should involve a constant search in chart for patterns similar to the double bottom, and can be recognized through the following details:

·                      You first see a long drop in currency price.

·                      This is followed by a short rise, and the first bottom.

·                      Next comes the short rise, and a top.

·                      Finally comes the second bottom, followed by a long expected rise.

The double bottom Forex trading trend pattern can be recognized easily by noticing the 'W' shape. The trader needs to initiate the buying of the ask price right when he notices the final long rise.

 

Forex Trading Trend Patterns - The Head and Shoulders Top/Bottom

Head and shoulders tops and bottoms are relatively easy to recognize Forex trading trend patterns, because they have a distinctive shape that identifies them. Nevertheless, it is still a vital part of learning forex trading, and you should still make an effort to understand it.

One way to view head and shoulders top patterns is to view them the same as double top trend patterns, with an added top between the two tops, that is higher than the other two tops.

In a similar way, the head and shoulders bottom trend pattern resembles the double bottom trend pattern, with an added low bottom in the middle.

Same as for the double top and bottom trend patterns, the head and shoulders patterns should be used for the last rise/drop, when investors should enter and place the Forex trading order.

The reason it's called head and shoulders trend patterns, if you haven't figured it out for yourself, is because the pattern resembles a human like figure, with the top tops on both sides as the shoulders, and the high top in the middle as the head.

 

Forex Trading Trend Patterns - The Ascending and Descending Triangle

These Forex trading trend patterns are similar to the symmetrical triangle figure, as they also occur after a certain Forex trading trend is followed. With these Forex trading pattern rapid rises and drops in currency price also occurs. The difference is that either the tops or the bottoms of the trend patterns stay the same.

·                      With Ascending triangles - the tops remain the same.

·                      With Descending triangles - the bottoms remain the same.

Both ascending and descending triangles are right-angled triangles, and when the tip of the triangle is formed, the currency trend continues as before the trend pattern occurred.

Try and use these and other types of triangle patterns in your Forex trading systems, and your profits are bound to increase very rapidly.

 

Forex Trading Trend Patterns - The Symmetrical Triangle

A symmetrical triangle is a Forex trading continuation pattern that occurs in the middle of an uptrend or a downtrend is already in progress. In this Forex trading tutorial we will teach you the steps needed to recognize symmetrical triangles :

·                      First, a symmetrical triangle starts with a change in the direction of currency price. If the currency followed an uptrend then the triangle will start to drop.

·                      Next, the currency rapidly changes direction, with steep rises and drops.

·                      What makes a symmetrical triangle is that the rises and drops become shorter and shorter, thus forming a sort of triangle. The currency price start with large rises and drops, and converges into a point, that is also the tip of the triangle.

·                      After the tip of the triangle is formed, the Forex trading trend that preceded the symmetrical triangle is continued. This is why it is called a Forex trading continuation pattern.

If you draw two lines on the edges of the rapid rises and drops, they will form a symmetrical triangle with the same sides, which is also names am Isosceles.

 

Forex Trading Indicators

Technical analysis is done through charts of various sorts, such as bar charts, that depict the currency price. In order to analyze these charts, Forex trading indicators are used in order to present a clearer view of the market status.

Forex trading indicators use information of the market, including open high low and close prices, in order to help traders make the right investing decisions to earn the most profits.

The most popular technical analysis indicators are :

·                      The Relative Strength Indicator

·                      Moving Averages

·                      Momentum

·                      Bollinger Bands

These Forex trading indicators are used to make fast decisions making of buying and selling, and are also used for advanced Forex trading systems.

The indicators are available on most trading software, and all calculations are done automatically. This is why for the tutorials offered on this site concerning Forex trading indicators, we have focused on teaching you the strategies and actual use of them, rather than the complicated equations. This way you are able to understand them quite easily, and still be able to use them in actual Forex trading.

With the use of the various indicators, you will be able to recognize trend patterns just on time, and be able to benefit from the full track of the trend.

 

Forex Trading Bollinger Bands

Bollinger Bands are Forex trading indicators that were first developed by John Bollinger during the 1980s. Bollinger bands enable traders to know if a currency price is high or low. The upper band is the criterion for high prices, while the lower band is for low prices. Traders can use this indicator to recognize different Forex trading patterns and it is also useful to incorporate the use of this indicator in Forex system trading.

Bollinger bands use the standard deviation measure, which is used to figure out the spread of prices around the "true price". Bollinger bands will expand and contract as the currency price pattern expands to dynamic figures or contracts to close figures.

There are five factors to notice about Forex trading Bollinger bands. These are set according to the currency prices.

·                      The middle band measures the intermediate term trends, and is usually a moving average indicator, which is used as a base for calculation of the upper and lower Bollinger bands. The moving average that is used for the middle band is the 20-period simple moving average

·                      The upper Bollinger band is calculated using the middle Bollinger band+2*20 period standard deviation.

·                      The lower Bollinger band is calculated using the middle Bollinger band-2*20 period standard deviation.

·                      Bandwidth is calculated using the following formula, measuring the width of the bands: Bandwidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band.

·                      %b is a measure of the last price in relation to the bands. %b = (Last price- Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band).

Forex trading Bollinger bands can be used for any Forex chart type, and are usually implemented in bar chart, or candlestick charts.

 

Forex Trading Relative Strength Indicator (RSI)

The relative strength indicator (RSI) shows if a currency is overbought or oversold.

Forex trading charts display the currency price that can be rising - with an uptrend, or falling - with a downtrend. If the currency price is on the rise it means the currency is overbought, because more and more traders buy the currency and raise its worth. If the currency price is dropping, then the currency is oversold.

Knowing if a currency price is overbought or oversold is crucial in your decision making process of investment, and this is exactly what RSI is for. The RSI is a Forex trading indicator of price fluctuations over a certain period of time.

RSI = The sum of the price that rises / The sum of all price fluctuations.

For example, if we monitor the closing prices of the EUR/USDcurrency pair currently worth 1.2563, we calculate the sum of rises in relation to the total sum of fluctuation- this is the RSI.

·                      If the RSI is 30%-70% - it is considered neutral.

·                      If the RSI is 25% or lower - it is considered an oversold currency.

·                      If the RSI is over 75% - it is considered an overbought currency.

Using the Forex trading downloadable software, you are able to RSI very easily. Even though each platform has its own division, the RSI will usually be found in the tools section. In case the software doesn’t have the RSI option, you'd better switch to another site, as it is a common and very useful tool for technical analysis.

 

Forex Trading Fibonacci Ratios

Fibonacci ratios are excellent tools for Forex trading, and in this guide we will make clear what most traders find complicated.

First, let's try to understand what Fibonacci ratios are. Fibonacci numbers are named after the Italian mathematician that found them. Each Fibonacci number consists of the summation of the previous two numbers. These numbers are: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc… This way 3=2+1, 5=3+2 and so on.

Not including the first few Fibonacci numbers, the ratio of a Fibonacci number to the following one is always 0.618. For example, 89/144=0.618. The ratio between two alternate Fibonacci numbers is 0.382. These ratios are referred to as the golden mean, or divine ratio. These are one of the Fibonacci retracement levels and extension levels.

Fibonacci retracement levels are used for calculating support and resistance levels, and Fibonacci extension levels are used for calculating profit taking levels.

Almost every Forex trading software includes automatic Fibonacci retracement and extension levels calculation. In order to use Fibonacci levels in your charts, you’ll have to identify Swing High and Low points. A swing high is when a certain price is surrounded by at least two lower highs. A swing low is when the price is surrounded by at least two higher lows. Forex trading highs and lows can be viewed using either bar charts orcandlestick charts.

 

Forex Trading Momentum Analysis

Momentum analysis is a measure of the change in Forex trading trends over a certain period of time, similar to the RSI. The difference between momentum analysis and the RSI is that momentum gives you the option to analyze a specific rate variation in the time frame, while the RSI measures all of the rate changes in the time frame.

If the momentum is above 0, or it is seen as a rising curve, then an uptrend is present.

A buy signal is given when the momentum rises above 0, and a sell signal is given when the momentum drops below 0.

If the time frame is two weeks, for example, then the Momentum is calculated by decreasing the present day price to the price of the currency 14 days ago.

If you are in the process to learn forex trading online, then momentum analysis can really help you, giving you another tool to recognize market trends and invest accordingly.

 

detail of Zenzuu sign up....Make new friends & Make Money..

ZenZuu is the Next Generation Social Networking Platform for people from all walks of life...
WANT TO BUILD A CA$H FLOW FOR YOUR FUTURE?
AN INCREDIBLE OPPORTUNITY THAT IS FREE TO JOIN!
ZENZUU, A FREE ONLINE SOCIAL NETWORK
Zenzuu wants to share 80% of its Worldwide Advertising Revenue with its active members who join FOR FREE! Be the first few in this area to capitalize on this opportunity. ZenZuu is easy to do, just follow three simple steps:
Step one: Listen to the CONFERENCE CALLS
Dial 646-519-5860 then put in a special pin code 3214#
Monday through Saturday
1 pm Eastern, 3 pm Eastern, 5 pm Eastern, 7 pm Eastern, 9 pm Eastern, 11 pm Eastern
Step two: SIGN UP FREE AT
Zenzuu.com/……………………../signup.htm
Get yourself the same website like this. You can promote our own affiliate programs, company/products through this.
Step three: Tell everyone to do the same
WHY NOT promote ZenZuu now and be able to share in the Advertising Revenue. IT IS ABSOLUTELY FREE TO JOIN NO STRINGS ATTACHED!!! The bigger your team, the bigger your check...FOR THE REST OF YOUR LIFE!
Don’t miss the boat…. JOIN FREE NOW -- BE ON TOP!!! -- THINK OUTSIDE THE BOX!!!
ZENZUU IS EASY TO DO, ZENZUU CAN MAKE YOUR DREAMS COME TRUE.
The ZenZuu Worldwide Advertising Revenue Sharing Program is perfect for all the people who cannot afford to come into a costly MLM company. Learn how you can earn money by telling people to join for FREE and getting everyone they know to sign up for FREE in our "SOCIAL NETWORK" before someone else tells them about it. 80% of advertising dollars will be paid out to all FREE active members. Let’s bring millions of people into ZenZuu! Remember it is always FREE to Join ZenZuu to be a member.
For more information, call ZenZuu Independent Marketing Representative

Zenzuu

Social Network Sites are taking in up to $100 Million dollars of Advertising/month.

WANT A PIECE OF THE SOCIAL NETWORK PIE? MAKE MONEY WITH ZENZUU, A FREE ONLINE SOCIAL NETWORK
The ZenZuu Worldwide Advertising Revenue Sharing Program is perfect for all the people who could not afford to come into a costly MLM company. Learn how you can earn money by telling people to join for FREE and getting everyone they know to sign up for FREE in our "SOCIAL NETWORK".
Zenzuu wants to share 80% of its Worldwide Advertising Revenue with its active members who join FOR FREE!
ZenZuu has used the power of two to grow its member base… ZenZuu started with the first FREE member, who told others to join for FREE, who told others to join for FREE… In a few months, ZenZuu has FREE members all over the world. Be the first few in your area to promote ZenZuu to build a residual income!
All new benefit: ZenZuu FREE social network members are able to join VIP discount travel club* Value at $5,000 for FREE! Save $$$ on your travel! What were you going to do if you didn’t know ZenZuu?
It is easy to ZenZuu… Simply follow 3 steps:You too can use the power of two to build a LIFE TIME CASH FLOW (Exp: you invite 2 who invite 2 who invite 2 who invite 2 who invite 2 who invite 2 who invite 2 who invite 2 who invite 2 who invite 2 who invite 2 who invite 2 who invite 2 who invite 2 EQUAL 32,768 FREE members… YOU CAN INVITE MORE THAN 2 … THERE IS NO LIMIT! More ZenZuu FREE members…more ad revenue…more money for us!
Money IQ Test: Do you know of anyone who could not afford FREE? Join ZenZuu NOW!
U can do it too with ZenZuu Use the power of two:
For entertainment purpose, look at this example: You refer
2 FREE members (1st level) who refer
4 FREE members (2nd level) who refer
16…32…64…128…256…512…1024…
2048…4096…8192…16,384…
32,768…65,536…131,072…262,144...
See the amazing ZenZuu Ad Revenue Sharing plan that can change your life!

Step one: Listen to the LIVE CONFERENCE CALLS Dial 646-519-5860 then put in a special pin code 3214# Monday through Saturday 1 pm, 3 pm, 5 pm, 7 pm, 9 pm, 11 pm (All Eastern Time USA)

LET’S GO GET A PIECE OF A BILLION DOLLAR OF SOCIAL NETWORK ADVERTISING REVENUE (100 million of Ad Revenue per month X 12 months = 1.2 Billion X 80% = 960 Million)

Step two: SIGN UP FREE AT Zenzuu.com/……………………./signup.htm Get yourself a FREE website. View down line members. Promote your business or meet friends.

Step three: Tell everyone to do the same Print out this flyer to promote ZenZuu, make $. Bigger team, bigger check... FOR THE REST OF YOUR LIFE!

For more information, call ZenZuu Independent Marketing Representative.

Zenzuu

Social Network Sites are taking in up to $100 Million dollars of Advertising/month.

WANT A PIECE OF THE SOCIAL NETWORK PIE? MAKE MONEY WITH ZENZUU, A FREE ONLINE SOCIAL NETWORK Zenzuu wants to share 80% of its Worldwide Advertising Revenue with its active members who join FOR FREE!

Learn how you can earn money by telling people to join for FREE and getting everyone they know to sign up for FREE in our "SOCIAL NETWORK". More ZenZuu FREE members…more ad revenue…more money for us! FOLLOW 3 STEPS TO ZENZUU…

Step one: Listen to the LIVE CONFERENCE CALLS Dial 646-519-5860 then put in a special pin code 3214# Monday through Saturday 1 pm, 3 pm, 5 pm, 7 pm, 9 pm, 11 pm (All Eastern Time USA)

Step two: SIGN UP FREE AT Zenzuu.com/……………./signup.htm Get yourself a FREE website. View down line members. Promote your business or meet friends.

Step three: Tell everyone to do the same Print out this flyer to promote ZenZuu, Big team, big check... FOR THE REST OF YOUR LIFE!

For more information, call a ZenZuu Independent Marketing Representative.

Step one: Listen to the LIVE CONFERENCE CALLS Dial 646-519-5860 then put in a special pin code 3214# Monday through Saturday 1 pm, 3 pm, 5 pm, 7 pm, 9 pm, 11 pm (All Eastern Time USA)

MODERN DANCE IN INDIA

Modern Dance in India has a relatively short history. Since the perception of 'modern' or 'contemporary' can vary from dancer to dancer, this dance form cannot be defined as easily as the classical dance styles of India. It is also not codified in a detailed manner, as are the classical styles.
Uday Shankar, who was born in the early years of the 20th century, is widely accepted as the Father of Modern Dance in India. This great dancer had a very wide vision, and he appreciated the wonderful variety and scope of expression afforded by the different classical and folk dances extant in the country.
His search for a personal expression led him to incorporate different dance styles, such as Bharata Natyam and Kathakali into his choreographic productions. He established an idyllic institution in the hills of Kumaon, where he invited teachers from different genres to train his troupe in order to groom their bodies to a state where they could produce a varied, rich and contemporary dance vocabulary. Uday Shankar was an idealist as well as a wonderful showman. He was a catalyst in the renaissance of interest in Indian arts during the 1930s and '40s, and he introduced audiences in the West to Indian dance and music through the performances of his troupe.
Some of Uday Shankar's famous works include the innovative ballet, 'Labour and Machinery' and a path breaking film, 'Kalpana,' on the theme of dance.
The institute established by Uday Shankar is now defunct, but his legacy survives in the work of his children and his many disciples, who have their own troupes and students. Today, in addition to the line established by Uday Shankar, there are other practitioners of Modern Dance in India who belong to other schools.
More recently, Dr Manjushree Chaki-Sarkar created a dance idiom which she called Nava Nrityam. With her daughter Ranjabati Sarkar and their troupe based in Calcutta she did a great deal of research and codification of the dance style and presented a large number of choreographic productions. The untimely death of Ranjabati and of her mother Manjushree Chaki-Sarkar was a tragic loss for the world of contemporary dance.
With growing interaction between dance practitioners all over the country and the world, and awareness of important contemporary issues, many classical dancers have also stepped into the realm of contemporary dance through exploration of one or many dance styles. Often martial arts such as Kalaraipayattu of Kerala and Chhau of eastern India are incorporated into dance choreography, lending greater vigour and variety to the artistic expression.

RAILWAY CONCESSION, India

Those artists who would like to avail railway concession for participating in festivals and performances may contact the cultural department or Sangeet Natak Academy in their respective states. Along with the application letter for concession you have to attach copy of the invitation letter from the organizer and five copies of artists traveling along with their names and age. Individuals or groups traveling can avail 50% concession in first class and 75% concession in second class sleeper class.

News :Talk of the Planet

When Israeli athletes arrive for the start of the 2008 Summer Olympic Games in Beijing this week, their home in the Olympic Village will be graced by a mezuzah on its doorpost.

A delegation of VIPs attended the ceremony, where Rabbi Shimon Freundlich, co-director of Chabad-Lubavitch of Beijing, helped affix the traditional case that holds a biblically-mandates scroll containing verses from the Torah.

At the ceremony, which counted Israeli Ambassador Amos Nadai, and Olympic Committee of Israel officials Zvi Varshaviak and Efraim Zinger as guests, Freundlich blessed the arriving 43 athletes with health and peace.

In related news, visiting Israeli President Shimon Peres is expected to attend the reading of the Book of Lamentations with Freundlich Saturday night as part of the observance of Tisha B’Av, the anniversary of the destruction of the Holy Temples in Jerusalem. …

Phases Of Freedom

Are we searching for freedom? Then the Torah will help us in our search. The Torah focuses on the pursuit of freedom, as we see in the story of the Jews in Egypt: how they suffered as slaves, and how they attained liberation. Then came their slow journey through the desert, eventually reaching the Promised Land.

All this did not take place in one single step. Freedom has many stages, and the journey through the desert was itself part of the process. When they left Egypt they were not yet ready for the highest levels of freedom. Forty years later they were.

The closing Parshah in the Book of Numbers is called Masei, meaning "Journeys." It begins with a list of the forty-two stopping places where the Jews camped during their years of traveling through the desert. Yet the Torah does not call them halting places, camp sites or anything similar, as would suit the name of a region where, for a while, the Jews stopped moving. Instead it calls them "journeys", expressing the idea of leaving one place and coming to another.

A further point is the fact that the Torah text states: "These are the journeys of the Children of Israel through which they left the land of Egypt..." (Numbers 33:1). Long ago the question was asked: surely they left Egypt at the very first journey? Is the Torah implying that there was not just one, but forty-two journeys out of Egypt?

As we have noted, this is precisely what the Torah wants to teach us. Each journey was another stage in the long process of leaving Egypt.

The Torah is not just telling us something about the history of our ancestors in the remote past. It is helping us understand our own lives in the present.

We too are seeking freedom, are trying to escape from limitations. The Hebrew word for "Egypt," Mitzrayim, is very similar to the Hebrew word for limitations: meytzarim. The escape of our ancestors from Egypt thousands of years ago parallels our own attempts to transcend limitations today.

How exactly we define these limitations, our own individual "Egypt", will vary from person to person. For one it means problems of circumstance, arising from factors outside the person's direct control. For another it means the problem of inner conflict and struggle. For a third person it means the quest for spiritual freedom, transcending one's materialist, earth-bound ego.

The teaching of the Torah portion, telling us about the many "journeys" from Egypt, is that we must be prepared for many different stages in attaining our goal. The first step towards freedom becomes another, more subtle, form of limitation and slavery. When we succeed in escaping from that, and have reached the second stage of freedom - we discover that again we must strive for yet another level of liberty.

Thus it goes on, step after step. Each time we are escaping from yet another aspect of our personal Egypt. It may seem an endless task. Yet in fact every step truly brings us closer to genuine fulfillment, as an individual and as part of the Jewish people. Every step forward brings us closer to the Promised Land

"Charm is false and beauty is vanity." (Proverbs)

Human history is littered with examples of ideas that were thought beautiful in their time, and continued to have a following long after their inherent ugliness—and evil—was revealed.

Why? Because we begin from our senses, from what catches the eye or the heart—so we are prone to latch on to dazzling but misleading premises, and to remain married to them long after they have ceased to hold any promise.

The solution? We need to work from the inside out, probing essences rather than sensations, seeking order, and from that process, a glorious aesthetic emerges.

So beauty as a starting point becomes a distraction from truth, while those who seek truth are rewarded with a beauty that does not fade with time.

Truth—when it is uncovered—is beautiful, but beauty is not truth.

The History of Money

In the Beginning: Barter
Barter is the exchange of resources or services for mutual advantage, and may date back to the beginning of humankind. Some would even argue that it's not purely a human activity; plants and animals have been bartering -- in symbiotic relationships -- for millions of years. In any case, barter among humans certainly pre-dates the use of money. Today individuals, organizations, and governments still use, and often prefer, barter as a form of exchange of goods and services.

9,000 -- 6,000 BC: Cattle
Cattle, which include anything from cows, to sheep, to camels, are the first and oldest form of money. With the advent of agriculture came the use of grain and other vegetable or plant products as a standard form of barter in many cultures.

1,200 BC: Cowrie Shells
The first use of cowries, the shell of a mollusc that was widely available in the shallow waters of the Pacific and Indian Oceans, was in China. Historically, many societies have used cowries as money, and even as recently as the middle of this century, cowries have been used in some parts of Africa. The cowrie is the most widely and longest used currency in history.

1,000 BC: First Metal Money and Coins
Bronze and Copper cowrie imitations were manufactured by China at the end of the Stone Age and could be considered some of the earliest forms of metal coins. Metal tool money, such as knife and spade monies, was also first used in China. These early metal monies developed into primitive versions of round coins. Chinese coins were made out of base metals, often containing holes so they could be put together like a chain.

500 BC: Modern Coinage
Outside of China, the first coins developed out of lumps of silver. They soon took the familar round form of today, and were stamped with various gods and emperors to mark their authenticity. These early coins first appeared in Lydia, which is part of present-day Turkey, but the techniques were quickly copied and further re