The concept of price action trading embodies the analysis of basic price movement as a methodology for financial speculation, as used by many retail traders and often institutionally where algorithmic trading is not employed. Since it ignores the fundamental factors of a security and looks primarily at the security’s price history — although sometimes it considers values derived from that price history — it is a form of technical analysis. Price action trading strategies are a method of trading that uses an analysis of price...
The definition of market cycles is best understood from that given by the Foundation for the Study of Cycles (FSC) Inc. According to the FSC, a market cycle is a rhythmic fluctuation in the financial markets which tends to repeat itself over time with a great degree of regularity. When a repetitive cycle is seen to occur with definable regularity and is seen to persist over a long period of time, then it cannot be reasonably ascribed to the phenomenon of chance, but can be said to be one which has a well definable pattern. The longer such a...
One of the greatest features of the foreign exchange market is that it is open 24 hours a day. This allows investors from around the world to trade during normal business hours, after work or even in the middle of the night. However, not all times are created equal. Although there is always a market for this most liquid of asset classes, there are times when price action is consistently volatile and periods when it is muted. International currency markets are made up of banks, commercial companies, ...
Options are available for trading in almost every type of investment that trades in a market. Most investors are familiar with stock or equity options, however options are available to the retail forex currency trader as well. Many people think of the stock market when they think of options. However, the foreign exchange market also offers the opportunity to trade these unique derivatives. Currency options are one of the most common ways for corporations, individuals or financial institutions to ...
The forex market is the largest most liquid market in the world with average traded values that can be trillions of dollars per day. There is no central marketplace for currency exchange; trading is conducted over the counter. The forex market is open 24 hours a day, five days a week and currencies are traded world wide among the major financial centers of London, New York, Tokyo, Frankfurt Hong Kong, Singapore, Paris and Sydney. Forex is the larges market in the world in terms of the total cash value traded, and any...
