There are many methods used by forex traders to predict the movements of currency pairs. Fundamental traders may read news sources to see how interest rates, economic growth, employment, inflation, and political risk affect the supply and demand for currencies. Technical traders use charting tools and indicators to identify trends and important price points of where to enter and exit the market. A forex chart is used by traders to conduct a technical analysis, which helps them to make better trading decisions. Forex charts contain real time...
Price action is a form of technical analysis that focuses solely on past prices that have traded in the market. As a trader, you will never truly know what will happen in the future. Any indicator or indication of what may happen in the future is just a possibility. And even then, it could be a remote possibility at best because that indicator you are using - well, it’s really just a fancy way of looking at previous price action. Price action is simply another term for the movement of a security. And price action trading is a trading strategy...
Here are the key factors to keep in mind today for US Dollar trades: US Personal Income and Personal Spending: Personal income is expected to increase by 0.2% in September and personal spending is expected to increase by 0.2%. Forex traders can compare this to August where personal income rose 0.3% and personal spending rose by 0.4%. US NAPM Milwaukee: The NAPM Milwaukee for October is expected at 44.00. Forex traders can compare this to the NAPM Milwaukee for September which was at 39.44. US Chicago Purchasing Manager Index: The Chicago...
Fundamental analysis is a method of forecasting the future price movements of a currency pair, based on economic, political, environmental and other relevant factors and statistics. In practice, many market players use technical analysis in conjunction with fundamental analysis to determine their trading strategy. One major advantage of technical analysis is that experienced analysts can follow many markets and market instruments, whereas the fundamental analyst needs to know a particular market intimately. Forex fundamental analysis focuses...
The Forex Market is the biggest market with average daily turn-over that runs into billions. It is even bigger than the US stock markets. However, no one can really give the correct numbers as to the forex turnover. But nonetheless, forex is indeed a big market and thus allows many market participants. From your neighborhood bank to specialized investment companies, to your friend; the forex markets always offers a piece of the action whoever you are and wherever you are (even from your home). As with any new venture, forex trading requires a...
