0Posted by Michael Glass on July 16, 2012 at 4:09 pm
Understanding Forex
What is a Pip
The Foreign Exchange Market (Forex) is market where currencies are actively bought and sold by banks, funds and investors. The Forex Market facilitates the conversion of one currency for another. It is the relative value of the base currency vs the value of the quote currency. The major currencies of the world are:
* US Dollar
* Austrailian Dollar
* British Pound
* Canadian Dollar
* Japanese Yen
* Swiss Franc
These are the most liquid currencies in the world. The US dollar is involed in 90% of Forex Transactions. Currencies fluctuate in fractions of a dollar called a Pip (Price Interest Point) A Pip is the last decimal of a quote
0Posted by Michael Glass on November 4, 2011 at 6:55 pm
The Ideal Trading Time
for Major Forex
Currency Pairs
According to most professional traders, there are three time windows that are most ideal for trading the Forex market. These times correspond with the times that the different financial markets are opening and overlapping. Here are the general times listed:
Asian Session, which corresponds with the city of Tokyo, Japan: 19:00 PM – 04:00 AM & 00:00 AM – 09:00 AM. (Sydney, Australia also corresponds with these times, another of the major financial centers of the world.)
European Session, which corresponds with the city of London, England: 02:00 AM – 12:00 PM& 07:00 AM – 17:00 PM.
North American Session, which corresponds with the city of New York, New York, United States: 08:00 AM – 16:00 PM & 13:00 PM – 21:00 PM.
Because there are these three major financial markets opening each day at different times, the level of financial activity rises and falls based on the volumes traded during the openings and closings of each center (the openings and closings are the two most active trading times in each market). Because there is so much activity at any given time throughout the world, the Foreign Exchange Market is known as a 24 hour market and trades may be executed at any time beginning at 5pm EST (New York Time) on Sunday Evening, and going through to 5pm EST Friday Evening for the end of the trading week.
It is important to note these times as a day trader because these hours will help give insight into the busiest and most active times when the greatest volume of trading is being carried out. These times, and their increased volumes, will create greater liquidity in the corresponding major pair that is being traded. Knowing this you can anticipate when the typical best times of the day will be for the type of major pair that you are trading.
It is always recommended to bear these market overlaps in mind. You will notice, as you are trading actively, that there are certain times of the day where each currency pair is more active (more volatile) and the price-action jumps about more. This is due to the increased amount of trading going on during these market overlaps and should be planned into your trading schedule for best results.
0Posted by Michael Glass on October 30, 2011 at 9:46 am
Weekend Forex
Technical Analysis
Trading Plan
Here is our Weekend Forex Technical Analysis Trading Plan to help day traders to learn how to trade Forex Currency Pairs by identifying high probability trading setups. In this video, we discuss key technical analysis price levels for USD/CHF EUR/USD GBP/USD and Gold. We look at each forex pair on multiple time frames to identify key support and resistance price levels. We also look at price levels to setup on various pairs based upon the current trend.
0Posted by Michael Glass on October 9, 2011 at 11:53 am
How Can News Events
Affect Forex Trading
News events can have dramatic effects on forex currency pairs. Take, for example, a breaking news story that one of the countries that is traded in the Forex market goes to war with another, this is going to create ripples all throughout the financial markets, including the foreign currency markets and all the corresponding currencies values.
There are two major schools of Forex traders: Technical traders and fundamental traders. Let us look at the differences between the two schools of thought about how to approach Forex trading when trying to speculate on the direction a currency pair will move in.
Technical Traders
Technical traders tend to believe that whatever is going on with the charts for a currency pair has already taken into account all of the other factors that are going on, and that the price inherently will reflect the environment as it is.
Fundamental Traders
Fundamental traders are the ones who would be more interest in the breaking news events of the day—believing that if they can spot a news story as it is happening they can anticipate the direction a currency pair will take and thus be in a prime position to be able to trade based on their educated guess. And that’s just what all trading is—not having a magic ball, but rather making an educated and informed decision about when to place a trade. Not all will win, but hopefully they will all add up to be profitable.
The two schools of thought are very different, though some traders believe in a Forex trading methodology that is based on a combination of the two, sometimes weighted in one direction or another. News events can have profound effects on the currencies that underlie them and so there is a strong care for the fundamental trader’s approach to price-move anticipation. In most trader’s minds it is a good idea to keep both schools of thought in mind when preparing to trade. However, Forex trading systems exist that rely solely on one or the other, and they both work. Make sure to find the one that works best for you.
0Posted by Michael Glass on October 2, 2011 at 11:17 am
Weekend Forex
Technical Analysis
Trading Plan
Here is our Weekend Forex Technical Analysis Trading Plan to help day traders to learn how to trade Forex Currency Pairs by identifying high probability trading setups. In this video, we discuss key technical analysis price levels for USD/CHF EUR/USD GBP/USD and Gold. We look at each forex pair on multiple time frames to identify key support and resistance price levels. We also look at price levels to setup on various pairs based upon the current trend.
0Posted by Michael Glass on September 25, 2011 at 8:37 am
Weekend Forex
Technical Analysis
Trading Plan
Here is our Weekend Forex Technical Analysis Trading Plan to help day traders to learn how to trade Forex Currency Pairs by identifying high probability trading setups. In this video, we discuss key technical analysis price levels for USD/CHF EUR/USD GBP/USD and Gold. We look at each forex pair on multiple time frames to identify key support and resistance price levels. We also look at price levels to setup on various pairs based upon the current trend.
0Posted by Michael Glass on September 11, 2011 at 12:36 pm
Weekend Forex
Technical Analysis
Trading Plan
Here is our Weekend Forex Technical Analysis Trading Plan to help day traders to learn how to trade Forex Currency Pairs by identifying high probability trading setups. In this video, we discuss key technical analysis price levels for USD/CHF EUR/USD GBP/USD and Gold. We look at each forex pair on multiple time frames to identify key support and resistance price levels. We also look at price levels to setup on various pairs based upon the current trend.
0Posted by Michael Glass on July 24, 2011 at 5:50 pm
Weekend Forex
Technical Analysis
Trading Plan
Here is our Weekend Forex Technical Analysis Trading Plan to help day traders to learn how to trade Forex Currency Pairs by identifying high probability trading setups. In this video, we discuss key technical analysis price levels for several Forex currency pairs. We look at each forex pair on multiple time frames to identify key support and resistance price levels. We also look at price levels to setup on various pairs based upon the current trend.
0Posted by Michael Glass on July 10, 2011 at 12:48 pm
Weekend Forex
Technical Analysis
Trading Plan
Here is our Weekend Forex Technical Analysis Trading Plan to help day traders to learn how to trade Forex Currency Pairs by identifying high probability trading setups. In this video, we discuss key technical analysis price levels for several Forex currency pairs. We look at each forex pair on multiple time frames to identify key support and resistance price levels. We also look at price levels to setup on various pairs based upon the current trend.
