Author Archive
Use Pivot Points Using Pivot Points What Are Pivot Points? Pivot Point Trading
The power of pivot points is based on the fact that they work in all markets that have established ranges. Pivot points are leading indicators unlike most of the other indicators that are lagging.
Oil & Currency Trading
Wall Street analysts watch oil prices like hawks. During the early part of 2008, oil prices skyrocketed from near $75 to almost $140 within a few short months. This was more than a 100% increase in oil prices in a few months. All over the world, countries started feeling huge pressures on their balance of payment accounts. Many hedge fund managers heavily speculated on the increase in oil price. Some made a windfall, other lost when the oil prices suddenly collapsed.
Learn to Use Fibonacci Retracements
Investors use Fibonacci ratios to project future levels of support and resistance based on previous price moves in the forex markets. In other words, previous price moves in the currency market determine where the Fibonacci levels will be placed.
Learn to Identify Breaking Support & Resistance
Support and resistance levels are used by investors to determine how far they believe a currency pair will move. This also tells them at what points the price action may turn around and start moving in the opposite direction.
How To Choose The Best Currency Pair For Trading?
The choice of the right currency pair in forex trading is very important. Many traders make the mistake of shaping opinion around only one currency, ignoring the other currency in the pair.
Trading Price Action
Do you want to become a successful trader? If yes, than you should immerse yourself completely in the subject of forex trading in order to find your edge. If you are already a winning forex trader than you should try to understand exactly what your edge is.
Fundamental Trading Strategy Based on Interest Rate Differentials
As a forex trader, you should be aware of the role played by the interest rate changes in the general economic and investment climate. You should know that interest rates are an essential part of investment decisions and can drive currency markets as well as the stock and commodities markets in either direction. After the unemployment figures, Federal Open Market Committee (FOMC) rate decisions are the second largest currency market moving release.
Using Commodity Prices as Leading Indicators
Commodities, namely gold and oil, have a substantial connection with the forex markets. Understanding the relationship between gold, oil and currencies can help forex traders gauge risk, forecast price changes as well as understand exposure.
