A Forex Currency Cross Pair is one of the newest additions to the Forex Trading market. In the past you could not make a trade unless it involved the U.S. Dollar. This means that if you wanted to trade between two currencies you would first need to convert both of the currencies into U.S. Dollars. The trade would be made and then it would be converted back into the currency that you wanted, which to be honest is a pretty long winded process. However, with a Forex Currency Cross Pair, times have changed and now there are more options to trade nowadays. Let’s take a little look.
Triangle chart patterns are important tools used in Forex trading. These trend lines are created when the lows and the highs of the candlesticks form triangle shapes on the forex charts. Continue reading to learn more about Forex Triangles.
In forex, the triangle patterns are often divided in three categories, the symmetrical, ascending and descending. The triangle shape is significant, but the path that the market takes after breaking from the triangle is even more important. While the triangles are reversal patterns at times, they are usually seen as continuance patterns.
If you are into forex trading, you might have heard about Bollinger Bands. These are regarded as the best indicators for forex because traders can use them to determine the volatility in price actions. They can work with any kind of security and in nearly all the markets.
Bollinger Bands or BBs are easy to use, free and extremely reliable. When using this tool, you can know when the market prices have hit the extreme or near to the exploding point as well as whether the market is stuck or trending in a particular range. This tool is basically plotting the normal deviation below and above the simple moving average. In Forex, you can use a simple moving average to smooth out a price action.
When trading in the forex market, investors have to choose two currency pairs to work upon. And the currency that is most commonly paired with other the currencies is the US dollar. By definition, the US dollar index is the measure of the value of the US dollar against most of its currency partners.
The US dollar index is actually composed of six other currencies. These are the Euros, Japanese Yen, British Pounds, Canadian Dollars, Swedish Krona, and Swiss Francs. There are only six currencies that affect the US dollar index but there are a total of 22 countries that are in play. This is because the value of the Euros is directly affected by its 17 member states. In essence, any changes in the market of any of the European Union member nations affect the overall performance of the Euros currency.
When a certain news item comes out, the market tends to shift. Trading forex news is one easy way to make money. The news influences the way that the market moves. And predicting how the market would move in response to that particular news becomes your job. The news that you should focus are the ones that directly affects the two currencies that youâ€™re dealing with. Be sure that you always watch the news at that critical time when the press releases first hit the media. US market news is usually released from 8:30 to 10:00am. If youâ€™re dealing with the Yen as currency its partner, be sure to watch the Japanese evening news normally delivered at 6:50 to 11:30pm.
There are lots of people who think that the secret for a successful trading is knowing when the market is going to behave. Of course, this is true but this is not solely the thing you need in order to succeed in Forex trading. It is also important that you know how to limit your possible losses with the use of stop loss.
Basically, there are lots of people out there that have reiterated the importance of stop loss. These people are usually the most experienced traders in the market. One of which is Larry Hite who is a veteran fund manager. He stated that “If you do not manage the risk, eventually they will carry you out.” This means that no matter what amount of money you want to trade, if you have exposed yourself to serious risks, there are some points in time that you might fail. This is backed by the recent financial crisis in some parts of the world.
When speaking of automated forex trading robots, these are usually those software options that you can use in order to watch Forex 24 hours. These robots are capable of receiving different market feeds and performing technical analysis in order to know the exact condition of the forex trading market. Aside from that, automated forex robots are also capable of detecting different parameters like the volatility, trend analysis, price action and other aspects that can affect your entire investment in the future.
374 pips for this week. Trading currency: EUR/USD, USD/JPY, AUD/USD.
Trading currency: EUR/USD, AUD/USD, GBP/USD. Loss more than 400+ pips, almost all pips got for the last 2 months. Very bad. So money management is very important for forex market.
Trading for EUR/USD, AUD/USD. Total pips: -5 pips.