Forex – What is it? The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influence of any important for the human society event in the sphere of economy, politics and nature. Consequently current prices of foreign currencies, evaluated for instance in US dollars, fluctuate towards its higher and lower meanings.

Using these fluctuations in accordance with a known principle “buy cheaper – sell higher” traders obtain gains. Forex is different in compare to all other sectors of the world financial system thanks to his heightened sensibility to a large and continuously changing number of factors, accessibility to all individual and corporative traders, exclusively high trade turnover which
creates an ensured liquidity of traded currencies and the round – the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open. Just as on any other market the trading on Forex, along with an exclusively high potential profitability, is essentially risk - bearing one. It is possible to gain a success on it only after a certain training including a familiarization with the structure and kinds of Forex, the principles of currencies price formation, the factors affecting prices alterations and trading risks levels, sources of the information necessary to account all those factors, techniques of the analysis and prediction of the market movements as well as with the trading tools and rules.

An important role in the process of the preparation for trading Forex belongs to the demo-trading (that is to trade using a demo-account with some virtual money), which allows to testify all the theoretical knowledge and to obtain a required minimum of the trade experience not being subjected to a material damage.

A short history about the origin and development of the currency exchange market. Currency trading has a long history and can be traced back to the ancient Middle East and Middle Ages when foreign exchange started to take shape after the international merchant bankers devised bills of exchange, which were transferable third-party payments that allowed flexibility and growth in foreign exchange dealings.

The modern foreign exchange market characterized by periods of high volatility (that is a frequency and amplitude of price alteration) and relative stability formed itself in the twentieth century. By the mid-1930s London became the leading center for foreign exchange and the British pound served as the currency to trade and to keep as a reserve currency. Because in the old times foreign exchange was traded on the telex machines, or cable, the pound has generally the nickname “cable”. After the World War II, where the British economy was destroyed and the United States was the only country unscarred by war, U.S. dollar, in accordance with the Breton Woods Accord between the USA, Great Britain and France (1944) became the reserve currency for all the capitalist countries and all currencies were pegged to the American dollar (through the constitution of currency ranges maintained by central banks of relevant countries by means of interventions or currency purchases).

Contents:

1. Common knowledge about the trading on Forex

    1.1. Forex as a part of the global financial market

      A brief history about the rise and development of Forex.
      The factors that caused Foreign Exchange Volume Growth on Forex (Exchange Rate Volatility, Business Internationalization, Increasing of Traders’ Sophistication, Developments in Telecommunications, Computer and Programming Development). The role of the U.S. Federal Reserve System and central banks of other G-7 countries on Forex.

    1.2. Risks by the trading on Forex
    1.3. Forex sectors

      Spot Market
      Forward Market
      Futures Market
      Currency Options

2. Major currencies and trade systems

    2.1. Major currencies

      The U.S. Dollar
      The Euro
      The Japanese Yen
      The British Pound
      The Swiss Franc

    2.2. Trade systems on Forex

      Trading with brokers
      Direct dealing

3. Fundamental analysis by trading on Forex

    3.1 Theories of exchange rate determination

      Purchasing Power Parity
      Theory of Elasticities
      Modern monetary theories on exchange rate volatility

    3.2. Indicators for the fundamental analysis

      Economic indicators
      The Gross National Product
      The Gross Domestic Product
      Consumption Spending
      Investment Spending
      Government Spending
      Net Trading
      Industrial sector indicators
      Industrial Production
      Capacity Utilization
      Factory Orders
      Durable Goods Orders
      Business Inventories
      Construction Data
      Inflation Indicators
      Producer Price Index
      Consumer Price Index
      Gross National Product Implicit Deflator
      Gross Domestic Product Implicit Deflator
      Commodity Research Bureau’s Futures Index
      The Journal of Commerce Industrial Price
      Balance of Payments
      Merchandise Trade Balance
      The U.S. – Japan Merchandise Trade Balance
      Employment Indicators
      Employment Cost Index
      Consumer Spending Indicators
      Retail Sales
      Consumer Sentiment
      Auto Sales
      Leading Indicators
      Personal Income

    3.3. Forex dependence on financial and sociopolitical factors

      The Role of Financial Factors
      Political Crises Influence

4. Technical analysis

    4.1. The destination and fundamentals of technical analysis

      Theory of Dow
      Percent measures of prices reverse

    4.2. Charts for the technical analysis

      Kinds of prices and time units
      Kinds of charts
      Line Chart
      Bar Chart
      Candlestick Chart

    4.3. Trends, Support and Resistance lines

      Trend Line and Trade Channel
      Lines of Support and Resistance

    4.4. Trend Reversal patterns

      Head-and-Shoulders
      Inverted Head-and-Shoulders
      Double Top
      Double Bottom
      Triple Top
      Triple Bottom
      Round Top, Round Bottom, Saucer, Inverted Saucer

    4.5. Trend Continuation patterns

      Flags
      Pennants
      Triangles
      Wedges
      Rectangles

    4.6. Gaps

      Common Gaps
      Breakaway Gaps
      Runaway Gaps
      Exhaustion Gaps

    4.7. Mathematical trading methods (Technical indicators)

      Moving Averages
      Envelops
      Ballinger Bands
      Average True Range
      Median Price
      Oscillators
      Commodity Channel Index
      Directional Movement Index
      Stochastics
      Moving Average Convergence-Divergence (MACD)
      Momentum
      The Relative Strength Index (RSI)
      Rate of Change (ROC)
      Larry Williams’s %R
      Indicators combination
      Ichimoku Indicator

5. Fibonacci constants and Elliott wave theory

     

5.1. Fibonacci constants
5.2. Elliott wave theory

 

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Getting Started in Forex Trading Strategies by Michael Duane Archer

A Highly Visual Guide To Developing A Personal Forex Trading Strategy. Getting Started In Forex Trading Strategies

“A great next step to read for the beginning trader. It contains practical advice and resources on trading FOREX that only come with experience.”
-Derek Ching, President, Hawaii Forex

“We have members from over 125 countries on our Web site and plan to make Getting Started in ForexTrading Strategies a ‘must read’ for those looking to trade the FOREX market. It is good to see a book that emphasizes the importance of other elements, such as money management, which are crucial to master if one is to stay in this game. Well done!”

-Jay Meisler, cofounder, Global-View.com

Written in a straightforward and accessible style, Getting Started in Forex Trading Strategies is a highly visual guide to foreign exchange trading that introduces you to the Codex Method-a proven process that allows you to tailor a trading strategy to your own personal preferences.

Divided into four comprehensive parts, this reliable resource opens with a brief overview of traditional FOREX strategies. From here, author Michael Duane Archer outlines his own personal codex-as he guides you through the process of developing yours-and reveals how to use this approach to make, monitor, and exit a trade. Along the way, Archer reveals the best ways to implement your strategy and discusses the importance of consistently keeping trading records.

In his previous book, Getting Started in Currency Trading, Archer set a solid foundation for trading the currency market by illustrating how it operated. Now, with Getting Started in Forex Trading Strategies, Archer goes a step further by showing you how to cultivate a personal trading strategy that will allow you to succeed within this dynamic environment

 

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+ نوشته شده در 87/01/31ساعت 2:59 توسط forexiranian |