As a result, there are three active and in the afternoon overlaps with main forex trading sessions you should the opening of the New York or American be aware of; the Tokyo or Asian session, session, so there can be good opportuni- the London or Eurpoean session and fi- ties to trade forex and make a profit. Seasoned traders considered 10am EST The busiest times are when these ses- to be the best time to trade forex markets sions overlap, for example, in the early as during this time, traders in London and hours of the morning in London, the trad- Europe are preparing to close their positions ing session in Tokyo is just winding down.

As the focus desks and analyse and digest information shifts from Europe to the US, this often cre- from the Asian trading session, so early ates big swings in currency prices, opening 6am GMT is a great time to make trades up opportunities to profit. These days generally show the biggest movements in currencies as major data releases relat- ed to the economy are usually released on these days.

Fridays are busy as well, but only until 12am. During the second half of Friday, movements can often be unpredictable since major banks, hedge funds and financial institutions will close some of their positions for safety reasons over the weekend. Also, novice traders should be very careful with the Asion sessions. Let's look at the three most popular types of forex charts: line chart, bar chart, and candlestick chart. It is created by simply connecting the data points depicting the closing prices of certain periods with a line.

Therefore, they can track its closing prices accurately. These charts are similar to bar charts only that they present the price information in an aesthetically pleasing graphic format.

Buying options

It also con- centrates more on the opening and closing prices of the trading period. Even if you don't have time to stare at charts all day long, you can spot great trading opportu- nities by simply viewing the news and economic calendar on a daily basis. In other words, by performing fundamental analysis.

Basically, all fundamentals are indicators of where investors intend to put their money and which currencies will be influenced as a result. All the drivers are divided in 4 major categories: central banks, state economics, political stabili- ty and natural disasters. This was a great opportunity to make money shorting betting that it would decline the British Pound. Therefore, employment data ed, where a lower rate of inflation translates releases have a substantial effect on ex- to an improvement in purchasing power. Some other Conversely, a low and stable inflation rate important data releases are the unemploy- encourages investment, increases the pur- ment rate, participation rate and other labour chasing power of consumers and business- market statistics, all of which have a moder- es can plan for the future more easily.

Share now 3 Trade balance 4 Quantitative easing Trade with other countries is a major part Quantitative easing is an unconventional of most economies and therefore the trade monetary policy tool that is used to expand a balance can affect the value of a currency. However, if an economy in- a higher money supply should translate into creases its imports over time, this in- higher inflation and lower purchasing pow- creases the selling pressure on that er.

Also, the timing of their quantitative easing The trade balance is simply the ratio of programs has differed. You could have sold EUR-USD over the However, if imports are higher than exports, long term to take advantage of this devel- then the country has a trade deficit - in- opment.

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Also, the US Federal Reserve has recently indicated that further quantitative easing As with other indicators, trade balance may be necessary. If this materializes, then data is usually released monthly and has it would be a good time to short a currency a moderate effect on exchange rates. A pair such as USD-ZAR or USD-MYR, since better than anticipated trade balance could South Africa and Malaysia are two fast-grow- be viewed positively for the currency and ing economies that have not needed to result in appreciation whereas a worse than implement quantitative easing.

Share now 5 Country politics 6 Interest rates The political situation of a country can have a Interest rates are the most important tool significant effect on its economy. A new presi- central banks have and they are used to in- dent or prime minister might make radical fluence lending and savings and borrowing or changes to the economy. If people do er to borrow money for that new car or house not feel like their money is safe in a coun- someone has always wanted. For instance, China has a one hundred are 2 percent while in Germany they are 5 year plan in place as it is a communist state, percent.

People with savings in the bank whereas many Western countries change would move their money into German their leaders every four or five years. Therefore, changes in the interest effect on the economy, as problems from rate are high impact events for exchange the last administration are addressed but a rates. The support refers to the level where the price rarely falls below before turning around, and the number of buyers exceeds that of sellers hence causing the price to rise.

On the other hand, the resistance is the level where price rarely exceeds, and the number of sellers exceeds that of buys hence lowering the price down. In both cases, the price stops and turns around. You may remember that Pinnochio's nose grew long when he was lying. The same happens with this strategy: when the wick is longer than the body, this tells us that the market is deceiving us and that we should trade the opposite way.

A long wich indicated strong selling pressure; a long tail suggest intense buying power. The trade is planned on a 5-minute chart and is signaled when two bearish candles form fol- lowing a test of resistance. How to protfit? Choose an asset and watch the market until you see the first red bar. Then wait for a second red bar. If the second red bar closes lower than the first red bar, then it's a jackpot.

Usually, what happens is that the third bar will go even lower than the second bar. This is the point where you should open a short position. If you are skilled in charting currencies, also known as technical analysis, then you are able to frequently predict the future movement of a currency pair or the development of price action with accuracy.

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One of the things traders look for is the trend of an asset, where it can be trending upwards, downwards or sideways. An upward trend is when the currency pair is increasing and is characterised by higher highs and higher lows. A currency in an upward trend will display a peak, then falling to a low and dis- playing a trough, then go on to establish a higher peak and fall to a higher low, and so on. By tim- ing your trade to buy after a peak and when the currency is establishing a new low that is higher than the previous one, you can profit from the uptrend.

A downward trend is when the currency pair is decreasing and is characterised by lower highs and lower lows. A currency in a downward trend will make a low and display a trough, rise to a high, then go on to establish a lower low and rise to a lower low, and so on. By timing your trade to sell after a high and when the currency is establishing a new high that is low- er than the previous one, you can profit from the downtrend. Peaks and troughs still occur but there is no discernible pattern such as higher highs, higher lows or lower highs and lower lows.

If you are new to forex, it is best to avoid hori- zontal trends altogether as it is uncertain which direction the currency will eventually break out. By trading with the trend, you are going with the flow of the market and allowing the market to work for you. So when analysing a currency pair, look for higher highs and higher lows to find an uptrend. Look for where the next higher low could be and buy in this region. Alternatively, to find a downtrend, look for lower highs and lower lows. Look for where the next lower high might be and sell in this region. For a more detailed and complex view of a curren- cy, you can analyse these various timeframes, with one popular combination being the weekly and daily charts.

The weekly chart could be used to identify the trend, while the daily chart can be used to look for an entry into a trade and the planned price at which you will lock in your profits and exit the trade. While the different timeframes can sometimes suggest conflicting things, you will often be able to combine the readings from them to form a detailed overview of the state of the market. If the closing price is higher than the opening price, then the block in the middle is white hollow or unfilled.

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It all starts with a brilliant strategy… But how to build your own winning formula? Creating strategies can be challenging for beginners. First thing to learn is how to obtain fundamental technical analysis.

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Creating your strategy by trial and error comes with a price. Make sure you have all you need to start. Charts are indispensable tools for trading financial markets. As a Forex trader, you can never have enough information about them. In this book, you will learn about a powerful technical indicator called Moving Averages. There are two popular types: simple and exponential. Pivots are fundamental points that represent the average price of the opening, high, low and closing prices in a certain time frame. Pivots are mostly used by traders to calculate alternative support and resistance levels similar to trend-line analysis.

Being able to tell the exact moment when the market will shift direction is a priceless skill. Traders usually look for signs or patterns on trading charts in order to forecast when such a reversal might occur. There are major signs or patterns that might provide such an insight and this e-book discusses them. The best way to keep track of your accounts. Get notifications and access your dashboard any time!

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