Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves (3rd Edition)
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Play the forex markets to win with this invaluable guide to strategy and analysis
Day Trading and Swing Trading the Currency Market gives forex traders the strategies and skills they need to approach this highly competitive arena on an equal footing with major institutions. Now in it's third edition, this invaluable guide provides the latest statistics, data, and analysis of recent events, giving you the most up-to-date picture of the state of the fast-moving foreign exchange markets. You'll learn how the interbank currency markets work, and how to borrow strategy from the biggest players to profit from trends. Clear and comprehensive, this book describes the technical and fundamental strategies that allow individual traders to compete with bank traders, and gives you comprehensive explanations of strategies involving intermarket relationships, interest rate differentials, option volatilities, news events, and more. The companion website gives you access to video seminars on how to be a better trader, providing another leg up in this competitive market.
The multi-billion-dollar foreign exchange market is the most actively traded market in the world. With online trading platforms now offering retail traders direct access to the interbank foreign exchange market, there's never been a better time for individuals to learn the ropes of this somewhat secretive area. This book is your complete guide to forex trading, equipping you to play with the big guys and win—on your own terms.
• Understand how the foreign currency markets work, and the forces that move them
• Analyze the market to profit from short-term swings using time-tested strategies
• Learn a variety of technical trades for navigating overbought or oversold markets
• Examine the unique characteristics of various currency pairs
Many of the world's most successful traders have made the bulk of their winnings in the currency market, and now it's your turn. Day Trading and Swing Trading the Currency Market is the must-have guide for all foreign exchange traders.
At its most fundamental level, the foreign exchange market is an over-the-counter (OTC) market with no central exchange and clearing house where orders are matched. FX dealers and market makers around the world are linked to each other around-the-clock via telephone, computer, and fax, creating one cohesive market. Through the years, this has changed with many institutions offering exchange traded FX instruments, but all of the prices are still derived from the underlying or spot forex market. In the past two decades, foreign exchange, also known as forex or FX, became available to trade by individual retail investors, and this access caused the market to explode in popularity.
0708. We see that the low is broken first, and when that happens we place an order to buy 5 pips above the previous days high at 1. 0806. As shown in Figure 13. 4, the order is triggered about 7 hours later. At the time, we place our stop at 1. 0786 and a first target of 1. 0826. The first target is reached shortly after, and the stop on the rest of the position is moved to breakeven, or 1. 0806. In this example, if we trail the stop on the position using a two-bar low, the second half of the trade is closed at 1.
2 Currency Checklist Figure 7. 3 Trend/Range Trading Rules Figure 7. 4 USDJPY Bollinger Band Chart Figure 7. 5 Risk Reversals Chapter 8: Technical Trading Strategy: Multiple Time Frame Analysis Figure 8. 1 USDJPY Monthly Chart Figure 8. 2 USDJPY 15-Minute Chart Figure 8. 3 USDCAD Weekly Chart Figure 8. 4 USDCAD Hourly Chart Figure 8. 5 CHFJPY Hourly Chart Figure 8. 6 CHFJPY Daily Chart Figure 8. 7 CHFJPY 15-Minute Chart Chapter 9: Technical Strategy: Trading with Double Bollinger Bands Figure 9. 1 EURUSD Bollinger Band Daily Chart Figure 9.
Figure 3. 3 EURUSD Chart Source: eSignal Although these charts will rarely offer such clear-cut signals, their analytical value may also lie in spotting and interpreting the outlier data. Large positive and negative surprises in economic data can often yield clues to future price action. If you go back and look at the EURUSD charts, you will see that the record current account deficits in October 2004 were the catalyst that sent the dollar plunging over the next two months. In many ways, economic fundamentals matter more in the foreign exchange market than in any other market, and charts such as these could provide valuable clues to price direction.
This was known as Abenomics. In the first few weeks of the program, Abe announced a massive stimulus package that involved significant government spending and a strong dose of quantitative easing. The effects were almost immediate, with the Japanese yen falling significantly across the board. Not soon after, the unemployment rate started to fall and growth slowly returned. Monetary and Fiscal Policy Makers Monetary policy in Japan is determined by the Bank of Japan (BoJ). In 1998, the Japanese government passed laws giving the BoJ operational independence from the Ministry of Finance (MoF) and complete control over monetary policy.