Technical Analysis for Forex Explained: Master The Techniques That Have Helped Forex Traders To Profits

INTRODUCTION

Congratulations on your personal copy of Technical Analysis for Forex Explained. This book will ensure that you are equipped to begin using technical analysis for forex trading and execute the strategies that go along with it. We will also examine several technical analysis indicators that can increase your profit making ability.

The book is primarily about technical analysis, however technical analysis does not operate in a vacuum, there are several other factors at play when you are trading. We begin with a brief review of the forex market since this book is technical analysis for forex (if you know everything there is to know about forex you can skip the first few pages and go direct to the technical analysis section).

The final chapters explore strategic trading tactics that you can begin using immediately, along with a section on making the transition from demo to live trading. The transition section has proven itself to be beneficial to traders of all types, from newbies to the more experienced who have been trading for some time. For those in a hurry, the Technical Analysis Quick Trade Guide, also in the later chapters, can have you trading almost right away. Many of the quick trade techniques have been used by my past students to win the Nordic Trading Competition in Europe.

There are plenty of books on the market, thanks for choosing this one.

CHAPTER 1

Foreign Exchange

What is forex? Or as many people call it FX, it is the world’s most liquid market with a daily turnover of over 4 trillion US. Now if this number is 4.4 trillion or 4.5 trillion it is not so important to get caught up on that, the point to get is that a lot of people are trading forex. This is by far the most liquid market in the world, there is no close second. For example, a day of foreign exchange is roughly 2 to 3 months of trading volume on the New York Stock Exchange (NYSE).

It is OTC traded, indicating that there is no central exchange. This term OTC means over-the-counter, which implies that the parameters, the rules of how you trade are determined by your counterpart, there is no central body, there is no center of FX. As far as the trading, it is 24/5, from Sydney 5AM Mondays to New York 5PM on Fridays. For many people this twenty-four hour component is a plus, because in contrast to other markets, for example the equity market which