Tuesday, September 18, 2007
Forex Day Trading - FOMC Rate decision push to market
Forex Day Trading - FOMC Rate decision push to market
Today the FOMC meeting was scheduled and the fx market was speculating about the rate interest decision from the meeting as that will have direct impact on $$ based currency pairs.
If the interest rates go up AS PER EXPECTATION then its USD bullish and which means USD will get stronger and will cause EUR/USD, GBP/USD and other pairs to tumble.
But today the forex news on FOMC was not as per expectation and this has caused the currency pairs to move in anti-$$ direction.
The market jump was significant and my trade was open. But my trade was in favour of USD, so guess what, my trade closed by hitting -35 pips stop loss. Well thats the drawback of trading during fundamental announcement time. The market moves due to fundamental announcement, but it honors technical also. E.g. the market will move heavily and then hit the 200 EMA to retrace back.
Thats all in this message..Visit again to learn more on forex day trading.
Today the FOMC meeting was scheduled and the fx market was speculating about the rate interest decision from the meeting as that will have direct impact on $$ based currency pairs.
If the interest rates go up AS PER EXPECTATION then its USD bullish and which means USD will get stronger and will cause EUR/USD, GBP/USD and other pairs to tumble.
But today the forex news on FOMC was not as per expectation and this has caused the currency pairs to move in anti-$$ direction.
The market jump was significant and my trade was open. But my trade was in favour of USD, so guess what, my trade closed by hitting -35 pips stop loss. Well thats the drawback of trading during fundamental announcement time. The market moves due to fundamental announcement, but it honors technical also. E.g. the market will move heavily and then hit the 200 EMA to retrace back.
Thats all in this message..Visit again to learn more on forex day trading.
Labels: FOMC, forex day trading, forex ema, forex news, fundamental announcement, fx market, stop loss
Tuesday, September 04, 2007
Forex Day Trading system - The market trigger called NFP
Forex Day Trading system - The market trigger called NFP
Currently the forex market is range trading..Its not trending at all. Thats what happens when a fundamental announcement is about to come out. If the fundemental news is not big, the range bound movement may happen on the 15 min chart. However if the fundamental announcement is as big as NFP (Non farm payroll), then the range bound movemet can be seen on the hourly or even the day chart.
Thats wh the fundamental nnouncement is important. It can help in understanding why the market is trending or is range bound.
The NFP is one of the very highly observed fundamental announcements. The market moves more han 50+ pips in mere seconds. If you catch the wave correctly, you'll end up making faboulous profit. However, if the trade is not right, well, your account may see a reduction in balance.
I would not suggest you to trade the NFP announcement, UNLESS you have a solid system. Lot of people claimed to have a good NFP trdaing system, but their strategy was way too risky and was not good in terms of risk to reward.
If you have to use a system, I would recommend you to try out the one recommended by Avi Frister in his package of Forex Trading Machine. This ebook is very nice, easy to understand and yet easy to follow. Following that strategy, the amount of pips in profit are quite nice.
Now, I know you are tempted to buy it, but I would suggest you to try that out on a demo account 1st..Once you become comfortabe,you can apply the strategy on the real account.
However, if you do not have a system, I would strongly suggest you to stay away from the Nonfarm payrolls (NFP) announcements and not trade at all when this news is coming out.
Thats all in this sesion..Visit again to learn more on online forex day trading.
Currently the forex market is range trading..Its not trending at all. Thats what happens when a fundamental announcement is about to come out. If the fundemental news is not big, the range bound movement may happen on the 15 min chart. However if the fundamental announcement is as big as NFP (Non farm payroll), then the range bound movemet can be seen on the hourly or even the day chart.
Thats wh the fundamental nnouncement is important. It can help in understanding why the market is trending or is range bound.
The NFP is one of the very highly observed fundamental announcements. The market moves more han 50+ pips in mere seconds. If you catch the wave correctly, you'll end up making faboulous profit. However, if the trade is not right, well, your account may see a reduction in balance.
I would not suggest you to trade the NFP announcement, UNLESS you have a solid system. Lot of people claimed to have a good NFP trdaing system, but their strategy was way too risky and was not good in terms of risk to reward.
If you have to use a system, I would recommend you to try out the one recommended by Avi Frister in his package of Forex Trading Machine. This ebook is very nice, easy to understand and yet easy to follow. Following that strategy, the amount of pips in profit are quite nice.
Now, I know you are tempted to buy it, but I would suggest you to try that out on a demo account 1st..Once you become comfortabe,you can apply the strategy on the real account.
However, if you do not have a system, I would strongly suggest you to stay away from the Nonfarm payrolls (NFP) announcements and not trade at all when this news is coming out.
Thats all in this sesion..Visit again to learn more on online forex day trading.
Labels: avi frister, forex trading ebook, forex trading machine, fundamental announcement, fundamental news, nfp, non farm payroll
Saturday, August 25, 2007
Forex day trading - How do you decide the stop loss?
Forex day trading - How do you decide the stop loss?
The importance of a stop loss when placing a trade, is very evident. One will not want the entire account balance to come to zero which can happen if stop loss is not in place.
But how do you decide a stop loss? Should it be anything?? Are there any factors that decide the stop loss?
There absolutely are the factors -
1. Foremost is how much can you risk? That amount should not only drive your stop loss, but it should also decide the time frame you should forex trade on.
2. The indicators you use. Ideally the stop loss should be the below the indicators you use to decide entry point. For example if you use 5 ema, then your stop loss can be few pips below that ema (exponential moving average)
3. The time frame you place your forex trades at. If you use 15 min chart, the stop loss should be at least 20 pips. If 1 hr chart, then atleast 40-45 pips.
4. Fundamental news or announcements. Always make sure that there are no fundamental announcements such as NFP (Non Farm Payroll) or FOMC etc are coming out. Since they can hit your stop loss in seconds if the news are against your direction of trade.
Thats all in this message...Keep visiting to learn more on online forex trading.
The importance of a stop loss when placing a trade, is very evident. One will not want the entire account balance to come to zero which can happen if stop loss is not in place.
But how do you decide a stop loss? Should it be anything?? Are there any factors that decide the stop loss?
There absolutely are the factors -
1. Foremost is how much can you risk? That amount should not only drive your stop loss, but it should also decide the time frame you should forex trade on.
2. The indicators you use. Ideally the stop loss should be the below the indicators you use to decide entry point. For example if you use 5 ema, then your stop loss can be few pips below that ema (exponential moving average)
3. The time frame you place your forex trades at. If you use 15 min chart, the stop loss should be at least 20 pips. If 1 hr chart, then atleast 40-45 pips.
4. Fundamental news or announcements. Always make sure that there are no fundamental announcements such as NFP (Non Farm Payroll) or FOMC etc are coming out. Since they can hit your stop loss in seconds if the news are against your direction of trade.
Thats all in this message...Keep visiting to learn more on online forex trading.
Labels: entry and exit, forex day trading, forex pips, forex technical indicators, fundamental announcement, nfp, stop loss
Tuesday, May 22, 2007
The Forex Trading Blog - Some interesting facts..:-)
Here are some interesting facts on "The Forex Trading Blog" -
As I mentioned in my previous post, it took more than 5 days infact 7 days to be precise for the 1st visitor to visit this site since I started it on 13-May-06. However once it started, there is constant increase in the readership.
The most popular post that is read again and again on this site is the one in which I mentioned the ebook I recommend - Forex Trading Machine from Avi Frister and 5 EMA forex trading system by Adam Burgoyne. These 2 ebooks are truely great.
The most famous question that my readers keep asking me again and again is "Which currency pair should one trade". I recommend the USD based currency pair since the spreads are very tight.
The most common technical indicator that I guess readers are interested is EMA and people always ask me the settings for the EMA.
There are 177 RSS subscribers to my blog (2 added since my last post..:-)) ..Out of these 40% are USA based and 25% are UK based. To my surprise, 5% are indians. I was expecting less than that.
I asked in one of my posts that which fundamental announcement do people like to trade the most. The response was..Yes, NFP (Non farm payroll).. Altough its a very volatile & risky news, still it seems to be the favourite. If you are trading using that, I suggest you to use the strategy that Avi frister provides when one buys his Forex Trading Machine ebook
Thats all in today's post..I'll share some more interesting facts in my next message..Keep visiting to learn more. Infact I encourage you to add the RSS feed to your site so that you are always aware when I post about online forex trading which I do quite frequently..:-).
As I mentioned in my previous post, it took more than 5 days infact 7 days to be precise for the 1st visitor to visit this site since I started it on 13-May-06. However once it started, there is constant increase in the readership.
The most popular post that is read again and again on this site is the one in which I mentioned the ebook I recommend - Forex Trading Machine from Avi Frister and 5 EMA forex trading system by Adam Burgoyne. These 2 ebooks are truely great.
The most famous question that my readers keep asking me again and again is "Which currency pair should one trade". I recommend the USD based currency pair since the spreads are very tight.
The most common technical indicator that I guess readers are interested is EMA and people always ask me the settings for the EMA.
There are 177 RSS subscribers to my blog (2 added since my last post..:-)) ..Out of these 40% are USA based and 25% are UK based. To my surprise, 5% are indians. I was expecting less than that.
I asked in one of my posts that which fundamental announcement do people like to trade the most. The response was..Yes, NFP (Non farm payroll).. Altough its a very volatile & risky news, still it seems to be the favourite. If you are trading using that, I suggest you to use the strategy that Avi frister provides when one buys his Forex Trading Machine ebook
Thats all in today's post..I'll share some more interesting facts in my next message..Keep visiting to learn more. Infact I encourage you to add the RSS feed to your site so that you are always aware when I post about online forex trading which I do quite frequently..:-).
Labels: 5 EMA forex trading system, Adam Burgoyne, avi frister, EMA, forex trading machine, fundamental announcement, fundamental news, technical analysis
Thursday, May 03, 2007
Major currency pairs are showing the reversal pattern
Major currency pairs are showing the reversal pattern -
GBP/USD, EUR/USD, AUD/USD, USD/CHF, NZD/USD all are showing major reversal patterns after an extended run...
The GBP/USD after this extensive run where it broke above 2.0000 barrier is now heading down.. Considering that its a great time to go short or pro USD.
Use a forex trading system and identify an entry bpoint to go short.. There are quite a few popular suystems such as one by peter bain I recommend and also from Avi frister or Adam Burgoyne forex trading ebook ...
Aso,please note that tomorrow NFP (Non Farm Payrolls) are going to be declared..So watch out for this fundamental news before you place trade using technical indicators..
Thats all in this session..Visit again
Forex day trading system
GBP/USD, EUR/USD, AUD/USD, USD/CHF, NZD/USD all are showing major reversal patterns after an extended run...
The GBP/USD after this extensive run where it broke above 2.0000 barrier is now heading down.. Considering that its a great time to go short or pro USD.
Use a forex trading system and identify an entry bpoint to go short.. There are quite a few popular suystems such as one by peter bain I recommend and also from Avi frister or Adam Burgoyne forex trading ebook ...
Aso,please note that tomorrow NFP (Non Farm Payrolls) are going to be declared..So watch out for this fundamental news before you place trade using technical indicators..
Thats all in this session..Visit again
Forex day trading system
Labels: Adam Burgoyne, avi frister, EUR/USD, fundamental announcement, fundamental news, GBP/USD, nfp, non farm payroll, peter bain
Saturday, April 28, 2007
Importance of Fundamental announcements in currency trading market
Importance of Fundamental announcements in currency trading market -
Just like a space craft going to be launched requires a fire thrust to launch into air, the same way the forex trading market requires the fuel of fundamental news and announcement.
Many of the times you must have seen that market is range trading meas the currency pair price is bouncing between a support and resistance line..Though its a very profitable trading situation, still most of traders prefer to trade when forex market is in trending. This is true for swing trading and day forex trading across global.
Thats what the fundamental announcements such as NFP (Non farm Payroll), FOMC etc. do to the forex trading market..They give it a push and makes the range bound market a trending one. However, since there are not many strong strategy or ebooks available in market that I am aware of that tell you how to take advantage of these news. However, I know there are still some people that do fx trading using these declaration.
Thats all in this session..Next session visit again to learn more in online forex trading..
Just like a space craft going to be launched requires a fire thrust to launch into air, the same way the forex trading market requires the fuel of fundamental news and announcement.
Many of the times you must have seen that market is range trading meas the currency pair price is bouncing between a support and resistance line..Though its a very profitable trading situation, still most of traders prefer to trade when forex market is in trending. This is true for swing trading and day forex trading across global.
Thats what the fundamental announcements such as NFP (Non farm Payroll), FOMC etc. do to the forex trading market..They give it a push and makes the range bound market a trending one. However, since there are not many strong strategy or ebooks available in market that I am aware of that tell you how to take advantage of these news. However, I know there are still some people that do fx trading using these declaration.
Thats all in this session..Next session visit again to learn more in online forex trading..
Labels: forex day trading, forex trading ebook, fundamental announcement, fundamental news, fx trading, range trading, swing trading
Tuesday, April 10, 2007
Trading with EUR, GBP
Trading with EUR, GBP - The popular currency pairs
Ever thought which are the most popular currency pairs to trade? Yes, EUR/USD is the popular of all and generally has tightest of spreads which is 2-3 pips depending on the broker.
The next is GBP/USD - the highly volatile and has spread of 4-5 pips.
What follows is USD/CHF and USD/JPY. Generally have 4-5 pips spread.
Remember the high the volatile the currency pairr is, the more it will honour technical analysis and corresponding indicators such as EMA, fibonacci levels, MACD, RSI etc. etc.
The exception being USD/CAD and USD/JPY which I have noticed is highly fundamental announcements and news impacted. Such as Oil price drives USD/CAD very heavily.
Also, the high the volatility, the more popular the pair is and the more ebooks are written for that currency pair. For e.g. ones written by Avi Frister or by Marc Mcrae. Not only that, people develop separate strategy for day trading that forex pair and some develop swing trading strategies as well.
I have not heard any one developing startegy for EUR/GBP since it is not that volatile.
Thats all in this session.Visit again to learn more on the exciting market of currency trading.
Ever thought which are the most popular currency pairs to trade? Yes, EUR/USD is the popular of all and generally has tightest of spreads which is 2-3 pips depending on the broker.
The next is GBP/USD - the highly volatile and has spread of 4-5 pips.
What follows is USD/CHF and USD/JPY. Generally have 4-5 pips spread.
Remember the high the volatile the currency pairr is, the more it will honour technical analysis and corresponding indicators such as EMA, fibonacci levels, MACD, RSI etc. etc.
The exception being USD/CAD and USD/JPY which I have noticed is highly fundamental announcements and news impacted. Such as Oil price drives USD/CAD very heavily.
Also, the high the volatility, the more popular the pair is and the more ebooks are written for that currency pair. For e.g. ones written by Avi Frister or by Marc Mcrae. Not only that, people develop separate strategy for day trading that forex pair and some develop swing trading strategies as well.
I have not heard any one developing startegy for EUR/GBP since it is not that volatile.
Thats all in this session.Visit again to learn more on the exciting market of currency trading.
Labels: EMA, fibonacci levels, forex day trading, forex pips, forex technical indicators, fundamental announcement, fundamental news, spread, technical analysis, volatility
Monday, April 09, 2007
Forex Day Trading System : Resources for Forex Charts
Forex Day Trading System : Resources for Forex Charts
In one of my articles few days back, I mentioned the importance of reliable and realtime forex chart. Some of you have asked me few sources for them.
The best source is the chart service that your broker provides. So, for e.g. since I use the plateform offerred by FXCM, I use the chart provided by them since my buy and sell price are reflected in the charts provided by them.
Other than that, the sources are -
www.dailyfx.com - Great site with important news and links to free and paid forex charts
www.esignal.com - Paid service. However, if you are beginner in forex market, I recommend you to use free charts only.
By the way, did any one of you traded the fundamental announcement and news of NFP (Non farm payroll)?
Thats all in this session to learn day trading the currency market. Visit again to learn more about forex tips and tricks.
In one of my articles few days back, I mentioned the importance of reliable and realtime forex chart. Some of you have asked me few sources for them.
The best source is the chart service that your broker provides. So, for e.g. since I use the plateform offerred by FXCM, I use the chart provided by them since my buy and sell price are reflected in the charts provided by them.
Other than that, the sources are -
www.dailyfx.com - Great site with important news and links to free and paid forex charts
www.esignal.com - Paid service. However, if you are beginner in forex market, I recommend you to use free charts only.
By the way, did any one of you traded the fundamental announcement and news of NFP (Non farm payroll)?
Thats all in this session to learn day trading the currency market. Visit again to learn more about forex tips and tricks.
Labels: currency trading, forex broker, forex chart, forex day trading, fundamental announcement, fundamental news
Sunday, April 08, 2007
Day trading the Forex: Zing is missing from the NFP announcements
Day trading the Forex: Zing is missing from the NFP announcements
Somehow that volatility for which Non farm payrolls and related fundamental news and announcements are famous, is missing.
Yesterday's NFP was $ bullish and EUR/USD currency moved only 80 pips as against the typical movement of 100-140 pips..
Is it because the NF payroll is not being treated as important by market anymore? This definitly is shift in pattern from past 3 declaration of this fundamental announcement.
I read a column at daily fx sometime back and from that article I concluded that since most of the fundamental trading is driven by US Dollar based news. Since, the economic factors change such interest hikes, change in inflation, policy outlook etc., the importance of the announcement changes . fore.gNFP may be important today, tomorrow ISM or FOMC may become more important.
Thats why it is very impirtant to be aware of whats happenning in US economic world when you are doing forex trading.
Oh yes, about my experience with Avi Frister's strategy - I made 35 pips in that. However, I lost 25 pips with the other strategy I was trying. In all a profit of 10 pips.
If you are interested in buying the ebook by Avi yourself, here is the link - Forex Trading Machine.
It includes my affiliate link and will help me earn some commision. Thanks if you end up buying the book through this link.
Thats all in this post..Visit again to learn more on currency trading in day or swing.
Somehow that volatility for which Non farm payrolls and related fundamental news and announcements are famous, is missing.
Yesterday's NFP was $ bullish and EUR/USD currency moved only 80 pips as against the typical movement of 100-140 pips..
Is it because the NF payroll is not being treated as important by market anymore? This definitly is shift in pattern from past 3 declaration of this fundamental announcement.
I read a column at daily fx sometime back and from that article I concluded that since most of the fundamental trading is driven by US Dollar based news. Since, the economic factors change such interest hikes, change in inflation, policy outlook etc., the importance of the announcement changes . fore.gNFP may be important today, tomorrow ISM or FOMC may become more important.
Thats why it is very impirtant to be aware of whats happenning in US economic world when you are doing forex trading.
Oh yes, about my experience with Avi Frister's strategy - I made 35 pips in that. However, I lost 25 pips with the other strategy I was trying. In all a profit of 10 pips.
If you are interested in buying the ebook by Avi yourself, here is the link - Forex Trading Machine.
It includes my affiliate link and will help me earn some commision. Thanks if you end up buying the book through this link.
Thats all in this post..Visit again to learn more on currency trading in day or swing.
Labels: avi frister, currency trading, forex day trading, fundamental announcement, fundamental news, nfp, non farm payroll
Thursday, April 05, 2007
Forex Day Trading System - Its that time of month again
Forex Day Trading System - Its that time of month again
Yes, its Non farm Payroll time..or popularly known as nfp..The hottest news of monthly forex calender. As like last month, I am going to try few forex strategies that learnt from Avi Frister's popular ebook. Also, I am going to try some more startegies that I am trying to develop on my own.
For the last 2 months, I am finding that NFP is not mooving the market so much. Last 2 months, the average movement of EUR/USD is 80-90 pips, where as month prior to that it was 135 pips..
I am not sure, what is the reason for that. However, still I am going to try these strategies that I are a part of Forex Trading Machine ebook.
Also, for all of you who were asking about my trades using ebook written by Adam Burgoyne called 5 EMA forex trading system, let me tell you that it is a wonderful ebook, however, before you place the trade using it, read it very carefully. Because for the strategy to be effective, please make sure that you have not missed any details.
If you are going to place any trades for NFP tomorrow and you are not proficient in that, please try it on demo account.
Thats all in this session..
Yes, its Non farm Payroll time..or popularly known as nfp..The hottest news of monthly forex calender. As like last month, I am going to try few forex strategies that learnt from Avi Frister's popular ebook. Also, I am going to try some more startegies that I am trying to develop on my own.
For the last 2 months, I am finding that NFP is not mooving the market so much. Last 2 months, the average movement of EUR/USD is 80-90 pips, where as month prior to that it was 135 pips..
I am not sure, what is the reason for that. However, still I am going to try these strategies that I are a part of Forex Trading Machine ebook.
Also, for all of you who were asking about my trades using ebook written by Adam Burgoyne called 5 EMA forex trading system, let me tell you that it is a wonderful ebook, however, before you place the trade using it, read it very carefully. Because for the strategy to be effective, please make sure that you have not missed any details.
If you are going to place any trades for NFP tomorrow and you are not proficient in that, please try it on demo account.
Thats all in this session..
Labels: 5 EMAs Forex Trading System, Adam Burgoyne, avi frister, forex trading machine, fundamental announcement, nfp, non farm payroll
Sunday, March 11, 2007
Forex Day Trading system: My results for the last NFP announcement
Forex Day Trading system: My results for the last NFP announcement.
Few days back I mentioned in my post that I am going to trade Non Farm Payroll as a trial using Avi Frister 's system in Forex Trading Machine course..
Along with that I thought of trying another forex strategy that I came to my mind few days back..Its more of a hedging technique.
I cannot tell you the details about the strategy that "Forex trading machine" course tells or else Avi will sue me..:-)..However, I can share with you the results of my gains in the trades I placed -
I placed 3 forex trades on 3 currency pairs on my Demo Account -
a. Buy Trade on GBP/USD using Avi's forex day trading system for NFP fundamental announcement.
b. Long on EUR/USD on an entry price using my strategy
c. Long on USD/CHF on an entry price using my strategy
My target on trade b & c was 50 pips each and stop loss was 25 pips.
Here is what happenned -
a. Trade A went successfully and I acheived good amount of pips.
b. Trade b was loss of 25 pips
c. trade c was profit of 50 pips
In all, its still early to say about my startegy, however I can say that Forex trading machine is a nice course and contains good forex trading systems for day as well as swing trading..
I still would like to place few more trades using the cash cow startegy before I can say for certain..However, what ever trades I have placed have been profitable..
This week I am going to place trade on my mini trading account with real money using Avi's system..And, yes, I'll share the results with you.
For people looking for a book on startegy for currency trading, for now I'll recommend
Forex Trading Machine
Thats all in today's post on NFP which is more about my experience in this month's fundamental news.
Few days back I mentioned in my post that I am going to trade Non Farm Payroll as a trial using Avi Frister 's system in Forex Trading Machine course..
Along with that I thought of trying another forex strategy that I came to my mind few days back..Its more of a hedging technique.
I cannot tell you the details about the strategy that "Forex trading machine" course tells or else Avi will sue me..:-)..However, I can share with you the results of my gains in the trades I placed -
I placed 3 forex trades on 3 currency pairs on my Demo Account -
a. Buy Trade on GBP/USD using Avi's forex day trading system for NFP fundamental announcement.
b. Long on EUR/USD on an entry price using my strategy
c. Long on USD/CHF on an entry price using my strategy
My target on trade b & c was 50 pips each and stop loss was 25 pips.
Here is what happenned -
a. Trade A went successfully and I acheived good amount of pips.
b. Trade b was loss of 25 pips
c. trade c was profit of 50 pips
In all, its still early to say about my startegy, however I can say that Forex trading machine is a nice course and contains good forex trading systems for day as well as swing trading..
I still would like to place few more trades using the cash cow startegy before I can say for certain..However, what ever trades I have placed have been profitable..
This week I am going to place trade on my mini trading account with real money using Avi's system..And, yes, I'll share the results with you.
For people looking for a book on startegy for currency trading, for now I'll recommend
Forex Trading Machine
Thats all in today's post on NFP which is more about my experience in this month's fundamental news.
Labels: avi frister, forex day trading, Forex day trading system, forex pips, forex trading machine, fundamental announcement, nfp, non farm payroll, online forex trading
Saturday, March 10, 2007
Forex Day Trading System: the volatility when news break out
Forex Day Trading System: the volatility when news break out
People many times ask me why does the volitility increase significantly when a fundamental news announcement such as FOCM or NFP comes out?
It may seem to be simple question for some of you, but I must tell you that it is very important for those who don't know.
Volatility is driven by the number of people in the forex market to buy or sell a currency pair in day trading. So, when the news breakout, the banks or the traders realize what is the true value of the currency. So, lets say if US fed release a fundamental announcement that is favourable for USD, it would mean that people need to buy dollar and close all the positions which are not in short in dollar.
This will increase the volatility tremendously and the candlestick bars will get bigger and all the traders who do technical trading will jump in..In other words, the online forex trading market will become active..
Thants all in today's post..Like I said in many previous posts, Keep visiting to learn more in the day trading of the currency market..You can add this page to your favourites or can add subscribe to the RSS feed by adding the chicklets on your yahoo/google or technorati page..
People many times ask me why does the volitility increase significantly when a fundamental news announcement such as FOCM or NFP comes out?
It may seem to be simple question for some of you, but I must tell you that it is very important for those who don't know.
Volatility is driven by the number of people in the forex market to buy or sell a currency pair in day trading. So, when the news breakout, the banks or the traders realize what is the true value of the currency. So, lets say if US fed release a fundamental announcement that is favourable for USD, it would mean that people need to buy dollar and close all the positions which are not in short in dollar.
This will increase the volatility tremendously and the candlestick bars will get bigger and all the traders who do technical trading will jump in..In other words, the online forex trading market will become active..
Thants all in today's post..Like I said in many previous posts, Keep visiting to learn more in the day trading of the currency market..You can add this page to your favourites or can add subscribe to the RSS feed by adding the chicklets on your yahoo/google or technorati page..
Labels: Forex day trading system, forex technical indicators, fundamental announcement, fundamental news, nfp, non farm payroll, volatility
