WHAT IS FOREX?
In Forex you are trading the foreign exchange market, commonly known as FX, is a global marketplace for trading of one nation currency against another such as EUR vs. USD currency.
Forex is the largest most liquid able market in the world. Trillions of dollars exchanging hands every hour of the day. Forex has no centralized location and no government authority oversees it. It's you against the banks. The forex is an electronic network of, banks, brokers, investors and individual traders. Traded through forex brokers and banks.
The forex market determines the day to day value or exchange rate of most of the worlds currencies. When travelers exchange dollars for euros at a kiosk or bank. The number of euros is based on the forex exchange rate.
Forex traders seek profit from the fluctuation of currency values.
While trading currencies are list in pairs such as USD/CAD, USA/JPY and many more. The largest trading is in London, New York, Singapore, Hong Kong and Tokyo. Click here for Forex Trading Hours.
The Forex is open 24/7 five days a week around the globe. The FX Foreign exchange market was for large companies, governments and hedge funds. Trading currencies is so easy for online traders. Traders can open an forex broker account and trade currencies. The United States is the most traded currency. Trading currency pairs that do not include the US dollars is called to as crosses.
The currencies are neither appreciating nor depreciating. There are popular sayings on wall street which you should live by as a trader. "Never go against the trend" and "The trend is your friend". Keep these phrases is mind. Below are three examples of a trending market. By looking for entries within a trending market, traders have the best chance at making a large profit on their risk. Trad- ers who continuously attempt to trade against the trend by attempting to choose the top and bottom of the market generally lose money quite rapidly.
The three market trend methodologies explained above are the core price structures and rhythm of all markets. To successfully trade the FX market you must understand the underlying movements, rhythms and how to recognise future turning points. The markets always move within the framework of an underlying market wave (pure price action) whether it be up, down or sideways.
An uptrend is considered to be in place when a market is making higher highs and higher lows. Once established, only buy positions are to be taken.
An uptrend (also known as a bull trend) is identified by a series of rallies where each rally/swing exceeds the highest point of the previous rally peak. The decline between rallies ends above the lowest point of the previous decline. A series of
successive higher highs and higher lows are shown on the next page.