Weekly Forex Forecast: February 26 – March 2 2018 – Forex Trading Guide

Welcome to our weekly forex market analysis call and today we are looking for at the week of February 26th to March the 2nd 2018 and just a quick disclaimer before we get started this is for educational purposes only trading is a risky business so please be careful with your money all right so now let’s dive in and we’ll we’ll start with a look at our forex factory calendar here and we are on the 26th ok so we’re starting off oh this is not the right week alright so here we go perfect so we’re starting off Monday with ECB President Draghi speaking and also there are a lot of or you know other Bank members speaking as well so basically with these ones now that the monetary policy stance is changing from central banks we just have to be mindful of the comments that come out so any comments that point words the solid state of the economy and also point out concerns about inflation may be overshooting or anything that suggests that the banks may raise rates that will be considered positive for the currency so that’s what we need to pay attention to Tuesday we have CPI numbers and then we also have German booba present Weidman speaking again this will have an impact but here Draghi speech will have a bigger impact here but we do have a fetcher Powell is testifying so this will have an impact so we saw previously we saw Bank of England they were testifying about the monetary policies which had an impact now this one fetcher Powell testifying will also have an impact on the market so basically the market will just now that they have switched the leadership role the market will be paying attention to what the forward stance would be for the fad because we have been seeing interest rate hikes are they going to continue with that or with the change of leadership things are going to change so that’s the question that everybody will be paying attention to and then core durable goods orders will also have an impact on the US dollar consumer confidence number this is an important number that we do need to pay attention to and it will generally have an impact so if it comes out positive like it’s expected then that would be positive for the US dollar same thing here ANZ business confidence number for New Zealand will have an impact on a New Zealand dollar here as well and then going into Wednesday here not a whole lot of important read data we do have GDP preliminary GDP numbers for the US which will be important and this one here Chicago PMI numbers and pending home sales numbers so these numbers will be important PMI numbers are always important because they are leading indicators that generally lead to retail sales so these numbers will be important we have crude oil inventories which will generally impact US dollar than Canadian dollar as well and private capital expenditure for Australia we have a bunch of PMI numbers coming out on Thursday out of the eurozone again these will have an impact on the euro manufacturing PMI number for British pound that will be important as well so a lot of PMI numbers coming up so that will be important and then again we have fetcher Powell testifying so expect volatility in the US dollar as a result of these speeches and more Isum manufacturing PMI numbers for the US that will be impactful okay and then on Friday a very very key speech will be from prime minister Theresa May here for a British pound here so brexit will be a concern going forward or it already is a concern so right now they’re going through the nose and British Pound has really benefited from the positive sort of the the whole scope of the negotiations right now it seems very positive so as a result of that the British Pound has benefited as well the data that has been coming out of the out of UK has been positive as well so overall British Pound has been good however anytime there are political issues like this things don’t tend to go as smoothly as you know they may appear so just keep an eye on these braixen negotiations and the comments that come out of it right now with Prime Minister Teresa Mae’s speech it will be market moving so if we hear comments about them reaching agreements the two countries reaching agreements in terms of trades and market and that kind of stuff that will be positive for for the especially the British Pound it will also be positive for the euro but overall it’s a British Pound that is getting impacted more by these negotiations so that’s what we’ll have to pay attention to however if there are any comments whether they are in Theresa May speech or otherwise about how they may not be able to reach the agreement or they may not be able to negotiate the right type of terms that will be detrimental for the British Pound so we’ll have to keep an eye on that we also have construction PMI numbers of course those will be important and we have another major thing here Bank of England governor Carney speaking so what Prime Minister Theresa May says or does in regards to brexit as the last what Bank of England governor Carney says both of these will have an impact so it looks like Friday will be a big day for the British Pound so if you are trading the British Pound on Friday just be mindful of that because we could see a lot of volatility in the pound as a result of that and then GDP numbers for Canada which will be important so overall not a ton of critical data coming out so but we do have some central bankers so central bankers have been in the focus right now and what they say does have a big impact on the market so just be mindful of that all right so that is our that’s our fundamental so now let’s take a look at what we have in terms of our charts here all right so what we have seen with the Euro it’s sideways so last week we looked at this range bound move and this week as well it’s sideways went to the high and then went back down now so I’m looking for it to come back towards the bottom of the range into one level or one 2200 level and then it could bounce off so for now I’m gonna trade this as a range my bound move so when price comes into the bottom of the rage arranged at 120 200 I’m looking for a bounce up and if it goes into the top of the range I’m looking for a bounce to the downside so one thing we do need to keep in mind would be any breakouts from the range so general behavior with the range bound market is sell at the top and buy at the bottom right however if the price let’s say comes down here and starts to do this breaks down then we are looking for a further move to the downside but we do have to wait for that breakout for now it is just going sideways there’s really no clear market direction we have gone into our high here so if you take a look at the left-hand side and we see that we are into this resistance area price had trouble here before it really sort of dropped further from this previous downtrend and now we are at that level again so at this point we are just in no-man’s land in terms of market direction for the last one to five weeks here we haven’t really broken out of this range so now we need to see is the price willing to break out of the range at some point price will break out the rain the range we just don’t know which direction it’s going to break out and as a result of that we just have to be mindful when the price gets to these these end of the boundary of the ranges of if the price comes back in to 120 200 we have to watch out for that so basically scenario will be the bounce back into the range once it comes to 120 200 and if once it goes to 125 50 level then I’m looking for a bounce back into the range but I’ll be watching out for any breakouts if it breaks out to the downside then I’m looking for next move to be into 12050 area so those that’s what I’m looking for but for now waiting for price to come in and bounce off of one 2200 so range bound for euro dollar in terms of the pound here we are also we’re also looking at sorry just a quick question can we hedge it I’m not sure what like how I would hedge it I was just wait for I would just trade the range and once we see an indication of breaking out of the range you could so you probably what you’re talking about is a straddle so if you mean can you like put a sell order at the bottom what I’d be concerned about is price spiking through it and then pulling back in I don’t typically do straddle orders because of that very reason there’s a lot of times what happens is price will break through because there are so many stops on the other side of it price will break through that level and then pull back and like this right price will punch through and go back into the range and the purpose of really that pin will be to grab all the orders sitting there and then kind of continue on into the opposite direction so that’s why I’m not a big big proponent of straddling it like that I’d rather see a break of the range and then once the price holds below the range then we can sort of kind of continue on with that so similar to here where the price was just sitting below this level and once it broke through once this candle closed you can just take trade to the downside so that’s my preference but of course there are different strategies that you can use I prefer to just trade the range and wait for the breakout in either direction so with the British Pound here this one has also gone sideways we are in this level here so for now it is overall it is kind of pointing to the downside but if there is no real no real sort of direction here either because we do have this uptrend and now we are seeing this this pullback so it could be a pullback so we could just see one of these moves back into the bottom here into 135 80 so for now I am the weak here has been really not much the candle air is very very small so we had a bullish candle here which was not angling and now we have a higher or lower high and a higher low so it hasn’t really it’s and just inside candle with a little pin so given this situation I’m looking for price to my bias for British Pound and this is just my bias so just be mindful of that we have to watch what goes on my bias is that it breaks down a little bit I think things have been a little bit overly positive for the British Pound because everybody is optimistic that we’ll get these excellent brexit negotiations but like I said before these things rarely go well and I mean there was a reason there was you know brexit vote so having a soft practice brexit is unlikely in my opinion however things could change so that’s why we have to watch what the market does so what I am looking at basically is a retest of this one 3800 level and probably a squeezing like this and my target would be 135 80s I’m looking for price to come down into this 135 80 level and then potentially bounce off of this uptrend line so that’s my that’s how I’m viewing the markets I’m looking for further weakness in pound dollar in to 135 80 however we do have Prime Minister Theresa May speaking so on Friday this could be impacted so keep an eye on that aussie here aussie has been arranged bound here as well but this one is looking more bearish than what we saw with the euro here so for the last three weeks it has held this range but we have a lower high here so price is coming down and we all so have a double top so a few weeks ago we had a double top now prices moving lower so as a result of that I am looking for price to go further down so my bias for Aussie dollar is to the downside I’m looking for a break of this 7760 ish level here and price continuing into 7650 level and potentially even further into 7550 level so I’m looking for price to step down a bit into the next support or resistance level here this has been an important resistance level which has now turned into support so we do need to wake wait for the breakout of this level so what I would be looking for is one of these and then a break to the downside we do have to be mindful of this 7760 ish level overall my biases to the downside and the target for this would be 75 50 New Zealand dollar here similar situation I am looking for price to break down further so price has tested this resistance level several times now and only once did it try to break out to the other side and then reversed right away and with this one here I am looking for a further move to the downside we have had a bearish candle close so I’m looking for a move into 7180 level here that will be the first target and then the second target would be 70 50 level so basically waiting for price to are looking for price to drop so bias for New Zealand dollar would be bearish dollar cad here this has been a bit interesting so we have seen higher lows now surprise is moving higher but it hasn’t been moving high in a very sort of Astra in a very consistent manner so we are seeing kind of back and forth so it’s not as as weak as the Australian dollar for example or New Zealand dollar so for this one my bias is to the upside and again we need to see a break we are into this resistance level right now so we need to see a break of this and resistance that will or the support and resistance level has kind of played out several times but the bias is to the upside so what I’m looking for for dollar cad is maybe so right now we are in the middle of the candle here so maybe back into this 12550 level and then another move to the upside and finally a break to the top here so my target is 120 900 to the up sights of biases to the upside but it’s won’t be as smooth sailing as maybe Australia or Australian dollar a New Zealand dollar here so bias is to the upside and they’re commodity currencies as well so they tend to sort of move at the same time some expecting price to move up higher here it has found stuff so we have a higher low higher low higher low so and higher highs here as well it’s looking for it to move up further euro Swiss franc this one is it’s still in this downward trend here and now I am looking for price to basically again do another leg to the downside make another leg to the downside for two weeks here we have not seen it break the highs so now we have a lower highs as a sorry yeah lower highs and I’m looking for price to go down further into a 3 20 level here so the bias is to the downside for euro Swiss franc pound Swiss franc has been a little bit tougher than our euro but overall though we are still in so we still have this this downtrend here right but it could go up further so with this one I would be careful we do have a bullish candle closed as a result we could see price move either into 130 300 or 13250 so I would look for price to push up first and then do a drop but this one will be tied to whatever happens with the with the British pounds I would be careful trading this one so right now what it looks like is maybe a pullback in the so I’m kind of seeing it as this so looking for price to drop further but it like I said it could pull back into 130 250 or 130 3300 level and then drop from there so that will be my that would be the scenario that I’m looking for for me this is not the best pair to trade this week I am just I’m gonna look for other opportunities probably pound yen and pound dollar will be the better ones to trade instead of pound Swiss franc your Swiss franc I think is a better one compared to this this one here dollar this one is sideways so we have seen it be in this range or staying in this range for the last few weeks now and I am looking for price to potentially retest this level once again and do a double top type of formation so 9450 would be my target to the upside but it is range bound at the moment it hasn’t really gone anywhere in the last few weeks so this one may be another one where we just have to wait and see what the price does here but for now we did have a bullish candle close it did not manage to close above the previous high so it is not overly bullish but because there is still buying going on here we may see price push all the way up into 90 450 level and then drop so I’m going to treat this as a range bound move if the price goes into the hi I’m looking for a potential sell if it goes into the bottom here 90 180 I’m looking for a potential buy so trading this as a range bound market let’s take a look at the yen crosses now with the yen Here I am let’s see so the yen here we are making a lower high here so it’s not overly bullish very very small weekly candle close we have a pen on top so I’m looking for a break to the downside for this one like I said my biases I’m not overly bullish on the British Pound I am looking for four pound to face more hurdles as the whole talks negotiation talks continue so for me I am looking for further breakdown of this my target would be 140 320 level so I do want to see a break of this level of the 148 20 ish level and then I continued move to the downside so we do need to make sure that the price holds below this pin here or maybe 140 level and then I’m looking for a break to the downside so bias is to the downside for pound yen euro yen here the bias is also to the downside and the next target so the next target looking at is 128 50 here so this is we have last this is what we have last three weeks we have seen a downwards move we have a bearish pinbar here for the weekly candle close we are in two support here though this resistance turning into support so we do need to see a break of 130 but my bias is to the downside I’m looking for price to go into 120 850 level so looking for euro yen to drop a bit this one here Aussie yen we were bearish and it has come into this 83 30 level so the bias still is to the downside but as we can see price is struggling at that level and this is the where the previous support resistance is coming from price had struggled in this area before but the bias is still to the downside I’m looking for a retest of this 83 30 level and then looking for 8250 level to the downside so looking for price to draw further overall the bias still remains to the downside here but do keep in mind we are kind of coming in to these levels that are almost to the bottom here and also just to mention with Japanese yen strengthening so much there will be additional pressure or added pressure on on Bank of Japan to react so sorry looking at the weekly here we do have a bearish pinbar so I’m looking for price to go into 8250 and potentially even lower into 8180 level so there will be additional pressure or added pressure on Bank of Japan to intervene so they have said that they’re not likely they’re not going to intervene in the markets but the history that Bank of Japan has is of intervention so what could happen is if the Bank Bank of Japan is not very comfortable with the strength of their currency because if the currency is expensive the exports will drop and they don’t want that Japan is such a big exporting country that it would have material impact the strength of the currency has a material impact on their economy so as a result of that Bank of Japan does not want the currency to be high and before they would just go intervene in the market before really letting anybody know however there has been a lot of pressure on them to not do that everybody’s criticized them because it creates sudden moves in the market that nobody really likes or cares who cares about so as a result of that they have sort of stayed their hand in terms of intervention but the more expensive Japanese yen gets more we see drops and everything else against the Japanese yen the higher the likelihood of Bank of Japan intervention so generally will we see as Bank of Japan will just come and sell a whole bunch of yen and it will create this move to the upside and all the yen crosses so just be just be mindful of that because as the further it drops all the yen crosses drop the more the likelihood of Bank of Japan intervening in the market all right so the last one here is our dollar yen dollar yen we are still staying below this previous support level and now turning into resistance I’m looking for price to drop further and the target will be about 104 50 level right into this one here in this case we could see a push up into this to retest the support and resistance level again 107 80 level and then looking for price to test a 105 50 and then 104 50 after that so bias is to the downside for dollar yen as well all right any other questions or any other anything else you want me to look at first depends when to enter the trade I usually so I look at my weekly analysis at the beginning of the week just to sort of get a get a lay of the land and get an idea of what I’m looking at for the week to come and then based on how things play during the week because the news may come out and things may change market is dynamic so I look at the daily I do the daily market analysis and I look at the daily candle states and that’s when I would start looking at where to take the trades from but when I actually plays the trade I am looking at a lower down lower timeframe to go into the position but at the levels are coming from the higher time frame levels I hope that makes sense anything else um my what indicator do I recommend I personally don’t tend to use too many indicators what I do use our pivot points so these are pivot point levels and these green are pivot points and R 1 R 2 and s 1 s 2 levels so this is one of the indicators that I do like to use and then volume is another one that I tend to look at so I have a point in volume I would say will be the two that I personally prefer alright so I don’t see any other questions alright so that’s all I have if you so we were just talking about daily Market Analysis if you guys are interested in joining me for for the daily market analysis that’s part of trade room option that I have so if some if you want to join me in the trade um there is a private skype group where I share my trade ideas and analysis I also when I take live trades I send out alert so I normally put in where I’m entering the trade the entry level my stop loss level my take profit target and I also manage the trade so when I move my stops and the stuff like that so I send all of that information out and I also we also do daily market analysis so we have a similar call every night at p.m.

Eastern it’s recorded so if you’re not able to make it you can always you know get the call or get the recording of the call and if you join the trade room you will also you’ll be able to based on the daily market analysis call you’ll be will you’ll get the levels that I’m looking to take trades from so you can choose to take the entries that I’m taking or if you wanted to take additional trades we go through all the different crosses so you have levels for all those crosses to trade from you also get my pivot point indicator which is one I that I do reference in the trade room so you can join this on a monthly basis and the cost for that would be ninety seven dollars a month and you can go to trading with Venus Campos trading – signals for that or if you wanted a better price point I do offer some yearly and yearly options as well and these are the different links you can go to to access those alright so that’s all I have I will call it a wrap now so you guys have a wonderful rest of the weekend and I will see you next time

As found on Youtube

The ULTIMATE Forex Trading Course for Beginners

Hey hey what’s up my friend so welcome right to the ultimate forex trading course for beginners right so this is for you right if you’re new to forex trading you have less than a year of experience or you want to learn more about a forex markets then this course right will benefit you greatly so let’s begin so first and foremost what is forex trading right so forex trading right or the word forex refers to foreign exchange what you’re doing is trading one currency for another so who treats for x and y so there are numerous market participants or who treat forex for example you have the central banks banks corporations and retail traders so central banks could be because right they want to make their economy more competitive right by devaluing their currency okay so this makes their currency cheaper and exports will be more attractive for banks they could be because they are a market maker they are making a market in the FX market or perhaps they are trying to hitch their own portfolio for corporations right it could be because they need to buy raw material so they need to you know get involved in the foreign exchange for example if I’m Toyota I need to buy raw materials for my tire maybe the tire is a I’m buying from India so what I’ll do is that I would need to sell some Japanese yen right and buy Indian rupee right so that I can take this Indian rupee right and go to companies in India to exchange for the raw materials for my tires an example and for retail traders it could be because right you are trading the forex market to speculate to try and earn a profit to know generate a better return compared to you know putting your money in a bank right so these are the few groups of traders who trades the forex market so as you can see over here this is roughly how the forex market be the inter the web the network of the forex market looks like so in the center right the one which does the bulk of this transaction there are central banks and the major banks right then you have the investment funds and corporations who are trading with the banks and then finally right retail traders like you and me here retail traders retail traders or who traits in the market as well so this is the hierarchy right you can see that at the top of the food chain is the major banks the central banks then followed by medium-sized and smaller banks then the brokers okay H funds corporations and finally retail traders and a bottom so this is from baby bibs right advantages of forex trading so there are numerous advantage of you know forex trading number one there is high liquidity right so unlike stock said sometimes if you trade penny stocks or small cap stocks right there is no liquidity right and you have to pay a very wide bit a spread but for forex trader you typically have high liquidity so this means that you can get in and out of the trade right relatively easy right without paying a huge premium or or spread on it there is low barrier to entry any anyone can just open a forex trading account doesn’t really it doesn’t mean that you must be a high net worth individual and it’s a trap nope barrier to entry is no certain forex brokers allows you to trade nano lot so this in return right allows you to better manage your risk so for example one of the big problems that I think most stock traders face is that let’s say you have small capital let’s say 500 dollars and if you want to apply proper risk management on stocks it can be difficult because let’s say you’re on the risk 1% of your comp so $500 is I got 5 bucks if you pay the transaction cost it’s gonna be more than 5 dollars right for stocks right you you you get your broker to do the transaction or I think maybe one round trip is maybe really 10 or 20 dollars so it’s difficult to apply proper risk management on stocks especially with small accounts but for forex it’s possible because you can treat nano lots right and also Forex it doesn’t have t what we call the traditional transaction cost you only pay the spread right so this allows you to kind of like even risk $5 on a trade in forex if you are having the ability to treat nano lots with certain brokers so it really helps you better manage your risk you can treat any time you want forex pretty much is the market is open to in 4 or 5 from Monday to Friday so you wake up the market is open you sleep market is open and yep low transaction cost as I mentioned earlier so just a quick recap right so forex trading exchange of currencies traded by banks corporations and retail traders and this are the advantages that we covered earlier so now what are some of the different currency pairs in the market right there are three brought currency pairs that you should be aware of right the major currency pairs crosses and exotic currency pairs so the major currency pairs are are typically currency pairs there are the most liquid right and they have a dollar element to it for example euro dollar pound dollar dollar Swizzy dollar yen Aussie dollar and kiwi dollar and dollar Looney notice that they all have the USD element in all of these currency pairs and this seven currency pairs are the most liquid currency pair so that’s why they call it the major currency pairs the most popular and most heavily traded currency pairs and if you look at this right in 2016 right the number one most actively traded currency pairs is USD right number one followed by euro followed by yen pound or Z etc so now let’s talk about the cross currency pair so so cross currency pairs are currency pairs that don’t have a USD element to it for example euro crosses right means that the currency pairs has a euro element to it right euros Swiss franc euro pound euro Aussie the yen crosses right euro yen pawneean Aussie yen pound crosses right means that the currency pair have a pound element to it an Aussie on New Zealand and pound Canadian what about exotic currency pairs so these are usually currency pairs which are thinly traded they have a wider bit asks spread okay and the swings in this market can be more volatile as well so some of these examples are dollar against the African Rand dollar against the Mexican peso dollar against the Thai Baht dollar against the Indian rupee dollar against the Turkish lira okay so moving on right let’s talk about the different forex trading session so unlike the stock markets where you have just in one session the forex market you have typically three different sessions the asian session the london session and the new york session and they all open at different times of the day okay and it’s it’s even worse right there these times of the day are not fixed because it really depends on where you are in the world if you’re in Asia right you’re open I mean you’re your timezone right the time is different compared to someone in you yo so I’m just gonna go with a general example right and assume that you are from the US right so for the Asian section right it starts at p.m.

To p.m. EDT right and this is doing summer period from April to October for the London session is from 3 p.m. to 12 a.m. EDT and the New York session is a.m. to p.m. EDT now what if you are not in US maybe you’re in London maybe in Singapore Malaysia right how do you translate this to your own local timezone very simple just go down to Google and search for forex trading session hours right so I’m sure there are a few results right now the top few one that will tell you right what is the current for accession in your time zone in your local time zone just do a search right forex trading hour session along that lines right forex trading hours right now forex market hour session something like that right and you will know what is the current forex trading session in your time zone and next right if during winter period around October to April right your Asian session starts at p.m.

To 3 p.m. est London is 3 p.m. to 12 a.m. est and New York is a.m. to p.m. est ok so which is the best session to trade forex so I think this kind of applies to almost any markets right the best times to create is when there is volatility in the markets because only when there is volatility only when there is price movement can you make a profit the market don’t move you’re not gonna make a profit at all right you can squeeze blood out of a rock so you need to be trading when there is most volatility in the markets and for day traders especially right the most volatile session is the London session and to be precise right the most volatile period is actually in the London and New York overlap session so you can have a look at this this is from a window you can see that this is the start of the London session end of London session start of New York session end of New York session so you can see that when London session starts right volatility has picked up and historically right the market is most volatile during the London and New York overlap as you can see over here the volatility here is the highest during this three or four hours okay now what about when is the best days to trade Forex so the concept is still the same right you want to be trading Forex when the market tends to move right on a certain base right which case does the forex market tends to move the most so Tuesday Wednesday Thursday generally is where the forex market tends to move the most right if you look at this this is from baby pips you can see that uh this is the currency pair this is the days of the week right and this are the movement of the the movement of the currency pairs on average right on this different days of the week so for example euro dollar on Tuesday it tends to move around 142 pips on euro dollar on Wednesday it tends to move about 136 pips Thursday it tends to move about on average hundred forty five pips so as you can see that over here if you look at it right Tuesday Wednesday Thursday tends to be when the FX markets move the most right so if you ask me Tuesday when I say Thursday those are the best days of the week to trade Forex now moving on right let’s talk about some common forex trading terminology so this might be slightly different from stocks right but generally the concepts right can be applied to C right so we all talk about what is long what is short what is the leverage of margin what is a bit what is a bit and ask and what is the spread so what is long and short so to put it simply right when you see that I’m long euro dollar it means that right you’re referring to the trade direction right you’re bullish on euro dollar you want euro dollar right to go up because that’s where you’ll make a profit so if you are long right you want the market to go up so you can make a profit if you are sure right it means that you want to market to go down so you can make a profit this means that you have a bearish bias okay so what is leverage and margin so leverage we first try to how much more you can trade relative to your account size so let’s see an example right let’s say you have a $10,000 trading account right $10,000 trading account and you’re using a average of let’s say a one to ten leverage one to ten this means where you can actually control ten times more than your initial capital this means your broker lets you trade up to a hundred thousand dollars worth of currency ten times more than your initial capital so this is what leverage means right how much more can you treat right relative relative to your initial trading capital so margin is just another way of looking at it right if you just take a hundred divided by leverage so for example earlier the leverage is 10 so hundred divided by 10 it says that you know your margin requirement right all right yet the margin require is just 10 percent right so if you want rate her at all one hundred thousand dollars worth of currency you only require to put up a ten percent margin which is ten thousand dollars so just different ways of looking at it one thing to point out is that leverage right it’s a double-edged sword you can make more in trading by the same time you can also loose more so let me share with you an example so let’s say again you have the ten thousand dollars trading account all right and you’re using a one to ten leverage of 100k will go with a stock example let’s say we’re gonna buy some shares of Apple right say the shares of Apple is currently $100 so let’s say you know shares of Apple has now moved up right two hundred and ten dollars one hundred and ten all right so it’s an increase of 10% so if there is if you’re trading we don’t leverage right you can see that you have actually made a gain of $1000 1k if you are using leverage you have a made of gain of panky so if you put into perspective right in percentage terms right what has happened is that without leverage you haven’t made a return of 10% with leverage you haven’t made a return of a hundred percent of your money okay this might you know looks looks good right and sounds really awesome but I want you to to take note that what happens if the shares of Apple drops by ten percent let’s say right now from hundred we move down to ninety dollars so your capital with ten thousand that’s right it’s a drop of 10% so you have lost one key you’re trading with leverage right ten times leverage right now a drop of 10% you have lost 10 K so pretty much pretty much essentially you have wiped out your entire trading account right when the shares of Apple has drop 10% so this is why I say that you know leverage is a double-edged sword you want to use this right with a responsibility you really must know what you’re doing so if you ask me if you want to learn more about leverage on how to better position size your trade right this is more advanced stuff you can go down to my website trading with Raina dot-com / 4-h this – Reese – management all right that’s where you can learn more about risk management in position sizing so now moving on right what is a pip a pip stands for point in percentage it refers to the four most currency pairs like the crosses the major currency pairs it’s the fourth decimal place so let’s say for example euro dollar right now is trading at one point two five one one okay so let’s say it moves up by two pips so what this means right is that it does now move up by two pips is big now the price is trading at one two five one three right so you’re looking at a fourth decimal place over here right for the most of the currency pairs for the yen currency pairs is slightly different right so for again it’s let’s say straining a 120 dot 105 pips so it’s now trading one five right you’re looking at this second decimal place over here for the yen currency pairs right so bear in mind right so P basically refers to the smallest price move right in a currency pair and one thing to note right sometimes you know brokers they just try to be funny I knew you can even have something called the pig pen right so P pen right now for most currency pairs is the fifth decimal place right and for this one over here is the decimal place so you can really get email I mean you can really get really precise about it if you want to right so just something to share with you right it’s called the pipette so what is the billion ask all right so this is a the bit right refers to the price that you can sell it and the ask is the price that you can buy it so whenever you trading Forex or whether you’re trading stocks right it’s not just one price it’s always to price the bit and ask so let me share with you an example right again let’s say for euro dollar let’s say it’s trading at 1 200 1/1 203 okay the higher value is always to ask and the smaller value is always the bit so if you look at this right and you refer to to what I just mentioned earlier the ask is the price you can buy it so if you had a long euro dollar right now I’m gonna buy euro dollar this is the price you have to pay one point two zero zero three if you want to sell euro dollar right now this is the price that you can sell one point two zero zero one okay so this is what we mean by the bit and us the price that you can buy and the price that you can sell it and the difference between the ask and a bit is what we call the bid-ask spread right so if you look at this right right now if you take this one – this one you realize that it’s two pips right so this in other words right is that spread the transaction cost that you have to pay to transact with your broker so generally right for major currency pairs the spread right it tends to be tighter tends to be smaller whereas if you are trading exotic currency pairs the spread over here tends to be bigger wider so in other words you’re paying more right to create the exotic currency pairs so what is the spread yep as mentioned earlier right the difference between the beat and ask so now how do you read a Forex chatter I so let me share with you an example okay so this a Forex chart so this one over here is a from trading view you can go to trading view come over here or I didn’t get this access to free charts let’s have a look at candlestick chart right so what do you see over here right now is this red line over here is the the price right now to create New Zealand dollar this is New Zealand dollar okay so if you look at if you want to trade right let’s say on the sell you notice that again there is two price the bid and ask if you wanna say for example you see what I do I click on trade sell New Zealand dollar selling in a bit that’s what we mentioned earlier right you want you always sell at a big price let’s see it right now I want to buy buy New Zealand dollar you’re buying Eddie okay so as you can see right now the bid-ask spread on New Zealand Dollars you just take this one – this one is pips okay so this is the bit ask spread so in other words right let me just you know break it down you know – what it all means so let’s say you want a long New Zealand dollar right now right so your longer this is the price that you have to pay so what this means is that to buy one New Zealand dollar all right you have to pay zero point six six zero one seven US dollar right that is the cost to buy one New Zealand dollar right now you have to pay zero point six six zero one seven you install it okay so that’s a pretty much how it works so moving on that’s how you read a Forex chart all right moving on right what is the Forex lot size so lot size refers to how much of a Forex currency pair you can buy all right so there are different lot size so the first one is what we call a standard law hundred thousand units or currencies right standard lot meaning lot 10,000 units micro lot thousand units and followed by nano lots anything below a thousand units so nano lot is a not offered by by all brokers or I typically brokers that a market maker they tend to be able to offer nano Lots right otherwise the most common Forex lot size that your trade is either the standard or the mini law so how do you calculate your gains and losses right so let me just walk you through an example let’s say you know earlier the New Zealand dollar example let’s say let’s let’s make it euro dollar it is still like the most common currency 1.200 one okay let’s say this is the price that you buy un long L and this is the price that you sow a dry you so let 1.200 five okay so surprise pull it s right sell this is long so what is your game on this trade well you can tell that you have actually earned four pips right you can tell right you and four pips can’t even spell it right you earn four pips right because you take a one point two oh five minus one point two or one that’s a difference of four pips but how much do you make on this trader is dependent on your Forex lot size are you trading a standard lot are you trading a mini lot or micro lot so a standard load right is hundred thousand units right so generally our stand a lot higher a thousand units right each team right is $per people now one thing to bear in mind is dead depending on the currency that you’re trading depending on the currency that your account is funded right this this our figure over here will change over time okay so you might need to check with your broker what is the value of one pip to you for one standard lock so let’s say you know you’re funded for USD account and your trading euro dollar so it will be $10 per peep so if you make four pips just now you saw right you made four pips right okay let me let me I’m a little bit okay okay for people is understandable for people right so what you’ll do is you take four multiplied by ten so there is a gain of $40 for you on that tree right you take the number of pips that you have earned or lost right multiplied by this uh how many dollar per pip that you’re treating right this value over here is dependent on your Forex lot size if you are trading so let’s say ten thousand you need to write it will be one dollar per pip thereabout okay so this is how you calculate your gains and loss in forex so moving on right the different types of Forex orders right so there are a few types right market order Lehman order stop order stop-loss order so let’s talk about market order so market order is an order right that tells your broker that hey you know I want to enter the market right now I’m the boss I don’t enter right now so the pros right of this approach is that you know for sure that you will be in the trade the broker will execute the trade for you and whatever is the markets prevailing price that that was like – this is that you’re actually paying a premium sometimes the market is moving for us it breaks out it’s you know going up up up up up and if you hit a market order you’re paying a premium okay so so that is the pros and cons right of market order limit order and on the other hand sir you enter only if the market comes to your desired price level let’s say you know Apple shares now is trading at $120 you think mid last too high I don’t pay her $20 for Apple shares what you can do is use a buy limit order all right and put it at let’s say $100 so this means that if Apple shares comes down $200 only then will you get filled on the tree so the pros of this approach is that you are typically right entering at a cheaper price right you let the market come to your price level the downside of this approach is that you might miss the move because Apple might not come back $200 it might go up to 150 200 and hey you miss the boat man and the other downside is that you’re actually trading against the current momentum because if you think about this right it’s the market fill you on the trick you’re actually trading against that down move against you all right so that might be a something that you want to know be aware of as well what about stop order right so a stop order is typically used right when you want to trade a breakout when the market is moving in your favor then you hop on and get on board the trade so it’s like let’s say Apple shares right now is $120 and you notice that this price right of Apple shares has not break above hundred and thirty dollars over the last two years all right so you want to trade a break on it on Apple because you might believe that hey if Apple hits hundred thirty dollars there’s a good chance it could be at 140 150 in a few weeks time so what do you do is you can place a buy stop order on Apple shares at 120 dollars and so you only enter the trade if the price hits hundred and thirty dollars and above so this is what we call a buy stop order the pros of this approach is that you’re entering your traits all right with momentum because the market right now the market has your back right Whitney said your back right so this is why you only enter when there is momentum in your favor the downside to this is that this might be of Spreaker right so what’s the false breakout is actually say the market right over here it breaks out and then it does a reversal and goes back into the range so this is what we call a false breakout all right so that might be possible right if you are using a stop order and stop-loss order right is pretty much an order right to exit your trick if it goes against you it’s somewhat like a insurance right to protect yourself to protect your account if the trade goes against you so let’s say again for example Apple shares you buy it $100 okay and you have a stoploss order at $90 so what this means right is that if the market if the price comes to $90 you will exit the tree all right so this is what we mean by using a stop loss order right so the the beauty of this is that you’re actually no cutting your losses you’re limiting the damage that could be done to your trading account the cons of this is they’re you know often right if you I would say often right depending how you set your stop-loss everybody there’s a very possible likelihood right there the market could hit your stop-loss right and then reverse back in your initial direction and then you might say oh man why do I use the stop-loss I’m so silly now I’m out of the trade and the market has went back in my favor so yeah you’re gonna get dead quite a number of times in your trading journey right it’s a fun and parcel of trading so you wanna Brit embrace this fact all right so this could jolly well happenin if you think about this this is worth it right because what if the price doesn’t go back into your internet direction what if it drops to like five dollars right you have pretty much you know wipe out a huge chunk of your capital so stop-loss order is like paying insurance right it’s like to give you a comfort of mind to know that you know you are protected no matter what happens right but sometimes right I would say that stop-loss right it’s like paying insurance it’s such like to pay insurance but you know when when the shit hits the fan right you’re glad that you have your stop-loss there to protect you right so that’s the the message there on a bring across okay so now the different types of Forex charge so generally there are or there are many types of Forex chart but we’re just gonna you know share with you dear three common ones the line shot bacha and the candlestick cha so if you look at this one over here I let’s look at line shot first line shot typically it’s a it’s a line on your shot right so he only shows you what it does is that it connects the closing prices of the chart okay see okay you can choose it already on the choose the closed open hi whatever but by default it’s usually connects the closing prices on a chart and it shows in a form as a line on this on the chart it’s very useful to identify the direction of the trend if you if you’re not sure you know what is the trend okay so there is a line shot moving on right we have what we call a bar chart so a bachelor different okay so I’m just gonna share with you how to interpret it so let’s talk about the the green one you see over here the green one typically means something like that right goes up okay okay so this is a green color bar chart so what this means right is that the open price right or rather than the closing price is above the open so this is why it’s bullish right the market has closed higher for the day so this over here this line and you see over on the left is open okay this one over here is the closed and this is the high of the day and this is the low of the day I mean sorry this is the low of the day alright so if you’re looking at a daily timeframe this is what it means if you’re looking at a one hour time frame then this is the high of the one hour time frame this is the low over the last one hour okay and if you’re looking at weekly timeframe this is the high of the week then this would be the low of the week okay the Kulu of the week right so this the again open and this is the close now what if you see a red color bar what does it mean well it’s just the opposite actually so getting the tools okay so if you see a red color bar so what this means right is that again right if you are looking at a daily timeframe this is the high of the day low of the day this is the open and this is the close this should be a quite common sense because this is a bearish but because the price has closed lower for the day alright has closed below the open so the close has to me below D open so the open is on top the close is below right so this is how you read a bar chart and for candlestick chart okay let’s have a look right same thing the concept is the same for green color bar okay let’s say green color bar this is the high of the day the low of the day it’s called LH so for it to be green for it to be bullish right where must the open B well the open must be below the close right so this over here is the open and this over here is the close make sense so now what about the rate color bar that you see so with the red color bar is just the opposite the red color bar like this right here so again this is the high of the day low of the day H no this is the low and this is the high and where is the open on the top or the bottom well if you recall right for the bar to be bearish right the open has to be on top right open and this is the close price close lower for the day okay does it make sense then let’s move on so now that you know how to read the different types of Forex chart let’s you know understand the different types of Forex analysis right so your fundamental analysis you have technical analysis and sentiment analysis so what is fundamental analysis so fundamental analysis typically deals with information like GDP across domestic product interest rates right a non vampiro consumer price index all right the macro in economic numbers figures right these are all things to do with fundamental analysis on the other hand right when you are dealing with technical analysis you are using tools like you know support and resistance candlestick parents Fibonacci ratios and etc right typically stop that you know gills with chatting right boils and there are falls down and falls under technical analysis and as for sentiment analysis you typically try and engage the sentiment of the markets you’re trying to identify what are the players doing so what you can do is to use you know tools like the commitment of traders report it tells you what are the commercial traders doing what are the speculators doing what are the was there about commercial speculators and I think was it was at the third cake that category right so this is what the common problem one of traders report would tell you right what are the different players of the market doing and to give you a sentiment in the market then you serve that the longshots ratio right know how many traders a long company a short to kind of give a sentiment do you know our traders bullish or bearish so moving on right let’s talk about the different types of trading strategies right so there are many trading strategies out there but generally it can be broken down into you know one of these three position trading swing trading and day trading so let’s talk about position trading so the idea right behind position trading is there you wanna you know okay let me just get the color right is that you want to capture a trend market so let’s say for example the market is in an uptrend okay and then it comes down a bit so it’s a position trader what you’re interested is to capture the meat of the trend right the meat of the trend right you can’t possibly get in near the lows or the highs but you’re just focused on capturing the meat so the meat of the trend right now in the bulk of it so that is what a position trader tries to do so you’re typically trading on the four hour time frame and above the for our daily or even weekly time frame and it’s very suited right for those with a full time job because you don’t need to monitor the markets all the time right you can just put on a trade go to work right settle your commitments and just come back before you sleep just check your charts once or twice per day that’s enough right because position trading takes time to play up swing trading on the other hand right it’s usually between the 1 and 4 hour time frame and it’s for those with full time jobs but you want a little bit more right not so you know passive like a position trader so swing trader right your goal over here is just to capture one swing in the market so what is one swing so this over here is one swing this is one swing this is another swing and this is one swing so as a swing trader you’re just interested in just capturing one swing in the market and that’s it you’re not interested in writing the entire move so if let’s say the market right it’s a in a trend right what do you want to do as a swing trader is to buy near the lows of the pullback and then as the market hits high you just capture this one swing over here and that’s it ok so day trading right is I would say a faster form of trading right it’s really trading below the one-hour time frame and it’s for those want rate for a living right day trading I would say it’s quite hard for those of you who have full time job because you know day trading week requires you to actively watch your trade manage your positions and if you have you know full time commitment elsewhere day trading is the last thing that you want to do alright so for day traders right typically you are just trading off the lower timeframe in capturing the introduced volatility right so that’s pretty much what day traders try to do so now let’s talk about the different types of forex brokers right I think this is an important topic and a topic that many of you are want to know more about right so for forex brokers generally it can be broken down into one of these two categories right dealing this broker and a non dealing this broker okay so let’s talk about dealing this broker right so dealing this broker and I pretty much brokers that are otherwise called market maker some of you might think what man rate a market maker right so you have you know like sort of bet blood against market maker because the handle stops yada yada right but just the thing right market maker is nothing wrong it’s just the way the business model works right what they do is that for market maker you’re a trader right you would treat if the broker okay so the broker would then what they do is they were if you’re like you know consistently profitable trader they would you know usually try to make your trades with other traders that you have on hand so they kind of net off their position or pass your trades right to other liquidity providers okay so they don’t have to have anything dude however if they kind of see that hey you know treated it loose consistently what they’ll do is just do you know trick against your position right they won’t purposely no ha no stop loss and stuff like that but it’ll just trade against your position take the opposite side of your position because they know in the long run right you tend to lose overtime so that’s the way you know they they handle their business operation right they won’t go out of their way to purposely you know stop your of your traits and the reason I say this is because the broken industry is highly competitive if you’re gonna do this to your customers right it’s gonna be a matter of time right through social media to reporting right before the word gets out right and you can have a bad reputation and you know you might even lose your entire business license altogether so it’s not worth right just to turn a few measly pits from a few traders to risk losing your entire business operation okay but the fact is that they will take the opposite side of your trade see they look at your past record and realize that hey you know you are not a very profitable trader you tend to lose over time and to make things easier for them they just take me opposite side of the trade right and you know squared off so on the other hand right you have what we call the okay let’s let’s turn a little bit more about this right so basically their market maker they take the opposite side of your trade and you it depends right sometimes they can offer you a fixed prep sometimes the spread is not fixed eyes slightly variable right but more or less right over time you tend to realize that the spread of your traits are pretty much fixed and for market maker they allow you to treat men a lot so if a broker it allows you to treat smaller than a thousand units high chance right it’s a market maker okay and again I repeat right there is nothing wrong or bad about market maker it’s just the way they run their business is their business model so now not dealing this you have what we call ACN electronic communication network and STP straight through processing so let’s have a look right an on dealing desk broker right so for example this one is an EC n right what they do is that the trader right will trip the broker and a broker will just connect you directly to the interbank market right means you can see the order flow of the other market participants for ecn okay you can directly interact with other liquidity product providers or other ECM participants right and usually you’ll be charged a commission on your trade so for example not only will you have to – a for easy and right you can actually queue at a bit and offer so you may or may not have to pay the spread right if you get filled on a bit on the offer okay but one thing for sure is that you will be charged a commission for every trade right depending your broker how much we trust you right you will pay a fixed Commission on it for this so-called service that a broker is offering you so another type of a Nandi link this is what we call a straight-through processing a broker what they do is again right here the trader right is the broker so the the broker will get a quotes from all the different liquidity provider right and then share share the most competitive one right with you right so what they’ll do is that this are currently the bid and ask right by this liquidity provider a B and C so what they’ll do is they’ll mock up this this spreads slightly right and then pass on the cost to you so what they learn is the the spread right the additional spread right from this uh course that you receive from the other liquidity providers okay so this is how a straight-through processing broker works so you can link you with other liquidity providers right and a spread is variable for this right so what they’ll typically do is that they link you with the other liquidity providers right they would then help you find you know the prevailing bid and ask spread right and then they bring back this piece of information to you and then just add on their own mark up their own spread right and that’s how they kind of earn it from you right for this service that they provide you with the other liquidity provider so this is like kind of you know one step behind the easy na you see earlier the EC it can go directly to the liquidity pool put in your orders and see the orders for this STP right straight through processing you can see the orders directly right the only the only the brokers that you trade with can see the orders okay so this area’s a little bit gray over here so who to choose right over here as your broker so you go with the ECM STP or market maker so for dealing des right or otherwise known as market maker I recommend it for new traders because primarily right they allow you to trade near no Lots this means that you can trade less than a thousand units and help you better manage your risk all right so this is important for new trainers because you don’t want you know go in with a fixed minimum lot size like one lot and then if your account size is too small you can apply proper risk management you might you know end up losing a lot faster so for new traders I recommend going with idling this also if you are a swing opposition trader I’ll see a dealing this isn’t that bad after all because as a swing and position trader your stop-loss so it tends to be pretty wide you know to 300 pips no problem and for dealing that’s right even though they’re spread might be slightly higher the if you copulate the spread right as a as a hard call it a spread as a function of your stop-loss right the spread is usually like what one over hundred of your stop-loss so it’s very small as well so if you’re a swing opposition trader right I don’t see why you might not want to consider a deal in this so for non dealing this I would recommend for traders who trade actively right you’re always in and out of markets right so this is where you want to get the best competitive spread right so I recommend it for day traders or scalpers to go with the non dealing deaths and this is usually for traders who are more experienced definitely and have a decent account size you give a thousand or two thousand dollars it’s not gonna make sense to be going with a non dealing desk okay so now how do you select a Forex broker so I’m gonna share with you a few things you know that you want to pay attention to right number one regulation execution customer service ease of weed roll right so let’s talk about this right so regulation right you want to make sure that your broker is regulated and regulated in the right countries if you ask me right if you tell me that you know hey this broker is regulated in Cyprus I don’t care you know that is regulated because it’s in Cyprus I don’t even feel safe so if you wanna you know make sure that your broker is regulated I would suggest right make sure it’s regulated by through reputable authorities like you know hey Amy yes monetary authority Singapore I think you have the FCA and a few others right from UK Australia as well so those are regulatory bodies right that you have more confidence in okay second thing to take note of is the executioner and how are your traits being executed is it like pretty instantaneously or is there like always a delay you get a record you know your your your orders get rejected right so you want to pay attention to how the brokers execute your trick shotting is a customer service I think it’s important right to have a life help desk when the market hours are open right you know speak to someone like you know maybe there’s a big news release that’s coming out maybe your position got stopped out you wonder why that happens right you want to speak to a customer service that have offers live chat support know you know send an email and wait five days for reply right it is that is bad and is a withdrawal you want to get your money you know pretty quickly right I would say in this day and age you should get it within five working days so I know it is you know telegraphic transfer and stuff like that so either withdrawal or it should be quite easy nowadays all right so let’s say for example you treat if your broker and you know you find that your broker did something unjust to you how can you protect yourself right so here a few things that you can do right number one record and screen capture everything right every time you put on a trade or you for example you get stopped out right for no rhyme or reason right record the trade the chart right and screen capturing okay second thing you can do right it’s a so once you record and screen ship capture everything right before you go to step two and three right you want to know reach out to your broker first and ask hey why is this happening right sometimes it could be because is that there is a big news event that’s coming up right so this is why the spread tend to widen right and it’s not the broker wants to purposely widen the spread to stop you sometimes it’s because there is lack of liquidity in the forex market like before NFP right the spread tends to widen so if your stop loss right etcetera is near the market where is trading right now there’s a good chance it could get stopped down so anyway screenshot your chance and bring it up to your broker first and ask for an explanation if you are happy the explanation right and then you know trait in a way that you know it doesn’t happen or makes it unlikely for it to happen to you again however if you’re not happy if the explanation and you feel that now they are doing something fishy behind the scenes right you can always bring up to social media okay I don’t know there are so many forex trading groups out there share the post right and let others you know kind of you know give you their opinion if they feel that hey you know is something fishy something is wrong right the post will go viral right and the broker would get a bet read from it and the last thing the broker one is you know to have such a bad reputation to effect no future business and finally right if you still you don’t want to do something about it right bring up to the authorities right you for example if you’re in Singapore you can go to mes and you know hey them say hey you know this broker is you know I suspect it’s no it’s not being fair right you bring them to mes mes would then you know find the broker right and say hey I received XYZ email from this person right you know what’s going on blah blah blah so the broker will get scared because they might risk losing their license if you know many traders you know reporter of such cases so you can also bring up to the authorities right and you know to have them look into the matter so I’ll say these are a few things that you can do to protect yourself right when you are when you are trying to trip with the right forex broker all right okay so with that said right I have come to the end of this forex trading course I hope you’ve got as much value out of it and if you want to learn more okay you can go down to my website trading with Rainer calm at the top over here okay trading with Viacom right and over here right we will cover more in depth about different trading strategies and techniques right so what if you learned so far just the basic foundation of forex trading we have not covered you know technical analysis you know or in debt right so what you can do is go down to my website trading with Rainer calm and over here I’ve got two trading guides for you alright the first one is the ultimate trend-following guy we’ll talk about how we can go about writing massive trends in the market and the other one is the ultimate guide to price action trading how we can better time your entries and exits in the forex market so go to my website click this blue button right and I’ll send it to your inbox for free okay so with that said I’ve come to the end of this video I hope you have you know enjoyed it you’ve got you learn something from it right and and if any questions for me leave it in a comment section below and you think this video is good hit the like button on this video and subscribe to my youtube channel right I would really appreciate it so with that said I wish you good luck and good trading till next time you

As found on Youtube

Key Concepts in Fundamental Analysis for Forex Traders

Hello there, this is Michael for Forex training group and today we’re going to discuss the key concepts in fundamental analysis for Forex traders. What is fundamental analysis first of all? Well, the basic skill involved in fundamental analysis in Forex trading requires an analyst to determine how a currency will react to macroeconomic events, Central Bank monetary shift and political and social news from the currency´┐Żs nation of origin. Namely, you are analyzing or comparing two different economies that are being represented by the currencies that foreign currencies pair.

And based on the differences between those two economies the currency pair is going to move. The next thing that is of use is presented by technical analysis and there is always a big debate regarding which one is more important fundamental analysis or technical analysis. I would say both of them are mandatory while the focus on the fundamental analysis generally remains on news, sentiment and the release of economic indicators, Technical analysis on the other hand relies on the price and price movements of the underlying asset or the exchange rate of a Forex currency pair. What are more the most important economic releases to be watched? First of all employment reports, these employment reports include the unemployment rate, number of claimants or jobless individuals applying for services, payroll levels and so on.

In the United States for example, the most important jobs related data is the N.F.P. the non-farm payroll. This non-farm payroll, it is being released on the first Friday of every month together with the unemployment rate. And it is important or market was violently because of the dual because of the dual mandate the Federal Reserve the central bank of the United States is having namely to keep inflation below or close to 2% and to create jobs. It means that traders know that the Fed is looking at the job data in order to move on rates and that it is all that it is all that matters. Trade balance basically the difference between the countries the imports and exports which has a direct effect on the demand for the nation’s currencies. The bigger all the trade balance is of course, the better for the currency. Current Account on the other hand, one of two components of a nation’s balance of payments the current account is the balance of trade and net cash transfers for a country. Let’s say a positive current account is desired rather than a deficit so the bigger the current account the more positive the currency will be.

G.D.P. or the total value of goods and services an economy produces it is really important . G.D.P. that is growing or a positive G.D.P. that is growing, shows an economy that is expanding and therefore you know whether to avoid an economy that is expanding to size then the central bank Will, and hike the interest rates. C.P.I. or consumer pricing that’s basically represents inflation. Now inflation is on the mandate that of each and every major central bank and not only. So the mandate is to keep inflation below or close to 2% so if inflation at any one moment of time, falls to or or rises to or then the central bank will intervene. Higher inflation means that the central they will hike the rates hiking the rates, the currency will be more attractive. P.P.I . will represent still the inflation but it is the inflation on the produce a side and it is being believed that in time it would be transferred to the consumer as well.

P.MI.. The purchasing managers index represents a survey. And in this survey businesses from different sectors are being asked to answer questions relative to people who are going to be laid off Or if a specific activity in that sector or in that company is going to influence business how is business being viewed in the next period and so on so forth. And everything is interpreting to the fifty level, namely, if the P.M.I. for a specific certain sector like the services sector is bigger than fifty then it is being said that the sector is expanding . If the sector is expanding then the Central Bank will come in hike the rates. Hiking the rate means attractive for a currency. Of course below fifty, this means contraction and P.M.I.s are related to services or calculated to the services sector, manufacturing and construction in some countries. It depends very much on the type of the economy you have in a specific country, for example, in the United States we have a service based economy And it means that the P.M.I services is more important and will affect the currency more than the P.M.I.

manufacturing as the results in the G.D.P. will be more visible. Commodity Prices. The price of commodities can have a significant effect on the currency of both producing and consuming nation . .

As found on Youtube

What is a Bear Market? – Forex Terminology

What is a bear market? A bear market is when the price of a currency pair declines substantially over a period of time. The US Dollar and the Japanese Yen are classed as safe-haven currencies and tend to strengthen in a bear market as the weaker currencies are sold and the safe-havens become in demand if you have any questions or terms you would like covered please write a comment below. If you’d like to learn more attend one of our free forex workshops by clicking the link below to register today .

As found on Youtube