The US economy is starting to show signs of stress in the housing sector again. After yesterday’s S&P/Case-Shiller index showed that housing prices dropped to their lowest post-crisis (2008) levels, today’s Pending Home Sales reading for April has solidified concerns. From March, sales dropped by 5.5 percent, while on a yearly-basis sales increased by 14.7 percent. According to a Bloomberg News survey, market participants were expecting no change in the monthly reading, but were anticipating a massive 22.0 percent increase year-over-year. Even in comparison to the prior figures, which were revised down to 3.8 percent m/m (from 4.1 percent) and 10.5 percent y/y (from 10.8 percent), it’s clear that this report was all-around disappointing.
US Dollar Technical Positioning Still Warns of Pullback in Days Ahead
THE TAKEAWAY: US Dollar technical positioning continues to warn of a larger corrective pullback in the coming days before the larger bullish trend regains momentum.
S&P 500 – Prices took out resistance at 1325.40 to expose the next upside barrier at 1341.90. A break above this boundary exposes 1358.90. The 1325.40 level has been recast as near-term support, with a push back below here on a daily close basis opening the door for a challenge of 1311.10.
Advantages of the Forex Market
What are the advantages of the Forex Market over other types of investments?
When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity.
Rollover
In the spot forex market, trades must be settled in two business days. If a trader sells 100,000 Euros on Tuesday, the trader must deliver 100,000 Euros on Thursday, unless the position is rolled over. As a service to our traders, FOREXYARD automatically rolls over all open positions to the next settlement date at 5:00 pm New York time. Rollover involves exchanging the position being held for a position expiring the following settlement date.
Quoting Currency Pairs
Currencies are quoted in pairs, such as EUR/USD or USD/JPY. The first listed currency is known as the base currency, while the second is called the counter or quote currency. The base currency is the "basis" for the buy or the sell. For example, if you BUY EUR/USD you have bought Euros (simultaneously sold dollars). You would do so in expectation that the Euro will appreciate (go up) relative to the US dollar.
How an FX Trade Works
In the FX market you can buy or sell one currency for another. When you buy a currency, you are said to be "long" in that currency and when you sell a currency, you are said to be "short" in that currency. As the value of one currency rises or falls relative to another, traders decide to buy or sell currencies in order to make profits - since the objective is to earn a profit from their position. Placing a trade in the foreign exchange market is simple and the mechanics of a trade are virtually identical to those found in other markets. Because of the symmetry of currency transactions, you are always simultaneously long in one currency and short in another. An open position is one that is live and ongoing.
GENERAL QUESTION ABOUT FOREX
I am new to currency trading, are your Forex Trading Systems easy to use?
Yes, all offered Forex trading systems are installed and set up with just a few mouse clicks. You will also receive a detailed user manual which includes an easy to follow step by step guide, and you can contact our support team at any time for assistance.
On how many live/demo accounts can I use your trading systems?
The Best Forex Trading Hours
So you already know that with the help of Forex you can trade 24/7. But, you also know about some sessions, right? So what sessions when the trading is round the clock? If you don’t know about the different time zones and Forex trading hours, read on.
The Trend is Your Friend! About Forex Trend Analysis
What do you know about Forex Trend Analysis? If nothing, then I would really be surprised to know that you are a successful trader. Forex trend analysis is life-needed part of Forex trading, the one that helps you really see the support and resistance levels, analyze the investment market and see the bare nature of Forex, so you can always know what horse are you taking bet on.
So, what do you need to make the successful Forex trend analysis? Well, you should at first know what a Forex trend is!
Forex Fundamental Analysis is More Important You Might Think
Analyzing what you do was always important, it helped with finding out what you done wrong and right, where are your weak points, and where are your strong points. But no matter what, many people still underestimated analysis, and this drives them wrong way. But… I hope you’re not one of them? What I will tell you about today, is about the importance of Forex fundamental analysis.
Forex Terms You Need to Know
What do you think, you know much about Forex or not? Are you thinking of yourself as a cool trader who knows everything? What is your Forex level, what do you think?
Ok, I’ve got a question for you. If you’re woken in 3 AM and asked about who’s Propeller Ben, I wonder WHAT will you answer? Huh? Exactly!
So it’s time to learn about Forex Terms! I’m sure that you’re more than tired of learning something every day, but professional and successful traders must know as much as possible about the currency market and everything related to it. And it also means, keep learning all the time.
Why Mostly Forex Trading Strategies wont Work in the Long Run
Forex trading strategies is the term already familiar to you that’s I know for sure. But it’s worth looking closer and making a more familiar acquaintance to see that it’s what worth working with. So, come closer and meet Forex trading strategies – they are worth it!
Is Automated Forex Trading the Better Way to Trade?
Did you hear the phrase like “Money never sleeps”? Do you know what it means? I am sure you do. Money is sleepless. Money is soulless. Well, money has no rest… But you have.
Have you ever tried not to fall asleep in hours? In days? What happens with your attention? That’s right. If you’re not sleeping for few days, your attention is lower than ever. You can’t even focus on reading… What can you say about trading currencies in these conditions!
Trading with Forex Expert Advisor is Easier You Might Think
Do you know what prejudice is? It’s like you hear that someone said that something is like that. This thought is always with you from that moment and you can rate something even without testing it – just believing what other people say. In some way, it’s good. But sometimes, prejudice can leave you without many interesting and needful things in your life… Let’s talk about prejudice before Forex Expert Advisor today.
Metatrader Expert Advisor – What is It?
I am sure you already heard about Expert Advisors, also known as Forex Expert Advisors orMetatrader Expert Advisors that are helping you with your trades in the most powerful way.
Forex market is fast, open 24 hours, which mean you can make higher profits than on any other market. So far, so good, but a human cannot watch the market 24 hours with a high level of concentration. At least I don’t know one trader who can.
Metatrader Expert Advisors Can be Used To:
- Execute trades according to programmed trade logic
- Place stop and take profit orders
- Close trades according to programmed trade logic
- Handle money management according to programmed logic
Main Advantage from Metatrader Expert Advisors
Metatrader Expert Advisors allows you to plan the trade and trade the plan. Hands free! Emotion free!
Sounds promising? Well, there is a hook.
Traders who are participating on the foreign exchange market are humans and do not follow a fixed logic which means currency trading systems and Metatrader Expert Advisors with fixed logic work only during certain market periods and will fail during other periods.
You Will Win. You Will Lose.
When you use Metatrader Expert Addvisors based on fixed logic, you will make profits during periods the system is optimized for and will face losses and draw downs during all other market periods.
As the Forex market is known as a market what tends to trend a trend following system is most likely the best choice when choosing a mechanical system. In combination with solid money management and low risk per single trade you have good chances to make some profits.
Sounds already not more so exiting, right?
Intelligent and Auto Adaptive Metatrader Expert Advisors are the Key
As the foreign exchange market is a very dynamic market it is required that the Metatrader Expert Advisor you use for trading, recognize market conditions itself and adapt itself to changes accordingly.
I know what you would ask me now. Your question will sound like “Where should I get such a Forex Expert Advisor?”
Relax, you are already on the right place. All Forex systems we offer recognize market conditions like trend, range, volatility, volume and many more factors itself, analyze changes and adapt itself.
A very good example is the Metatrader Expert Advisor EA Sigma. Besides technical analyzes including pattern and inter market analyzes. Sigma recognizes changes in the market conditions fast and with high accuracy. When changes are determined artificial neuronal networks are used to adapt all trading parameters accordingly.
The result is a Metatrader Expert Advisor which performs whatever the market is doing. But don’t take my word only, take a closer look to the actual forward trading results from the EA Sigma. You will be impressed.
Scalping, Day, Swing, Position or Long Term Trading. What is Your Forex Trading Style?
Style is important. We hear it every day, every moment, from magazines, from TV, radio… Style is the integral part of personality, and we all want to be personalities. Well, business is where we really stand tall, where we show our personality in full-size and style is important in business. However, style cannot be expressed in clothes only. What is your Forex trading style?
Styles of trading can tell much about you like a person. Do you know what scalping, swing, position, day or long term Fx trading styles are? Well, if you do and one of them is your style, you can skip this article. But if not – well, you are on YOUR track to be a stylish person in all the ways with your own Forex trading style!
Secrets from Professional Forex Traders
Everybody loves secrets. I mean, absolutely everybody. Secrets are always so magnetic to people, who are curious to know more than others. Love for secrets can turn badly for you… But not this time! This time secrets are coming to you legally. Just for your ears. Are you interested? Now you’re gonna be interested twice, because it’s Forex secrets, to be exact – Forex trading secrets! The big Forex secret from professional Forex traders who earn a ton of money every year with currency trading now can be your official knowledge. Just read this… But – get ready to feel a little disappointed.
Advantages from Metatrader Expert Advisors
Do you know what was one of the qualities Julius Caesar is famous for? Yes, that’s an easy question. He was the multitask person, and could do three things at one time. That’s the record for the person’s attention, and it’s quite unbeatable.
If I ask you a question, it would be – can you do three things at one time? And… The next one. Do you think it’s enough for trading Forex successfully? I guess, the answer is obvious, isn’t it?
Things really change with Metatrader Expert Advisors. If you think you can do everything for a good trade, let us take a look to an example.
Forex History - The History of Forex Trading
Old people say: “Only those who know their past can create good future”. Well, what a great proverb! Do you agree? And, looking back to the world history – it really works! So we can use it to nearly every part of our life. Including our business of course. Every person who is serious in his intentions to get to the top with Forex should definitely know the foreign exchange market – or simply saying Forex history. Do you know Forex History well? If no, than you’re on the right track to find out all of the Forex History just for you here!
Automated Forex Trading, the Best Way to Trade FX
Did you ever hear some rumors about the fact that currency trading is more than risky and there are only few people who win while everyone ends up losing? Well what a fail, right? But, under every fail there’s a bit of truth. Yes, trading is risky. But it’s all in our heads.
Forex Money Management
We have something really serious to talk about today. Of course about money again, but… This time not about spending and so on, but about saving. Have you ever heard about Forex money management or money management at all? Forex money management rules? If no, then sit down and read this. Carefully. Think on this topic, never stop thinking till you understand every word. This is important.
How Professional Forex Trader Earn Money
Have you ever read Theodor Dreiser’s “Trilogy of Desire” or seen the “Wall-Street” movie? I am sure you ever did at least one of these things. So, these books or this movie send you back to the exchange markets past… Do you know, that in the early 70th floor and discretionary traders were the kings of financial trading. Their secret weapons were a sharp mind and insider knowledge to make high profits day in day out. Well, however… These days are gone forever.
Make Money Trading Forex
Do you want me to guess why you are here on this page? Of course because you are interested in currency trading, and because you want to make money trading Forex! Otherwise, I guess you wouldn’t be reading this article. Let me congratulate you – you’re on the right way. But surely you need some knowledge to make money trading!
Forex Trading Tools
Forex trading tools is the section of this site where the trader can find useful Forex tools for trading, such as Fibonacci calculator, Pivot Point Calculator, Woodie Calculator and Camarilla Calculator. Additional one is extra All-in-one calculator. These Forex tools have the extra trading help power and can ease the life of trader greatly. If the trader wants to calculate the Fibonacci retracement levels, then he should choose the Fibonacci calculator, and so on.
Metatrader 5
Metatrader 5, MT 5 for short has been released June 2010 and represents the actual industry standard for currency trading terminals. Metatrader 5 gives us trader the opportunity to trade not only currencies but also CFD, futures, metals and other financial instruments using one single trading terminal.
Metatrader 4
Metaquotes Software Corp. released the Metatrader 4 trading terminal July 2005. Within less than one year it became the most popular platform for currency trading, because MT 4 was opening new horizons no terminal has ever opened before.
Metatrader Forex Trading Platform
The Metatrader Trading Platform is a free-of-charge program, specially designed for online trading. While the early versions from Metatrader was designed for the foreign exchange market only, Metatrader 4 and Metatrader 5 are multi platforms which allows trading Forex, Futures, Equities and CFD’s using one single platform.
Automated Forex Trading vs. Discretionary Trading
This tutorial is created to show the difference between automated Forex trading and manual trading. The traders often hesitate to use the automated Forex trading and choose the discretionary Forex trading instead, but all can be found out when comparing one to another, so that’s why this tutorial is worth reading.
Automated Forex trading is the way of trading built on using special computer programs (automated Forex trading software) that have been created within the certain data schemes and backtested to prove the possibility to trade and give profits to traders. Programs for automated Forex trading are created and developed by experienced traders in order to help the other traders in their work that is sometimes too hard and requires efforts higher than human nature allows spending. Automated Forex trading is the best way of trading for those who appreciate their time highly and can’t spend all day long by the PC working on Forex. The software for such trading can be downloaded, bought or either created by trader himself thankfully to the special programming languages (like MetaQuotesLanguage).
Basics about Forex Economic Indicators
This tutorial is helpful for those traders who are interested to know about Forex economic indicators, as they are really helpful for understanding economic and financial data.
Forex economic indicators are pieces of economic and financial data, which have been published by different governmental or private agencies. These statistics are made public on the regularly scheduled basis, and also they help observers of the market to monitor the economy pulse. So, they are saintly followed nearly by everyone in the financial markets. Forex economic indicators have the great potential of generating the volume and moving market prices, one of the matters is the huge number of people reacting to the same information. While it may seem that the advanced degree in economics would be helpful to analyze and after that trade with more than enough information that Forex economic indicators contain, a few guidelines are really all that’s necessary in order to track, organize and make the decisions about the trading based on the data.
Basics about Forex Charts and Chart Reading
Basics about Forex Charts and Chart Reading
If the trader is going into the Forex Technical Analysis, then the word “Chart” is familiar to him. Trend is the friend, and chart is the friend to define the trend. Traders that care about the results of their trading use Forex Analysis and particularly charts, to watch the way the trend goes. This tutorial will guide the beginners through the Forex Chart types and Forex Chart reading.
Line Chart
Line Chart is a simple, but still a very powerful tool for trading. Its power lies in simplicity, because line chart provides easy to understand view over the closing price for some exact period of time. The prices are displayed on the side of the chart, and the dates are displayed in the bottom of the chat. Single line shows the closing price each given day.
Bar Chart
Bar Chart is the most popular chart for watching the price security. It displays the open, high, low and closing price of the security. Each vertical’s bar top shows the highest price traded by security during the period of time, the bar’s bottom represent the lowest price in it’s turn. Closing “tick” can be seen on the bar’s right side to define the last price traded by security during that period of time. If the opening prices are available, they are defined with a tick on the bar’s left side.
Candlestick Chart
Candlestick Charts for displaying the open, high, low and closing prices in the similar manner to a bar-chart, but in a format that extenuates the relation between the closing and opening prices. It’s just the new way of looking at prices, without involving some calculations. Each candlestick shows one period of data.
In order to get profits in the world of advancement and technologies, the trader has to be proficient, and reading, and what is even more important – understanding chart patterns and technical trading indicators. Below in this tutorial there are just some basic points to help the trader understand the Forex technical analysis and currency chart reading.
Price
Price is reflecting the actions and perceptions that have been taken by the participants of the market. It’s the urgency between sellers and buyers in the prices movement creating pit. So it means that all the fundamental factors are discounted in price quickly. So, studying the price charts, trader is able to see indirectly the market psychology and fundamental all in once – afterall, market is fully feed by two main emotions – Fear and Greed, and once the trader is able to understand it, then he begins to understand the market psychology and the way it relates to the chart patterns.
In the data window of the chart the trader can see the following:
O = Opening Price;
L = Lowest Price;
H = Highest Price;
C = Closing price;
Price bars are a linear representation of a time period. This lets the viewer see a graphical representation of a specific time frame activity summarized. The highest point of the bar shows the highest price achieved through the period of time, and the point that is the lowest in its turn shows the price that was the lowest through the same period. Bars that are called regular show a little dot on the left of the bar, which shows the opening price of the period, and the one from the right side, showing the closing price of that period.
The market usually displays some familiar moving price patterns. Once the pattern is established, it is the most possible course of future price action until the time that market changes. Trending and trend-less are two types of market that are important for the beginner to identify. Each type of market has two specific patterns which trader can also notice over time. Trending (steady prolonged price movements with less than 45 degree angle with sudden pauses, resting periods or profit taking) can be uptrends (higher highs and higher lows type) and downtrends (lower lows and higher highs). And trendless market type (erratic movements of price that often steep greater than 45 degree angle and can’t sustain so must reverse) can be divided to choppy (erratic pattern with higher highs and lower lows) and sideways (narrow pattern with lower highs and higher lows).
Uptrend and downtrend days can show excellent results of trading; choppy market creates stop outs usually and sideways can produce little in both directions.
Volume is easy to follow when you know four rules of following Volume:
- When prices are about to go up and volume is about to increase, prices will continue rising. Uptrend is confirmed.
- When prices are about to rise, but volume is about to decrease, the uptrend may be near its end.
- When prices are falling and volume is about to increase, prices will continue falling.
- When prices are falling and volume is about to decrease, the downtrend may be near its end.
These are the rules of Forex chart reading and understanding the Forex technical analysis, but trader should remember that despite of reading the tutorials, first times of currency chart reading should be performed only with the help broker.
Forex Analysis – Fundamental Analysis
Forex Analysis – Fundamental Analysis
Opposite the Forex technical analysis part, this Forex tutorial is created to show the way the major part of Forex Analysis – Forex fundamental analysis is held like, what are the advantages and importance of performing it and make a trader be little more familiar to this type of Forex Analysis – Forex fundamental analysis.
Two major parts of analyzing currency markets are technical analysis and fundamental analysis. One really great and clear difference between Forex fundamental analysis and Forex technical analysis is that first mainly studies the causes of market movements, while the other one is concentrating on the effect of market movements. The last one, Forex fundamental analysis, focuses on the economic and financial theories, developments of politics and determines the supply and demand forces.
Forex Analysis – Technical Analysis
Forex Analysis – Technical Analysis
This one of the Forex tutorials is directed to show the way the major part of Forex Analysis – Forex technical analysis is held like, what are the advantages and importance of performing it and make a trader be little more familiar to this type of Forex Analysis.
Two major parts of analyzing currency markets are technical analysis and fundamental analysis. The last one focuses on the economic and financial theories, developments of politics and determines the supply and demand forces. One really great and clear difference between Forex fundamental analysis and Forex technical analysis is that first mainly studies the causes of market movements, while the other one is concentrating on the effect of market movements.
Forex Trading Basics Part 2
Forex Trading Basics Part 2
This tutorial is continuing of the previous part of Forex trading basics tutorial. Here is some more information about currency trading basics.
The basic entry and exit rules of Forex market are that buying a currency is equal to taking a long position in it, and selling a currency is equal to selling short that currency.
Forex Trading Basics Part 1
Forex Trading Basics Part 1
This tutorial is directed to guiding the traders through the very important part of Forex trading. Currency trading basics is the MAIN THING that every and each trader needs to know even before he starts trading. Currency trading Basics is the key to successful trading and the core of knowledge that educated trader needs to hold.
Benefits of Forex Trading
Advantages and Benefits of Forex Trading
Forex benefits are what make the trading on the Forex so different from the trading on other financial markets and additionally so attractive in the eyes of trader. Remembering that Forex is the place of risk, still it stays the place of possibilities and has more advantages when compared to the other markets’ trading. This tutorial is directed on comparing, finding out and showing the Forex advantages and benefits that the Forex trading can give to a particular trader. If the trader has ever thought of Forex vs. Futures comparing, or if not, this tutorial will be helpful.
History of Forex Part 2
History of Forex Part 2
In year 1944, the world economy was devastated and exhausted by the two wasting wars, that left a scar on the currency trading too. The trade flows had almost stopped and the free movement of gold was nearly impossible. To restore the international economic system, something had to be done immediately, without hesitation. Almost all the countries realized that the world has changed; the war experience emphasized the importance of joint efforts and cooperation for getting good results.
As the continue, 45 countries gathered on a conference in Bretton Woods, Great Britain in 1944, to set up a system of rules, institutions and procedures to regulate the international monetary system. The purpose of the conference in Bretton Woods was to prevent the reoccurrence of the dreadful events like the Great Depression of the 1930 and to secure the world economy, additionally helping it to recover from the postwar crisis.
The results of this conference played the great role in Forex trading history, and they came with the following facts:
- Finally setting up of a fixed exchange rate system, linking the US dollar at the rate of 35$ per ounce of gold, while all other currencies were defined in relation to dollar. Thus, the role of the world leading currency shifted from pound sterling to dollar, and the international economy became dollar-centered (which remains to be truth till the present day, actually). Most international transactions began to be denominated in USD.
- Beginning of Foreign exchange as we know today. It became possible due to fact that world currencies started to be pegged against one another.
- Establishing the International Monetary Fund (IMF), the main regulating monetary institution in the world. IMF was designed to be the keeper of the rules and the main instrument of public international management. Its role is also to be an advisor on monetary policies for the countries of the world and to finance trade deficits.
- Creating the International Bank for Reconstruction and Development (IBRD), now the most important agency of the World Bank Group. IBRD focused on promotion of world trade and financing the post war reconstruction of Europe. Now it is charged with making loans for economic development purposes.
But after some time, the Bretton Woods system started showing some disadvantages. The world economy finally started recovering, which seemed the certain plus and advantage of the system. The volume of international trades flashily increased, and this led to the massive movements of currency. The fixed foreign exchange rates which were set up according to this system, quickly destabilized and became senseless in the new conditions. So strange, but the positive economic trend was not positive at all and resulted in the negative financial effect.
An attempt to stabilize the situation within the framework of the Bretton Woods system was made in 1971. It was called the Smithsonian Agreement and was held under the U.S. leadership. According to the Smithsonian Agreement, the dollar was devalued to the rate of 38$ per ounce of gold in an attempt to balance the world financial system. However, the problem with all this was the fact that dollar was no longer suitable for the role of the sole international currency. Thus, the efforts to develop a new system of international monetary management failed.
Eventually it all ended with the Bretton Woods system collapsed in 1971, resulting with the fact that dollar was no longer convertible into different goods. This inevitably initiated the rise of the floating exchange rate.
But the significance of the Bretton Woods’ page of Fx history for the world economy can’t be underappreciated. The time of this system was the time when the entire world financial system was rethought and reinvented to achieve results. The whole economic psychology was changed. The Bretton Woods system was one of the important steps to the growing globalization.
After all, the world got the new page in the Foreign exchange history and the floating exchange rate system as the monetary system that’s existing since 1970s till the present day. After abandoning the system of fixed exchange rate, the market forces (like supply and demand) were left free to regulate exchange rates basing on their supposed values. Within this monetary framework, there is no single international currency, but there are more than ten currencies which are called most traded (still US dollar being on the first place). The modern Forex market is the result of implementing floating exchange rate system in the 1970s, and since and thankful to that time Forex has developed into the one of the largest global markets. Of course, many factors played the part in this. Primarily, this is the development of technology and heavy use of computers and the Internet. The capital started moving without any borders. The possibility to make trading and do transactions even from a home computer appeared (this was the opening of the electrical part of Forex history). More with this, trading on Forex is done 24 hours without a stop, since the important Forex trading centers are located in all time zones, from Asia through Europe to America. When one time-zone trading session ends, the session in another time-zone starts.
In floating exchange rate system the rate of exchange is determined by the supply anddemand of the currency in the market. For example, the higher is the demand for a certain currency, let’s say, US dollar, the higher its value will be. If the demand for the currency decreases, its price decreases, too. The floating exchange rate is changing continuously, which allows the participants of the Forex market to buy currency for the lower price at one period of time and sell it at much higher price at another, thus gaining profit.
However, there is the reverse side of this phenomenon – the traders can buy currency expecting to sell it at a higher price, though, some factors may influence the market, and the price for this currency will decrease despite the prior expectations, and they will lose the profit. In fact, Forex market appears to be very sensitive and susceptible to the influence of various factors, in particular political, economic and even psychological.
Still, there have been many changes in the world monetary systems since 1970s till present. The most significant is the introduction of Euro as the single European currency in 2001, and since then it has become one of the most popular and most traded currencies.
In concluding of this whole Forex trading history tutorial, the history of Forex does not embrace a very large period of time. In fact, it can be referred to two last centuries, while the period when the modern Forex started forming actively refers to the 1970s only. So that means that in fact Forex is a rather “young” phenomenon. Three important events in the history of Forex can be defined: the Gold Standard, the Bretton Woods system and floating exchange system. However, it should be remembered that since Forex is regulated by market forces, its state is changing constantly. Every day can bring the events that would change the face of existing economic system and make history. So, the history of Forex is being created every day and even every hour!