FOREX Introduction For Beginners

Why Should I Learn Forex?

If you hear from anyone that making money in Forex is easy, do not believe. It is a myth. The truth is – being profitable in Forex requires a lot of work, dedication, learn, practice, more than a good discipline, sharp knowledge of money management and understanding of the psychology of the currency market. Learn Forex before you start Trading, because to Earn you should Learn Forex.

If you are ready to Learn Forex / start Forex Trading, then this blog is for you. Here you will learn all details about forex / forex trading,

1) You will learn what is Forex and how to trade forex.
2) You will learn forex strategy / forex trading technique / forex trick.
3) You will learn how to draw forex trendline.
4) You will learn how to determine support and resistance.
5) You will learn how to use forex chart / forex indicator for entry & exit in forex market.
6) You will learn about risk management & money management.
7) You will learn how to calculate forex profit / losses and MORE.

Learn Forex: What Is It And How Does It Work? -

The currency (foreign exchange) market is the largest and oldest financial market in the world. It is also called the foreign exchange market, or "FOREX" or "FX" market for short. It is the biggest and most liquid market in the world with daily average turnover of US$1.9 trillion, and it is traded mainly through the 24 hour-a-day inter-bank currency market - the primary market for currencies.

Foreign Exchange simply means the buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for those of another. The currencies of the world are on a floating exchange rate, and are always traded in pairs.

There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency.

The other 95% is trading for profit, or what you call speculation. Investors frequently trade on information they believe to be superior and relevant, when in fact it is not and is fully discounted by the market.

Unlike the futures and stock markets, trading of currencies is not centralized on an exchange. Forex literally follows the sun around the world. Trading moves from major banking centers of the U.S. to Australia and New Zealand, to the Far East, to Europe and finally back to the U.S.

Currency Symbol / Currency Pair

EUR/USD = Euro / US Dollar

GBP/USD = Pounds Sterling/ US Dollar

USD/JPY = US Dollar / Japanese Yen

USD/CHF = US Dollar / Swiss Franc

USD/CAD = US Dollar / Canadian Dollar

AUD/USD = Australian Dollar / US Dollar

NZD/USD = New Zealand Dollar / US Dollar

Etc.

In excess of 85 percent of all daily transactions involve trading of the major currencies - Australian Dollar, British Pound, Canadian Dollar, Japanese Yen, Swiss Franc, and the U.S. Dollar.

Currencies are traded in pairs, meaning that you are really trading one currency for another. A simple way to understand this is to consider what you do when you go on foreign vacations. If you are an USA, and you plan to travel to another country, say Canada, then you might take say $10,000 USD to the bank to change it for Canadian dollars. Let’s say the exchange rate is 1.4000, then for your $10,000 USD they would give you $14,000 CAD. Now let’s say you didn’t spend the money and upon coming home you decide to change it back to USD currency. Now let’s say the exchange rate is 1.3700 (a change of 300 pips that could happen in a week), so your $14,000 CAD would convert back to $10,218.97 US. Therefore you just made $218.97, a 2.19% increase in funds.

Reading a FOREX quote may seem a bit confusing at first. However, it's really quite simple, when you see Forex quotes you will actually see two numbers. The first number is called the bid and the second number is called the offer/ask. If we use the USD/JPY as example 115.37/115.40 the first number 115.37 is the bid price and is the price traders are prepared to buy USD against the JPY. The second number 115.40 is the offer price and is the price traders are prepared to sell the USD against the JPY.

Here in USD/JPY the currency listed first (USD) is the base currency and & the value of the base currency is always 1. A quote of USD/JPY 115 means that one U.S. dollar is equal to 115 Japanese yen. When this currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote increases from 115 to 117, it indicate dollar is stronger because it will now buy more yen than before.

What Next

Well now we have a basic understanding of how Forex market works what next? Now you are going to decide best way to trade the Forex market. The most common approaches are Forex fundamental analysis and Forex technical analysis.

Forex Fundamental analysis: Usually everyday, and often more than once a day, the currency pair will be moving along slowly (sideways movement, consolidation) and then all of a sudden it JUMPS! It very quickly moves up ten or more pips, usually in just a minute, and often continues to move strongly for another hour or so. This is due to the release of a “Fundamental Announcement”, and of course any experienced trader should understand that they usually create a market movement.

Forex Technical Analysis: It is technique to learn Forex market using chart and indicator to predict the future price of a security.

WHAT YOU NEED

**BROKER:

1: A broker that provide good platform to trade Forex. MARKETIVA provide very good platform for Forex trading and also give $5 free to open an account.

2: If you are ready to deposit at least $100 then ForexYard is best because they provide 100% bonus on first deposit upto $300.

Deposit $100, receive free $100 and start trading with $200

Deposit $200, receive free $200 and start trading with $400

Deposit $300, receive free $300 and start trading with $600

3: You can try Plus500 they provide $20 free with No Deposit required.

**Learn Forex Money Management and Risk Analysis:

However, it is common that one afraid of being involved in Forex market because of high risk in this trading field. Although every capital market involves certain level of risk, the risk of loss in foreign currency trading market can be extensive. It would be wise to learn about the potential risk (and managing it) if you wish to trade in Forex market.

Learn Forex Today and Stop Losing! Logic is Simple "Learn Forex Earn Profit"

Level Trading 123 MT4 FOREX Indicator

Download

Level Trading 123.mq4

HP Extrapolator MT4 FOREX Indicator

Prediction algorithm:
The indicator integrates two methods of predicting:

Method 1:

1. Specify the length equal to 3 SMA SMA and shifts in the past at 1 bar. With such a long, shifted SMA does not exist only for the last bar (Bar = 0), because he must value the next future price Close [-1].
2. We expect the frequency bandwidth SMA. We equate this frequency to the frequency of the filter Hodrick-Prescott. We find lambda.
3. We expect the value Hodrick-Prescott filter on the last bar of HP [0] and assume that the SMA [0] with an unknown Close [-1] yields the same value.
4. Find Close [-1] = 3 * HP [0] - Close [0] - Close [1]
5. Increases the length of SMA to 5. Repeat all the calculations and find Close [-2] = 5 * HP [0] - Close [-1] - Close [0] - Close [1] - Close [two]. And so on until the calculated specified number of future prices FutBars.

Method 2:

1. SMA specify the length equal to 2 * FutBars +1 and shifts the SMA in the past to FutBars
2. We expect the frequency bandwidth SMA. We equate this frequency to the frequency of the filter Hodrick-Prescott. We find lambda.
3. We expect the values of Hodrick-Prescott filter on the last FutBars bars and assume that the SMA will behave the same way when new prices.
4. Find Close [-1] = (2 * FutBars +1) * HP [FutBars-1] - Sum (Close [i], i = 0 .. 2 * FutBars-1), Close [-2] = (2 * FutBars +1) * HP [FutBars-2] - Sum (Close [i], i =- 1 .. 2 * FutBars-2), etc.
In Forex - display the following input data:
Method - method of prediction
LastBar - number of the last bar to verify the predictions suschestvuyaschih prices (LastBar> = 0)
PastBars - the number of previous bars for which would be calculated by Hodrick-Prescott filter (the more the better, or at least, PastBars> 2 * FutBars)
FutBars - the number of predicted future values
LED red constructs predicted values.
The second method has a tendency to more accurately predict, but often has large emissions of the first predicted prices. The method can improve the prediction by finding the FIR filter with frequency response is closer to that Hodrick-Prescott filter. For example, instead of the SMA, you can try Hanning, Blackman, Kaiser and other filters with constant delay.

Download

HP Extrapolator.mq4

TRO SupResHHLL MT4 FOREX Indicator

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TRO SupResHHLL.mq4

Yuraz-Zhunko EMA MT4 FOREX Indicator

Download

Yuraz-Zhunko EMA.tpl

Forex Chart By Global-view.com

Global-View.com Chart Gallery
04/30/2010
21:03	GMT		2yr	bp	10yr	bp	DJIA	11021	-146
USDX	81.83	-23	0.96	-4	3.66	-7	S&P	1187	-20
USD vs.							NAS	2466	-46
EUR	1.3313	70	0.77	-2	3.02	-4	DAX	6136	-9
GBP	1.5311	31	1.13	-8	3.85	-10	FTSE	5553	-65
CHF	1.0761	61	0.45	-2	1.83	-3	SMI	6617	0
JPY	93.95	13	0.18	1	1.29	0	NIK	11057	133
CAD	1.0157	107	1.74	-5	3.66	0	TSE	12242	165
AUD	0.9257	29	4.94	0	5.74	0	ASX	4807	22
NZD	0.7271	31					HSI	21109	330
CNY	6.8245	24					SSEC	2871	3
EUR vs.			GBP vs.				CHF vs.
JPY	125.08	49	JPY	143.85	49		JPY	87.31	37
GBP	86.95	63	CHF	164.76	127		Gold	1178.5	12.01
CHF	1.4326	5					WTI	86.10	0.49

Forex Calendar For This week

FOREX CALENDAR
Time		Country	Title	Cons	Last
03/05/10 12:30		US	Mar Core PCE mm	0.00%	0.30%
03/05/10 12:30		US	Mar Per Inc	0.30%	0.00%
03/05/10 14:00		US	Apr MFG PMI	59.00	59.6
03/05/10 14:00		US	Mar Construction	-0.40%	-1.30%
03/05/10 18:30		CN	Apr PMI NBS	n/a	55.1
			TUESDAY
04/05/10 0:00		JA	Holiday	n/a	n/a
04/05/10 3:30		AU	RBA (4.25%)	0.25	unch
04/05/10 8:30		UK	Apr MFG PMI	57.4	57.2
04/05/10 9:00		EZ	Mar PPI mm	0.70%	0.10%
04/05/10 9:00		EZ	Mar PPI yy	0.90%	-0.50%
04/05/10 14:00		US	Mar Pnd Homes	3.00%	8.20%
04/05/10 14:00		US	Mar Factory Ords	0.10%	0.60%
04/05/10 20:30		US	API Energy	n/a	n/a
			WEDNESDAY
05/05/10 0:00		JA	Holiday	n/a	n/a
05/05/10 7:58		EZ	Apr SVC PMI	55.5	54.1
05/05/10 9:00		EZ	Mar Retail Sls mm	0.20%	-0.60%
05/05/10 9:00		EZ	Mar Retail Sls yy	-0.50%	-1.10%
05/05/10 11:00		US	WK Mortgage Stats	n/a	n/a
05/05/10 12:15		US	Apr ADP Jobs k	n/a	-23
05/05/10 14:00		US	Apr SVC PMI	56.3	55.4
05/05/10 14:30		US	EIA Crude mn	n/a	1.9
05/05/10 14:30		US	EIA Distillate mn	n/a	2.9
05/05/10 14:30		US	EIA Gasoline mn	n/a	-1.2
05/05/10 14:30		US	EIA Cap Util	n/a	89.00%
			THURSDAY
06/05/10 0:30		AU	Retail Trade 1Q	n/a	1.10%
06/05/10 0:30		AU	Mar Retail Sales	n/a	-1.40%
06/05/10 0:30		AU	Mar Trade A$bln	n/a	-1.924
06/05/10 7:15		CH	Apr CPI mm	0.70%	0.10%
06/05/10 7:15		CH	Apr CPI yy	1.30%	1.40%
06/05/10 8:30		UK	Apr SVC PMI	57	56.5
06/05/10 10:00		DE	Mar Ind Ord mm	1.20%	0.00%
06/05/10 11:45		EZ	ECB Rates (1.00%)	unch	unch
06/05/10 12:30		EZ	ECB Webcast	n/a	n/a
06/05/10 12:30		US	1Q Productivity	2.50%	6.90%
06/05/10 14:00		CA	Apr Ivey PMI	n/a	57.8

Daily Forex Forecast and Trend Analysis

EURUSD Forecast:
The EURUSD was indecisive yesterday. Price attempted to push higher, slipped above 1.3267 area, topped at 1.3277 but still unable to consistently move above 1.3267 so far, keep the bearish scenario intact. The bias remains neutral in nearest term. However there might be other attempts to break above that area today. Consistent move above 1.3267 could change the intra-day bias into a bullish bias testing 1.3330 – 1.3400 region. Although remains a major bias, bearish pressure is limited so far and we need a clear break below 1.3200 area to continue further bearish momentum re-testing 1.3100 region.

GBPUSD Forecast:
The GBPUSD had a significant bullish momentum yesterday, topped at 1.5340 and closed at 1.5316. As you can see on my h4 chart below, I have made adjustment to the range area. The lower line is no longer at 1.5200, but 1.5128. Overall in medium term of view, we are still in consolidation phase and need a break above 1.5520 to continue the major bullish scenario. Immediate resistance at 1.5390. Break above that area should trigger further bullish momentum testing 1.5465 region before testing 1.5520. Initial support at 1.5290 followed by 1.5213.

USDJPY Forecast:
The USDJPY was indecisive yesterday, made a Doji on daily chart. The bias remains neutral in nearest term. The major outlook remains bullish. As long as price stay above 93.75, we may continue to have upside pressure testing 94.70 region. Break below 93.75 could trigger further bearish pressure testing 93.00. On the upside we need a clear break above 94.70 to continue the bullish scenario towards 95.50.

USDCHF Forecast
The USDCHF was indecisive yesterday. The bias remains neutral in nearest term but the false breakout scenario still potential as price so far able to stay below 1.0888. Immediate support at 1.0760/50 area. Break below that area could trigger further bearish momentum targeting 1.0700 – 1.0680 region. On the upside, we still need a clear break above 1.0888 to continue the bullish scenario towards 1.1000 region.

EURJPY Forecast
The EURJPY was indecisive yesterday. On daily chart below we can see that price still able to stay inside the bullish channel as the lower line still does a good job preventing further bearish pressure and keep the major bullish scenario intact. The bias remains neutral in nearest term as intra-day bias direction remains unclear. Immediate resistance at 125.35. Break above that area should trigger further bullish momentum testing 126.30 region. Initial support at 123.50. Break below that area could be serious threat to the bullish outlook.

GBPJPY Forecast
The GBPJPY continue its bullish momentum yesterday, topped at 144.34 and closed at 144.02. The bias is bullish in nearest term targeting 145.95 area especially if price able to break above 144.90 area today. Immediate support at 143.10. Break below that area could trigger further bearish momentum testing 142.00 region and diminish the bullish outlook.

AUDUSD Forecast
As you can see on daily chart below, the AUDUSD slipped above the triangle indicating potential bullish scenario. However we need a consistent move above the triangle to confirm the bullish bias. I will pay attention to 0.9345 region today. Break above that area confirms my bullish outlook targeting 0.9381 – 0.9404 region. Immediate support at 0.9268 (current low). Break below that area and a movement back inside the triangle could cancel the bullish scenario in nearest term testing 0.9220 area but overall the main trend remains to the upside.

EUR-USD Technical Analysis - 01 May 2010

Reaching the peak level of 1.3329, the EUR-USD giving temporary scare to the short-term bearish traders because it moved passed the ideal position at 1.3258. As for now currently the pair seems to go down to correct itself. There are two possibilities can happen here where it could go all the way down to 1.3258 level or making U turn upside to 1.3329 to form the M shape chart formation. But this is not our concern for now as we are going to look at next week market movement.

This technical analysis for the EUR-USD pair will be for next week, based on technical indicators position.

Daily Time Frame:
MACD = Down (Maintain short-term bearish trend)
Stochastic = Up (Caused of the temporary upside correction)
Bollinger Band Position = Bottom (Maintain short-term bearish position)

Weekly Time Frame:
MACD = Down (Maintain Intermediate-term bearish trend)
Stochastic = Down (Initiate Continuation Intermediate-term bearish trend)
Bollinger Band Position = Bottom (Maintain Intermediate-term bearish trend)

Monthly Time Frame
MACD = Down (Maintain Long-term bearish trend)
Stochastic = Down (Maintain Long-term bearish trend)
Bollinger Band Position = Between middle and bottom line (Premature bearish movement)

Using technical indicators direction and position analysis above, we can summarize that the EUR-USD market direction favors downtrend again. The long-term target is at 1.2640 based on previous historical low.

Forex Blog Will Be Updated From Today

I have decided to start blogging on forex and its related terminology keeping in view its benefits and returns to the Forex users...Today i will be posting some of the articles on Forex that i have not updated till now.I have taken this pragmatic decision to help my friends who are all involved in Forex.