Candlestick Trading Blog
Forex traders make their money by trading currency pairs. They use both fundamental and technical analysis. Technical analysis applies to price patterns of one foreign currency as measured by another. But, fundamental analysis needs to cover measures of the economy, balance of payments, and monetary policy of each of the nations whose currencies traders are trading. It is necessary to be aware of the goings on in both nations whose currencies one trades as Forex profits come from changes in the relative value of one currency such as the US dollar versus another currency such as the Yen, Euro, British Pound, Swiss franc, Australian dollar or Canadian dollar. In currency trading those using objective and easy to read Candlestick charts will find this technical chart analysis tool effective in appraising market sentiment when trading currency pairs.
Trading currency pairs including the Euro has been volatile of late as the European debt crisis continues. Traders following the fundamentals of the Euro are waiting for an upcoming meeting of European finance ministers for clues as to how soon and how thoroughly the EU will address the sovereign debt problems of the so called PIIGS group (Portugal, Ireland, Italy, Greece, and Spain). The Euro has popped up and down with each news release, or so it seems. The other day the German lower house of parliament, the Bundestag, voted in favor of measures to support a bailout of Greece and other nations that are in danger of insolvency. In trading a currency such as the Euro it is important to have as clear a picture as possible of the fundamentals of the European economy and monetary policy. But, in trading currency pairs there is always another currency. So, traders follow US employment statistics or pronouncements and actions of Japanese or Swiss central banks, depending upon which foreign currencies one is trading against the Euro. As always the fundamentals are quickly discounted by the market. Thus currency traders pay close to price patterns with Candlestick analysis . Just as with trading stocks , trading futures , trading options , or trading commodities , Candlestick pattern formations provide insight into the sense and direction of the market when trading currency pairs. When trading currency pairs in Forex trading profit often comes from picking the right currency pair to trade and requires the clear sense of the Forex market that Candlestick patterns provide. By keeping an eye on the Forex news traders have a clear sense of where there is market volatility , where market trends are going, and when a market reversal might be ready to take place. Being in the right place at the right time is important to profits in Forex or any trading. Gaining and maintaining a clear view of market sentiment with technical analysis tools like Japanese Candlestick charts is then necessary to profit from price movement when trading currency pairs. Whether one is trading one major currency versus the other (majors are the US dollar, Canadian dollar, Australian dollar, British Pound, Yen, Euro, and Swiss franc) or trading a major versus a minor currency such as the Ruble, Rupee, or Real, objective and easy to read Candlestick signals coupled with Candlestick trading tactics can make the difference between profit and loss in an active market. Online Stock Market Reviews presented live via the internet by Stephen Bigalow |
|
 |
|
 |
|
 |
|
 |
---------------------------------------------------------------------
<< Blog Home