What is Forex Trading?
Forex Trading is the financial trading of different currencies from various countries against each other. You are in effect betting one currency will appreciate while the other will depreciate in value. In other words you are ALWAYS buying one and selling the other! Forex is an acronym of Foreign Exchange and synomous with term: currency trading.
- If you thought the Euro will go up in value and the US Dollar will go down in value then you would buy the EUR/USD.
- If on the other hand you thought the US Dollar will go up in value and the Euro will go down then you would sell the EUR/USD.
How to Know Which Currency to Buy and Which to Sell?
Our Forex Software speeds up the currency selection process by statistically comparing each major currency vs every other using multiple of our best trend tools and using different time frames. Our Currency Meter averages together 3 Trend Direction tools and 2 Trend INTENSITY ones giving you ONE CLEAR INDICATION of that currency's trend direction and intensity.
Underneath this histogram we show the Daily / Weekly / Monthly trends. When you have extreme weakness such as the NZD did today and its longer term trends are down you look to sell it vs the stronger US Dollar. (See example Forex Chart below!)
Disclaimer: Past Performance not indicative of Future Results.
Our Forex Software gives you many other Forex Indicators that will help you both spot trades and assist with ENTY & EXITS.
Hourly Moving Average - First we show you the Hourly chart's 20 period moving average which we find most professional traders use. It's not just used as major support & resistance but also as a FILTER. When price is over hourly MA (gray line in middle) you focus on buying and when underneath selling). Today price was clearly underneath it all day.
Previous Days's High & Low - Notice the dotted red line at .8183, this is yesterday's low and once broken is a KEY SIGN that price is likely to continue down.
Intelligent Trailing Stops - We also have intelligent trailing stops that use the real time momentum to tighten, many traders once they pick a currency pair and its direction use them for both ENTRY's and EXITS.
Fibonacci Profit Targets - We also HEAVILY USE and teach Fibonacci Profit targets which I have drawn on the swing from 3:30am till 8:30am and you can see on the next swing down it stops nearly to the pip at the 1.618 Fibonacci Profit Target!