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ATTENTION: Who's going to bail you out when your job goes bust and you're left with your own financial crisis? It's times like these you need a real proven Method to carve out a nice, meaty chunk of the Two Trillion Dollar Market...

...Now You Can Legally Copy His Exact Formula And Cash In On The Huge Forex Swings With Less Time Than It takes To Make A Cup Of Coffee!

Figure 1. The anatomy of a pin bar This section explains what the pin bar is. Following sections explain how it may be traded. Generally examples are only given for pin bars pointing one way. The same concepts can be applied to pin bars pointing the other way (just reverse the concepts!). Trading is a probabilities game. There is always risk of loss and the trade going ‘the wrong way’ after the pin bar has formed. All we can expect to do is to tip the odds in our favour. When good pin bars are traded then a trader can tip the odds in their favour. Some trades will result in losses; such losses will occur with any trader from time to time. (Even a good pin bar setup may result in a loss!) Looking at Figure 1 we can see what a completed pin bar looks like. See that this Pinocchio bar (which is abbreviated to ‘pin bar’) is poking his long nose outwards and is telling you a lie (an untruth) about where the price is going. The name is based on the old European story about the wooden boy, Pinocchio, whose nose grew longer every time he told a lie. The bigger the lie the bigger the nose! For us this means that we want a nice long nose when we see a pin bar. We trade in the opposite direction to where the nose is pointing (so the pin bar in Figure 1 indicates that traders should be taking short positions while trading EURUSD). The high of the bars on either side of the pin are the ‘eyes’ for the pin bar. Note that the open and close of the pin must be within the left eye. For a nose pointing up, this means that if the high of the eye is roughly at the 1.2175 level (as shown in Figure 1), then the open and close of the pin bar must be below this level of 1.2175 (as is the case here). If the open/close is outside of this level then it is not a real pin bar. The pin bar means that the price is going to move in the opposite direction to where the nose is pointing. In Figure 1 the nose is pointing up so the trader should expect prices to move down. A pin bar must: • have open/close within the first eye, • protrude from surrounding prices (‘stick out’ from surrounding prices); it cannot be an inside bar. A good pin bar has: • a long nose (and a long nose relative to the open/close/low), • a nose protruding a long way from the prices around it (it ‘sticks out’), • the open / close both near one end of the bar.
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Forex trading basics

Posted by Jalak Lenteng On 9:54 PM

Forex Market Basics

The Foreign Exchange market (also referred to as the Forex, FX market, "Cash" Forex or Spot Forex market ) is the largest financial market in the world, with more than $1.5 trillion changing hands every day — 30 times larger than the combined volume of all U.S. equity markets. Another major feature of the Forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world, starting each day in Sydney, then Tokyo, London and New York. At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.

What to trade in Forex Market?

In the forex market, currency trading is always done in currency pairs, such as EUR/USD or GBP/USD. Accordingly, all trades result in the simultaneous buying of one currency and the selling of another. The base currency is the "basis" for the buy or the sell. It is useful to consider the currency pair as an instrument, which can be bought or sold.

Understanding Forex quote

  • Base currency: The first currency in the pair.
  • Counter Currency: The second currency in the pair. Also known as the terms currency.

The US dollar is the centerpiece of the Forex market and is normally considered the ’base’ currency for quotes. This includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. For example, a quote of USD/CAD 1.1302 means that one U.S. dollar is equal to 1.1302 Canadian dollar.

BID and ASK Prices

When trading forex you will often see a two-sided quote, consisting of a ’bid’ and ’ask’. The ’bid’ is the price at which you can sell the base currency (at the same time buying the counter currency). The ’ask’ is the price at which you can buy the base currency (at the same time selling the counter currency).

Commission-free, but with spreads

Most Forex brokers offer commission-free Forex trading. Spread - The difference between the bid and ask price of a currency. Normally 3-5 pips on the Majors.

Rollover - What happens to my open positions at the end of the trading day?

Process whereby the settlement of a deal is rolled forward to another value date. The cost of this process is based on the interest rate differential of the two currencies. Most brokers will automatically roll over your open positions, allowing you to hold a position for an indefinite period of time.

Leverage & Margin

The leverage available in forex trading is one of main attractions for many traders. Leveraged trading, or trading on margin, simply means that you are not required to put up the full value of the position. Forex brokers provide more leverage than stocks or futures. In forex trading, the amount of leverage available can be up to 400 times the value of your account.

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