Real Forex Trading pt.3

Realizing that we need to explain what triggers a big movement in the Forex graphs, this page will supply some suggestions regarding avenues that need exploring:

1. The Fundamental Data. Has some news just been released? A useful website that informs its reader of up and coming news is Daily FX. All expected news broadcasts are found in their calender section.

2. Pre-empting Fundamental Data. Prices tend to fluctuate rapidly immediately before fundamental data is released.

3. Technical Analytical tools. In day trading, these tools can be useful, even vital. The art is to isolate which tools dominate a specific currency pair, you will know this because they will provide an indicator just before a large movement. Investopedia is a useful website to be aware of because it provides lots of useful information about technical tools and forex trading.

4. The Stock Market. The stock market is a real-time indicator of the economic climate of a country and as a consequence any radical move in the relevant stock markets of a currency pair will influence its currency value.

5. The Time of Day. Different quanties of people trade at different times of the day and this directly affects the prices’ ability to move.

6. The Time of Year. I really do not know much about this, but there is evidence that it does affect movements.

Back To of Creating A Forex Trading Strategy