10. What Moves the Markets: Basic Fundamental and Technical Trading Strategies

It seems that a major trend in Forex is to move away from the "dismal science" (economic fundamentals) to mathematics (technical). If you don't need calculators and the ability to quantify the movements, the reasoning goes, then don't bother. I think this is incorrect and misdirecting new traders. Debate between "tech" and "funds" is as old as trading and I'm not about to end it here. I do believe that certain currency pairs have a predisposition to act in technical patterns more than fundamental patterns, and vice versa. A rule of thumb is: Highly traded G7 pairs such as the EUR/USD and USD/JPY tend to move technically, while exotics tend to demonstrate strong fundamental ...

Get Forex Revolution: An Insider's Guide to the Real World of Foreign Exchange Trading now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.