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Kathleen Brooks on Forex: A simple approach to trading foreign exchange using fundamental and technical analysis

Book Description

A simple approach to successful forex trading Many foreign exchange traders use either fundamental analysis or technical analysis and they're often considered to be mutually exclusive approaches. But FX does not have to be traded that way - fusing the two types of analysis will improve your research and, more importantly, your trading results. This is how Kathleen Brooks trades foreign exchange and she has found it to be extremely successful. In Kathleen Brooks on Forex she reveals the secrets of this approach, demonstrating the indicators she uses, and showing through detailed examples how she plans and executes profitable trades. At the heart of Kathleen's trading philosophy is the principle that fundamental factors - politics, economics and societal changes - cause currency prices to move in the medium to long term (and sometimes in the strangest ways), but throughout the day the price movements are based upon technical factors. Building a trading plan around the two sets of factors works for her and by reading about how she does her pre-trade market analysis (the homework), forms a trading plan and puts the plan into action, you will see how to apply this principle in practice in your own trading. The book is divided into four sections: - Part A - using fundamental indicators to gain an impression of the market - Part B - using technical indicators to refine your trading plan - Part C - fusing fundamental and technical analysis to select trades - Part D - revealing Kathleen's risk management techniques Kathleen's description of her method, and ideas on how you can use it too, will appeal to anyone who wants to learn more about how to trade foreign exchange as well as those already in the market looking for a fresh approach. Blissfully free of rhetoric, written in an accessible personal style and punctuated with anecdotes from Kathleen's unique career in the markets, this is a new and refreshing look at foreign exchange.

Table of Contents

  1. Cover
  2. Publishing details
  3. Acknowledgements
  4. About the author
  5. Preface
    1. What this book covers
  6. Introduction
  7. PART A – Fundamental Analysis
    1. Introduction
    2. Trading using economic data
      1. Use of an economic calendar
      2. Consensus
    3. Economic indicators
      1. 1. Labour market surveys
      2. 2. Purchasing Managers Index (PMI) and Institute of Supply Management (ISM) surveys
      3. 3. Inflation data
      4. 4. Quarterly GDP
      5. How currencies are affected by the various economic data
    4. Interest rates and central banks
      1. The major central banks
      2. What central banks do
      3. Central banks in action
      4. Unconventional central banking
      5. Interest rate differentials
      6. Central bank intervention
    5. Political risks
      1. The concept of safe havens and risky assets
    6. Fundamental analysis wrap-up
  8. PART B – Technical Analysis
    1. Introduction
    2. A potted history
      1. The dinner party explanation
    3. How to use TA
    4. Charts
    5. Trading with trends
      1. Uptrend
      2. Downtrend
      3. Confirming the trend
      4. During a trend
      5. When a trend ends
      6. What happens when markets don’t trend?
    6. Technical analysis wrap-up
  9. PART C – The Fusion Philosophy
    1. Introduction
    2. How the philosophy works
    3. Trading examples
      1. Case Study 1: USDCAD
      2. Case Study 2: USDJPY
      3. Case Study 3: GBPUSD
      4. Case Study 4: AUD
      5. Case Study 5: Gold
      6. Case Study 6: EURUSD
      7. Case Study 7: EURGBP
    4. Fusion philosophy wrap-up
  10. PART D – Risk Management
    1. Introduction
    2. Top five risk management tips
    3. Trading examples
      1. Case Study 1: EURUSD
      2. Case study 2: trailing stop loss
      3. Case study 3: managing emotions
    4. Risk management wrap-up
  11. Conclusion
    1. My top ten tips for trading
    2. Appendix
    3. Investing and Trading books from Harriman House