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The FX Bootcamp Guide to Strategic and Tactical Forex Trading by Wayne McDonell

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PART THREE: SUMMARY

To recap, following are the key takeaways for Part Three:
• Speed is the study of the market.
• Speed is indicated by medium-term moving averages such as the 20/60, 21/55, or 34/89.
• Steep angle and wide separation indicate a fast-moving market.
• Momentum is the study of price.
• Momentum is indicated by short-term moving averages such as the 3/4, 5/8, or 8/13.
• Steep angle and wide separation indicate strong momentum of price action.
• Align your risk tolerance with the speed of the market and momentum of price.
• The trades that are most likely to yield a successful trade are trades that have speed and momentum aligned.
• A market at rest tends to stay at rest; a market in motion tends to stay in motion until bias has fundamentally changed.
• Bias is the majority opinion of all traders that are trading in the market.
• Opinion is shaped and reshaped constantly by all known information.
• This can be anything that directly or indirectly affects global money flow.
• The most common is economic data reports that are announced on a regular schedule.
• Such announcements can instantly change the value of a currency.
• Because economic reports are released around the world every trading day, traders should be aware when these announcements are scheduled to be released.
• Range is support and resistance of price.
• Start by identifying support and resistance. This will be the range you are trading in at the moment.
• Match your trading with the speed of the ...

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