September 2008
Beginner
252 pages
5h 53m
English
Content preview from The FX Bootcamp Guide to Strategic and Tactical Forex Trading
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TREND ANALYSIS
Trend is like a prevailing trade wind blowing across the vast ocean. Trend is steady. As sailing a ship in the direction of the prevailing wind is easier than against, trading with the trend is also easier and often more profitable. Another way of looking at trend is like the current in a river. It’s easier to swim downstream with the current than upstream against it. Go with the flow.
FIGURE 10.10 Set Your Breakout Target
Source: FX Bootcamp, LLC (www.fxbootcamp.com)
DealBook® 360 screen capture printed by permission. © 2008 by Global Forex Trading, Ada MI USA
Trend Spotting
Start your market analysis with speed. How is the market moving today? Is it range bound or is it trending? Here is an important trade hint: A market will maintain its speed until something fundamentally changes market bias. So if it is trending, it will likely stay trending.
To measure trend, use a long-term moving average. For instance, you can use moving averages such as:
• 100
• 200
• 233
• 800
Whatever seems to work for you is fine. The chart layout at FX Bootcamp uses the 200 EMA. Based on the angle of the 200 EMA you will be able to define the strength of the trend:
• A steep angle will indicate a powerful trend.
• A shallow angle will indicate a weak trend.
Technically Fundamental
The use of a long-term moving average, such as the 200 EMA, is a function of technical ...
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I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.