Latest Forex Strategy Articles

Interest Rates and Volatility — correlation between interest rate gaps and volatility Volatility in the currency markets is influenced by a number of factors foremost among which is the risk perception of financial actors. Among those factors, nothing is as important as interest rates in determining the level of long–term volatility in the forex market. The bond market and currency prices Currencies are the basic building blocks of all economic activity. A military contractor, a mortgage borrower, and even gangsters evaluate their economic plans in terms of currencies. Consequently, the forex universe encompasses all the other fields of financial activity. Technical strategies based on crossovers In this article we will study the various kinds of crossovers and how to exploit, interpret and confirm them based on the interaction of indicators with the price and each other. The crossover strategy is popular and easy to use. Clustering Illusion — seeing non-random sequences in a string of random data Clustering Illusion is the tendency to see non-random sequences in a string of random data. It is especially dangerous for traders, because perceiving a non-random pattern in a random string of wins or losses may lead us to increase leverage or trade sizes. Gambler’s conceit It is not unusual to make spectacular profits with a highly leveraged account, just as it is not unusual to throw three heads in a row during a coin tossing competition. The sad fact is that those spectacular profits are highly likely to be wiped out.

Recent Articles on Forex Analysis

The Perils of Forex Backtesting — how to evaluate a technical forex strategy Backtesting of technical methods in light of past prices is the most popular testing strategy among technical traders. Forex price action — reading the language of the market Those with even a brief experience with charts know that price action on an ordinary day is highly unpredictable and volatile. In this extensive presentation we equip the reader with the knowledge needed to understand the language of the forex market. Alexander Elder Alexander Elder, M.D. is a native Russian who defected to the United States at the tender age of 23. He has since worked as a New York City psychiatrist, Columbia University professor, and expert stock trader. The power of fundamental analysis: George Soros and the Bank of England There are many traders who successfully used fundamental analysis to obtain great wealth, but the exploits of George Soros, and his Quantum Hedge Fund have made them legendary. A step-by-step guide to fundamental analysis of the currency market In this brief guide we will try to provide you with a step-by-step plan for analyzing the global economic environment, and deciding on which currency to buy or sell.

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