Bond Spreads In Forex

Came across a really interesting article by Kathy Lien, Chief Strategist at FXCM about Bond Spreads and Interest and how they affect the Forex Market. Some of this is common sense, but is always good to be reiterated and gone over from time to time. Including the idea that investors will tend to seek higher yields on interest rates and thusly buy currencies with higher rates than the currency they are holding. Read the story »

Forex Broker Reviews and Comparisons

Hello there everyone, found a few sites that will help you find a Forex Broker that’s right for you. Even if you have a broker already, you can use these sites to review your current one or find a better one. Personally, I think I might try out a couple of MT4 (MetaTrader4) compatable brokers from these lists by opening up mini accounts for $250 or less and test out some indicators that I want to try live, but don’t have the nerve (or stomach) to try with big lots. I don’t see anything too risky about this new approach, the initial investments I can easily part with if the markets don’t go my way. Let me know if this is too foolhearty, even if I trade mini lots. just know testing out these expert advisers out, they will be 3:1 win to loss, and losses always smaller than gains, historically. I’m interested in seeing what the spreads will be like, alot of these brokers keep that under wraps unless you ask. Read the story »

Fibonacci Levels in Forex

Using Fibonacci Levels is the cornerstone of many successful forex traders’ systems and it is based on centuries old mathematical techniques that can be applied to almost everything in nature. The numerous Forex trading systems based on this “Fibonacci numbers sequence” result in billions of dollars in profit annually by traders worldwide, and indeed, after trading Forex for a few years, I have come to use them myself every chance I get.

I’ve learned that the ratio between numbers in the Fibonacci sequence that is significant, rather than the actual numbers in the sequence.

The definition of this Fibonacci sequence is basically formed by a series of numbers where each number is the sum of the two preceding numbers; for example: 1, 1, 2, 3, 5, 8, 13.

Quite simply, the a pair will move up, stop at a point, move back down to another point, “pivot” off of that price and the process continues forever. These “oscillations” in the price of currency pairs are clear indicators of support and resistance. Support occurs when a pair begins to be bought after a move down, and resistance occurs when a pair begins to be sold after a move up. Now, admittedly, these moves occur many times per second, but we should be concerned with support and resistance on longer time frames. Fibonacci levels, when drawn correctly, can be excellent indicators (on almost any time frame) of where a price might go next, Read the story »