Forex Investment and Currency Trading

A system is a self-contained way to make trades. Systems generate specific buy and sell signals. Many FOREX trading systems are available either from broker/dealers or from third-party vendors. They are intended to be complete in and of themselves, although many traders still use them in conjunction with other trading techniques.
Systems typically show outstanding results over historic data, or they would not sell. But the historic data is very often curve fit. This means that the system was developed to fit the data and not the other way around. if that data related to some specific types of markets, such [...]

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Technical traders have found a home in Forex. Some speculate that because of market efficacies and number of participants trading the major currencies, currencies move in very technical patterns. In addition, in a market where trades can last less than a minute, fundamentals might not give a trader the edge. Therefore those who understand these patterns will have an advantage.
Determining the Trend
The first task in technical trading is to determine the overall pattern of the market’s broader movements – its trend. Although the market might appear to be zigzagging, its true movement will be revealed. A trend can be established [...]

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CAD/JPY –The cross got no traction whatsoever from previous day’s small “hammer” reversal signal and peeling sharply lower last Friday, the market has set a new low and is very close to the low end of the longer term bear target range of 70-73. Below long term trend support at 85.91, this cross is poised to remain much better offered on rallies. Major support below the 70 level at 68.63 (Dec 1999 low) and 57.85 (all time low form 1995). Minor resistance stands at 76.85/77.05 and while above 80.10 relieves immediate bear pressure, stronger resistance now between 84.70/85 should cap. [...]

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EUR/CAD – A very mixed picture on the daily chart at the end of last week, with Wednesday’s bullish outside range session countered by previous day’s bearish “doji” signal and the risk of something similar forming last Friday. These latter two candles suggest a lot of indecision in the market at or near the highs for this year (March peak at 1.6321). Wednesday’s strongly positive session should be enough to keep the cross supported in the medium term but the struggle to sustain gains on a closing basis – or crack on through the low 1.63 area – in the [...]

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Moving Average
In its simplest form, the moving average is just the average of historical prices, indicating potential momentum. This illustrates the historical trend by “smoothing” volatility. The trader can choose a time frame according to his or her preference. This longer the time frame, the smoother and less sensitive to price change the moving average becomes. And the shorter the time frame the more sensitive to price change and therefore subject to whipsaws.

Moving Average Convergence / Divergence (MACD)
This is a popular oscillator. It is created by defining two weighted moving averages, a 12 day and 26 day exponential moving average, [...]

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