The focus of this article is a new study by Caporale and Plastun. They suggest that there’s an edge to be had in forex markets by trading gaps. However, they could not find an edge in other assets. Following are some of the findings from the research paper and then some concerns we have about […]
With the fear and uncertainty of a possible Brexit, GBP/USD has been one of the worst performing currency pairs this year, falling as low as 1.38 in late February. However, recent weeks has seen the currency stage a comeback, taking the market back to the important 1.4600 level as traders bet the pessimism was overdone.
As I predicted on Monday, the Federal Reserve kept interest rates on hold yesterday and this saw the US dollar drop against most of its major trading partners. The central bank cited low inflation and uncertainty abroad as the main reason to keep rates on hold and this has pushed market expectations for the first […]
USDX is the US Dollar index that is used as an indicator by traders who wish to deal in gold currencies, futures, commodities and bonds. It’s one of several indicators which help Forex traders to assess the relative strength or weakness of the US dollar against another currency.
People often want to know whether forex trading is profitable. They see a strategy online promising 1000% returns and millions of dollars in profits and wonder whether they too can become successful forex traders. On the flip side, though, they will also have heard the stories of those traders who have lost money and in […]
It looks like it will be another busy week for traders this week, with plenty of economic releases and central bank announcements. Traders will be watching the Bank of Japan this week as well as inflation data out of the UK and central bank minutes from the BOE, RBA and Fed. Traders will also be […]
Trading and cricket It is not altogether uncommon for people to try and compare professions with sport. With trading this is equally true and I have heard many times people compare trading to American football, baseball, golf or even tennis. In many ways, baseball is a good comparison; The film Moneyball with Brad Pitt is an […]
US stock markets moved up nicely yesterday for the second day in a row, after comments from Russian President Vladimir Putin downplayed the extent of military action in Ukraine and US housing data boosted stock market optimism. Putin said “we don’t want to split Ukraine up, we don’t need that,’’ and later, “Don’t believe those who […]
MetaTrader 4 is the trading platform of choice for thousands of forex traders because it allows charting, back-testing, the coding of expert advisors and lots more. It’s a true all-in-one package that can be downloaded free from most brokers. Expert Advisors are simply trading systems that use MT4’s own built in programming language and using […]
Predicting the direction of forex markets, particularly on a short term basis, is no easy task. For longer durations, however, it is a good idea to see a list of economic indicators as these show the fundamental reasons why currencies move. Technical indicators work too, but they are best combined with the fundamentals. Below is […]