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255 Pip Move! Can Trading The USDJPY Be As Easy As ABC

https://youtu.be/RYfd6CJwBxw

https://youtu.be/RYfd6CJwBxw

255 Pip Move! Can Trading The USDJPY Be As Easy As ABC

The USDJPY pair have been heavily correlated with the Dow Jones 30 index over the last few months as the US and China trade deal has rattled on.
However, it was only around ten months ago that this pair reached a high point of 112.40 before dropping to the 105.00 level. Big swings in a currency pair like this can catch institutions, investors, and traders completely offside and wondering where future direction might be. In situations such as this, it is obvious that many traders will have been caught out and lost money through stop losses or closing out positions that have gone against them and where they have suffered heavy losses. And when we see big swings like this in price action, it is difficult for traders to know how to value a currency pair’s exchange rate. Because traders at an institutional level tend to buy yen in times of high risk in the market, we can only presume that the yen is losing ground to the dollar-based on the fact that phase one of the US and China trade deal is complete.

Example A

Let’s turn to example A, which is an hourly chart of the USDJPY pair. We can see that since the 6th of January 2020, price action has been almost glued to two simple moving averages; the black 13 MA and the green 17 MA.
At position A, which is a key 108.00 level, we can see that price action strongly moved lower than the moving averages; however, price action was curtailed, probably because of the previous low at this level. Traders often use previous levels as targets because they are often areas of support and resistance, and especially at key-round-number levels.


Certainly, there was a lot of volatility during these few hours before price action then moves up and becomes almost inseparable from the moving averages to the key 109.00 level, where again we see some volatility at this position before price action again moves while almost sticking to those moving averages, and apart from a small dip the price action, continues all the way up to the key 110.00 area at position C.
Price action then moves underneath the moving averages, again sticking very closely to them, while drifting lower, as traders wonder where the next big move will be on this pair.
In times of uncertainty in the market, please remember that nobody knows where the price action will go to. And if in doubt, it is not unusual for the market to fall back on some very basic trading methodology: if price action is above the moving averages, which have crossed over, and are moving in an upward direction, they buy, and if the moving averages have crossed over and are moving in a downward direction they sell — keeping in mind the importance of those key round number levels.

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Forex Academy Education For Absolute Beginners Session Five – Becoming A Professional Trader

 

 

Forex.Academy Education For Absolute Beginners – Session Five

 

Thank you for joining Forex.Academy Education For Absolute Beginners – Session Five.
In session three, we demonstrated that by using technical analysis in forex trading will greatly stack the odds in your favour. And in session four, we covered the importance of how the study of a country’s economy, in the form of fundamental analysis, is also a key aspect that professional traders observe.


Another area which is of great importance is timing, both the time of day and timing when it comes to executing your trades. I am sure you will have been to a party that started at 8 p.m, and began fairly lively enough, and then picked up a little more an or so later as more people arrived, and by 11 p.m. when even more guests arrive, the party was in full flight. Forex trading also has it’s lively, or volatile times during the day, especially during the morning session of each of the respective countries’ time zones. For example, European institutions, who are the big guns and who mostly are the cause of the markets to move about, arrive at their desks at around 7 AM CET, followed by London at 7 AM GMT, and then the US markets open at 7 AM EST and they are followed by Chicago a couple of hours later, and then the Asian markets at around 11 PM GMT, and please allow for seasonal clock changes. The point is, the more people trading simultaneously, the more money in the system, and the likelihood for more volatility.
The market can also become extremely volatile around the time of economic data release of each country, as we discussed in section 4. Therefore new traders are advised to be receptive when it comes to trading around these times due to huge volatility and the possibility of huge movements or swings in the price of a currency pair.


The really cool thing about forex trading is that there are a number of tools that you traders can use to automatically stop trades at a chosen point to mitigate against losses. But the best friend for a new trader is a demo account, which allows novice traders to learn how to trade in real market conditions, but without risking their own funds. The bottom line is if you cannot trade and make money consistently on a demo account, you will not be able to make money trading on a real money account. Here at Forex.Academy, we recommend a good educational grounding, which we provide free of charge, and then we recommend practice, practice, practice.

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Forex Academy Education For Absolute Beginners Session Four – Becoming A Professional Trader

https://youtu.be/VB-iU3eVFm8

https://youtu.be/VB-iU3eVFm8

Forex.Academy Education For Absolute Beginners – Session Four

In session 3 we showed you the power of using technical analysis and how that enables traders to stack the odds in their favour when it comes to trading forex. Simply by adding a few technical indicators to your charts,, you will be able to identify recurring chart patterns and trends and make your trading decisions based on what these tools tell you about a currency pair, just like professional traders do all over the world.


However, if you are thinking about running off and opening a trading account and adding a couple of technical tools to your screens and start trading, you will be making the same mistake as many other novice traders. Because, although technical analysis is the backbone of currency trading, there are also other components that you must learn about before you dive in and risk your hard-earned cash.
The next key component which you must learn about is fundamental analysis. This is the study of a country’s financial status based on the money it has coming into its coffers in the form of taxes and its overall expenditure, including debt.

All of this will show whether a country is doing well, OK and as the market is expecting it to perform, or if it is doing badly. This, in turn, will affect the value of the currency of that country. And if we go back to session one, where we learned that all currencies are traded in pairs, new traders must understand that a country’s wealth is constantly changing and, therefore, the value of its currency – based on another country’s currency – will continually fluctuate.
What’s more, countries regularly release economic data regarding the status of their country, and this will include information such as the amount of people that are unemployed, the amount of income that a country generates, which is called it’s gross domestic product or GDP, and also other factors including the amount of spending power of its population and the country’s interest rates and future plans help the country in times of slowdowns, or to help slow down an economy if the national debt becomes too high.


And so it is essential to follow an economic calendar, which is freely available and to ensure that trading positions are not opened directly when such data is released, because the market can become volatile at these times.
Forex.Academy, Is a complete library on fundamental analysis, and do not worry, because you do not need to be an economist, but we will show you the absolute basic requirements that you should know in this ar

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Forex Videos

Forex Academy Education For Absolute Beginners Session Three – Becoming A Professional Trader

https://youtu.be/R-5dYUd_5uE

https://youtu.be/R-5dYUd_5uE

Forex.Academy Education For Absolute Beginners – Session Three

 

Thank you for joining us for session 3 of forex trading for absolute beginners. Forex Academy has all your forex trading educational needs from complete novice through to professional trader, and it’s all free to our followers!

In session 1 and 2 we mentioned that Forex trading is very similar to gambling when trading with no understanding of how the market works, and where the odds can be stacked in your favor and where Forex trading becomes a profession when novice traders take the time to learn the ropes before opening a live trading account and diving in.
We also mentioned that Forex is mostly traded by using Technical Analysis, where traders use tools they drag onto their screen charts in order to visually see when markets are going up or down, and trade accordingly.

Example A


In Example A, we can see a line graph chart of the exchange rate of the British pound, with the black line showing the price moving up and down against the US dollar, AKA GBP:USD. On the face of it, it looks extremely erratic.

Example B

Let’s take a closer look in example B, where we have drawn some arrows showing the pair moving up and down, but it would be almost impossible to know when to trade.

Example C


But in example C, where we have changed the line graph for coloured bars, which are known as candlesticks, we can clearly see that the red candles help us to see when the price is moving down, and the green ones help us to identify with the price is moving up, such as in example D.

Example D

Example E


In example, E, we have added our first technical analysis indicator, which is called a stochastic oscillator. This tool tells traders when a pair may have gone too high or too low, which are also known as periods of overbought and oversold. It is clear to see that when the redline of the stochastic has moved to a high point and then crossed over the green, and they are both moving down, that the price of the pair moves lower, and when the green has crossed over the red after they have moved to a low, then the currency pair moves higher.
Here are just two simple tools that traders use to stack the odds in their favour.
But none of this would be any use at all without another aspect of trading, which we will discuss in session 4.

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Forex Videos

Forex Academy Education For Absolute Beginners Session Two – Becoming A Professional Trader

https://youtu.be/T5CoQYsexYc

https://youtu.be/T5CoQYsexYc

Forex.Academy Education For Absolute Beginners – Session Two

Thank you for joining us for session 2 of forex trading for absolute beginners. Forex Academy is
your one-stop-shop for all your educational needs when it comes to trading currencies.
In session one, we alluded to the fact that trading is like gambling. However, when you walk into a casino, I think we can all agree that the odds are pretty much stacked in the houses’ favor. And also, gambling on football match outcomes and where people also bet on corners, throw-ins, and the next goal scorer. Again the bettings shops are the ones making the millions because, in gambling, the odds are completely stacked in favor of the betting companies.


The reason why forex trading is often seen as gambling is that a high percentage of new retail customers lose all of their money within the first six months of opening a trading account. In fact, it is over 70%. The majority of these individuals do little or no research and simply have a ‘punt’ on a trade as if they were in a casino or betting on a football match outcome. And of course, subsequently, go on to lose all of their money. New retail traders forget one simple thing: currency trading is a profession. The money markets are run by professional people; many of them are extremely well educated with finance-related degrees.


However, there is still plenty of room for retail traders to consistently make money in Forex, no matter what level of education, as long as they take the time to learn about the various aspects which go into trading. Those that do become traders will have taken the time to educate themselves about the Forex market, and those that cannot be bothered to learn will remain as gamblers.

Let’s give you an example of how retail forex traders regularly make money. If you saw a limousine driving down the street with somebody throwing money out of the window, the next thing you would see would be hundreds of people following that limousine and picking up all the cash.


Simply put, institutional traders move the markets because of the huge amounts they trade with. But they leave a trail of cash for retail traders to pick up in the form of trends that appear on our computer screens. These trends are the limousine driving down the street leaving money for everyone else to pick up
Because these trends are the basis of patterns that recur time after time on traders’ screens. Professional traders and retail traders alike are now becoming more dependent on using chart based tools to decipher these patterns, which, when followed correctly, will stack the odds are in their favor by up to 70%.

This type of trading is called technical analysis. And over 90% of the time, forex trading is done by technical analysis. That’s right, billions of dollars exchange hands, often affecting countries’ economies, and it is largely based on screen patterns! Only when new traders learn all that there is to know about trading with technical analysis, only then they will become professional traders and not gamblers.

Here at Forex Academy, our educational courses have been put together by ex institutional traders and market professionals, and we will take you through the knowledge process, step by step, to help you on your way to becoming a Professional Trader. So take your time and enjoy the ride.

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Forex Videos

Forex Academy Education For Absolute Beginners Session One – Becoming A Professional Trader

https://youtu.be/llluFYdKTWc

https://youtu.be/llluFYdKTWc

Forex.Academy Education For Absolute Beginners – Session One

Hello, and welcome to Forex Academy, your one-stop shop to complete education in foreign exchange currency trading, which is also known as Forex or FX.


The foreign exchange market is a global network of banks, financial institutions, governments, and retail traders who take advantage of the 5 trillion dollars that are traded every day in the foreign exchange market.

Many of the larger institutions buy and sell, or exchange currencies – which are always traded in pairs – and many other financial firms and also retail traders simply trade based on whether a currency pair is going up or down. If they place a buy trade and a pair goes up, they make money, and if they place a sell trade and the pair goes down, they also make money. And that is what happens most of the time, currency pairs go up and down against each other continually. And so traders bide their time and pick their moments to take on a trade.


Now while this may sound very daunting, if you think about it, you have probably been on holiday to a different country and spent some time shopping around online or at travel agents looking for the best currency exchange rate to give you more buying power on your holiday. In which case congratulations, you have already been trading currencies. I expect that a lot of you may have also enjoyed gambling at some time, perhaps at the roulette wheel in a casino, or playing cards such as Black Jack, and maybe you got lucky and made a little bit of money, however, typically the odds are stacked against you, and it’s a fact that the House always wins in the end.

But, what if you could go to a casino where the odds were stacked in your favor, of course, you would be very interested in that opportunity? Welcome to currency trading because if you take the time and effort to learn how to trade correctly, you can stack the odds in your favor when you trade currencies.

OK, the thought of spending a lot of time learning a new specialist subject might not seem like a lot of hard work, but if you think about it you will not strip down a car engine without first taking a mechanics course, and you wouldn’t take out a horse’s appendix without first going on a comprehensive vet’s course. And currency trading is no different. There is a lot to learn. However, the more you learn, the better trader you will become.

And here at Forex Academy, we have a wealth of education to pass on to you so that you can stack the odds in your favor and learn to trade currencies like a professional.