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Can You Sum Up Your Trading System?
Here's the skinny on how my simple system works...
All professional Forex traders pay very close attention to key support and resistance levels. This is the foundation of my currency trading system. My system is built around the proven concept of "commercial support and resistance tendencies".
Let me explain...
Volatile currency price fluctuations are usually initiated by external forces such as global geo-political events, world news, monetary policies, economic reports, etc. As currency traders, we are not concerned about what caused the movement. We are traders - not economists. We are only interested in profiting from the aftermath volatility as a result of these global fundamental events.
When a market reaches certain low levels, they are at a support level (support being a level that attracts buyers simply on lower prices). It could be that the market reached those levels on several occasions before and bounced off them. Markets that reach support levels will often rise as buyers are re-attracted to those price points. Then the herd instinct kicks in and price rises.
If a market rises, and a price level is rejected by buyers because the sellers are asking too much, the price will begin to move downwards from that level of resistance. Other sellers join in, the crowd factor eventuates, and price swoons. Support and resistance levels are extremely dynamic in the forex market – meaning that they are subject to change from day to day. These levels must be recalibrated from day to day..
| • | How to assess a currency for profitability |
| • | Learn how to get the GOOD pip spreads and where |
| • | Learn which currencies to trade and when to avoid others |
| • | Discover which currencies are actually ready to make a move. |
