Forex Made Easy

<h1>Preface xiii</h1><h1>Acknowledgments xv</h1><h1>1 What Is the FOREX? 1</h1><h5>Introduction 1</h5><h5>FOREX Defined 12</h5><h5>A Brief History of the FOREX 13</h5><h5>Free-Floating FOREX Market 13</h5><h5>Major FOREX Participants 14</h5><h1>2 More FOREX 15</h1><h5>Currency Pairs 15</h5><h5>Recommended Currency Pairs 16</h5><h5>Why Trade the FOREX 19</h5><h5>Volume in the FOREX 19</h5><h5>Analyzing the FOREX 23</h5><h5>How Profits Are Made 23</h5><h5>The FOREX as a Two-Way Market 25</h5><h1>3 Forecasting the Market 29</h1><h5>Fundamental Analysis 29</h5><h5>Technical Analysis 32</h5><h5>Fundamental versus Technical Analysis 33</h5><h1>4 Currency Options 35</h1><h5>Currency Options Introduction 35</h5><h5>Options Pricing 36</h5><h5>Advantages of Trading Options 37</h5><h5>European and American Options 37</h5><h5>Exotic Options 38</h5><h5>Lock in Profits 40</h5><h5>Accelerate Your Profits 41</h5><h1>5 Creating a Workstation for Trading 43</h1><h5>Workstation Location 43</h5><h5>Trading Computer and Accessories 44</h5><h5>Internet Connection 45</h5><h5>Trading Software Programs 45<h5>Continuing Education 48</h5><h1>6 Fundamentals of Trading 51</h1><h5>Introduction to Trading Theory 52</h5><h5>Trends Defined 53</h5><h5>Trend Cycles 53</h5><h5>High-Probability Trading 55</h5><h5>Sideways, Nontrend Strategy: Wait for Strong Trends 55</h5><h5>Uptrend Trading Strategy: But at Dip Bottoms 55</h5><h5>Downtrend Trading Strategy: Sell at Rally Tops 58</h5><h5>Symmetrical Triangle 58</h5><h5>Ascending Triangle: A Bullish Continuation Pattern 63</h5><h5>Descending Triangle 65</h5><h5>The Falling Broadening Formation 67</h5><h5>Support Breakdown or Resistance Breakout 67</h5><h5>The Double Bottom 68</h5><h5>Head and Shoulders (Crown) 70</h5><h1>7 Economic Fundamentals 73</h1><h5>Introduction 73</h5><h5>Economic Indicators 74</h5><h5>Inflation Indicators 76</h5><h5>Employment Indicators 78</h5><h5>Consumer Spending Indicators 78</h5><h5>Leading Indicators 79</h5><h1>8 Introduction to Technical Analysis 81</h1><h5>Technical Analysis Defined 81</h5><h5>Technical Analysis Assumptions 82</h5><h5>Bar and Candlestick Charts 83</h5><h5>Technical Analysis Terms 86</h5><h5>Market Patterns: Uptrends, Downtrends,and Sideways Trends 87</h5><h5>Support and Resistance 95</h5><h5>Moving Averages 95</h5><h1>9 Advanced Trading Charts and Indicators 103</h1><h5>Tools for Technical Analysis 104</h5><h5>Bollinger Bands 104</h5><h5>Directional Movement Index (DMI) 107</h5><h5>Stochastic Indicator 107</h5><h5>Moving Averages (Simple, Weighted, and Exponential) 110</h5><h5>Moving Average Convergence/Divergence (MAC/D) 116</h5><h5>Momentum 119</h5><h5>Relative Strength Index (RSI) 119</h5><h5>Rate of Change (ROC) 122</h5><h5>Volume 122</h5><h1>10 Fibonacci Numerical Sequences and Elliot Waves 125</h1><h5>Introduction 125</h5><h5>Fibonacci Rectangles and Shell Spirals 127</h5><h5>Fibonacci Retracements 128</h5><h5>Fibonacci Extensions 128</h5><h5>Fibonacci Time 129</h5><h5>Fibonacci Circles 130</h5><h5>Elliot Waves 135</h5><h1>11 Money Management Principles 139</h1><h5>Trade with Sufficient Capital 140</h5><h5>Exercise Discipline 140</h5><h5>Be Patient and Persistent 141</h5><h5>Employ Risk-to-Reward Ratios 141</h5><h5>Follow Trading Rules 143</h5><h5>Accept Losses 144</h5><h5>Always, Always Use Stops 144</h5><h5>When In Doubt, Stay Out 145</h5><h5>Never Overleverage Your Account 145</h5><h5>Make Realistic Goals That Can Be Achieved within Reason 146</h5><h5>Always Trade with Money You Can Afford to Lose 147</h5><h5>Protecting Your Profits 147</h5><h5>Keep a Trading Log 147</h5><h1>12 Six Steps to Success 149</h1><h5>Identify Current Long- and Short-Term Trendsand Which Trend to Trade 149</h5><h5>Check News and Market Announcements 150</h5><h5>Identify Support an