What is Forex? | We have 469 free forex articles/answers for you.
Latest Articles
Forex Trading HoursForeign Exchange (FOREX) Trading is the buying and selling of international currencies. Because the trading parties can come from every corner of the globe, there are various time differences that need to be taken into consideration when you engage...
Online Forex Trading: Easy Access to Making Higher Profits?
Log onto to the internet and you will easily find many ways to make money. You'll find business programs, internet marketing strategies, internet income opportunities, bond trading, stock trading, affiliate programs and all other kinds of online...
What Is Forex Trade?
Forex is usually termed as FX in the common language abbreviations used for the Forex market. This is the biggest monetary business today. The business has its base on the trading of free money. Actually, the money is sold and purchased freely. The...
Does Your Forex Strategy Include The Fibonacci Two-Step?
Fibonacci can be a very valuable addition to the tools in your Forex strategy, even if you are a reasonably new trader. Experiment with the guidelines below and learn to do the Fibonacci two-step:
Fibonacci levels indicate more often than not how far price is going to go before it stalls and pulls back. It also provides a number of levels where price can pull back or retrace before moving on in the direction of the trend.
The 4 most common retracement levels are (figures rounded off) 1. 38%, 2. 50%, 3. 62%, and 4. 79%.
The two most common extension levels are 1.27% and 1.62%.
Using the Fibonacci tool that comes with most charting packages, simply drag the tool from the most recent swing high/low to the previous swing/high or low and take special note of the 50% retracement level.
In a nutshell, the Fibonacci Two-Step means you set an entry order to be pulled in if and when price touches the Fib50% retracement level, and you set your target at the Fib1.27% extension level.
However, for these trades to be high probability with minimal risk a couple quick calculations are necessary.
What is your stop value? 25-30 pips? If it’s more can your equity cover it if you lose the trade? For many traders 25-30 pips is a reasonable stop.
So before entering the trade, measure the distance between the Fib50% retracement level, your possible entry point, and the Fib79% retracement or even the 100% level. If it is more than 25-30 pips, pass on the trade. The risk is too great. If price pulls back further than the Fib50% level even all the way back to the last swing high/low, you will be in trouble.
However, if the Fib79% or 100% level are within 25-30 pips of your entry at Fib50%, you have a possible trade.
Now calculate how many pips from Fib50% to the extension at Fib127% - this
will be your profit ratio. Supposing your stop is set at 25 pips, perhaps somewhere between the Fib79% retracement level and the swing point, and your target at the Fib127% extension is 36 pips, that’s a good risk/reward ratio! You are risking 25 pips to get 36.
It is often advisable to set your target 3 or 4 pips above the Fib127% level as sometimes price doesn’t quite make it before it pulls back.
Use this strategy in line with your other indicators and trade in the direction of the trend for minimal risk.
Why is this strategy so successful? Because it’s not too ambitious. Price will often pull back to the Fib50% level and no further. It will often go to the Fib127 and no further. So using these two levels puts one on middle ground with a higher chance of getting taken into the trade with the target successfully met.
So if you are looking to improve your Forex strategy, remember the Fibonacci Two-Step – In at Fib50 – Out at Fib127 – and dance all the way to the bank.
Michael A. Jones is a writer and webmaster with over 10 years experience who also trades the forex regularly. See an illustrated example of the Fibonacci Two-Step on this page:
http://www.vitalstop.com/Forex/forex-strategy-fibonacci-two-step.html
Click here for his advice for absolute beginners:
http://www.vitalstop.com/Forex/learn-to-trade-the-forex.html
Michael has also put together a list of key free resources which he finds invaluable:
http://www.vitalstop.com/Forex/forex-directory-free-resources.html
Written By: Michael A. Jones
 Reuters | WORLD FOREX: Dollar Surrenders Some Gains To Euro, UK Pound Wall Street Journal TORONTO (Dow Jones)--The dollar is higher against the euro and the UK pound Tuesday but has ceded some of its gains as ... FOREX-Yen slips on BOJ story, sterling stays heavy Dollar Rises After Forex Traders Flock to Safer Assets FOREX-Yen firm, euro and pound hurt by fiscal worries |
 FXstreet.com The Forex Market | Forex - Dollar up vs. most rivals on poor German, UK data Forex Pros Forex Pros – The US dollar rose against most other major currencies on Wednesday, after official data showed that German exports and British manufacturing ... Forex: US Dollar mostly lower today as EUR/USD hovers near 1.3600 Forex: GBP/JPY falls and trades at 134.67 FOREX: Euro Losing Ground to the Dollar; EUR/USD, FXE |
WORLD FOREX: Dollar Trims Gains In Shift To Riskier Assets Wall Street Journal TORONTO (Dow Jones)--Investors first pushed the dollar higher Tuesday as concerns about euro-zone debt flared, ... Buy foreign currency as Australian data supports |
 Forex District | Forex - Euro rises vs. dollar, hitting daily high at 1.3625 Forex Pros Forex Pros – The euro rose against the US dollar during European midday trade on Wednesday, hitting a daily high at 1.3625 in the wake of mixed economic ... Forex - Euro slips vs. dollar after mixed German data Forex - EUR/USD bounces after US consumer confidence data |
 Earthtimes (press release) | WORLD FOREX: Dollar At 2-Week High Vs Yen On Asia Stock Rises MarketWatch TOKYO (MarketWatch) -- The dollar rose to a two-week-high against the yen Monday in Asia, as higher regional shares bolstered ... FOREX-Euro gives up gains, yen steadies after fall FOREX-Yen rises on Japan exporters; sterling falters Forex Daily Analysis |
 Reuters | FOREX-Euro gains vs dollar, yen as Greece worries ease Reuters LONDON, March 8 (Reuters) - The euro rose against the dollar and the yen on Monday on easing concerns over Greek debt, ... FOREX-Dollar rises vs yen as US jobs data boosts optimism Forex - Dollar down against major rivals on Greece hopes WORLD FOREX: Euro Down Before US-Greece Meeting; Sterling Falls |
WORLD FOREX: UK Pound Slumps On Weak UK Economic Data Wall Street Journal The pound dropped to its lowest level in a week, shedding nearly 0.5% against the dollar by morning New York trading. "The bottom line is the UK economy has ... WORLD FOREX: Euro, Sterling Slip As Dollar Rises |
 Globe and Mail | FOREX-Dollar rises vs yen as US jobs data boosts optimism Reuters NEW YORK, March 5 (Reuters) - The dollar soared against the yen on Friday after a government report showed US employers cut fewer jobs ... WORLD FOREX: Euro Falls Vs Dollar After RBA Says Europe A Risk WORLD FOREX: Euro Gains On Pledge Of Further Greek Cuts Dollar loses steam on Greece hopes |
 Forex Flash | WORLD FOREX: Dollar Up Vs Yen, Euro Little-Changed Post Jobs Wall Street Journal NEW YORK (Dow Jones)--The dollar rose against the yen, but the euro recovered much of its initial loss against the ... FOREX-Yen dips, dollar supported ahead of payrolls Forex trends: dollar gains some ground across the board, sliding vs yen Dollar Gains Versus Yen as US Loses Fewer Jobs Than Forecast |
WORLD FOREX: Euro Ticks Up Vs Yen On Japan Importer Buying MarketWatch Against the dollar, the unit traded at $1.3602 from $1.3601. "Overall currency moves were very limited" with share markets almost unchanged and a lack of ... |
