What is Forex? | We have 469 free forex articles/answers for you.
Latest Articles
Brief Summary Of Forex TradingThe foreign exchange market is widely known as "Forex". Here brokerage firms and banks are linked over an electronic network. This network enables them to convert the currencies of countries all over the world. It is the largest and the chief liquid...
Forex Trading - A Simple Explanation For A Complex Trading Strategy
In todays world of the internet, anything is possible. People today download music, buy and sell products, download movies, run an online business, etc. You can do anything online with todays resources, and that includes forex trading. Forex is a...
FOREX Trading With Managed Accounts
FOREX is seen in more and more portfolioss since the currency exchange realm has opened up to the small investor. However, working 9 to 5 doesn’t always leave room to trade the market on a consistent basis. Aspiring traders who still work day...
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 Weakens Slightly On Euro After Trade Data Wall Street Journal NEW YORK (Dow Jones)--The dollar weakened slightly against the euro Thursday, after US data painted a mixed picture ... FOREX-Dollar falls vs yen and euro after trade data FOREX-Dollar gains vs yen after US retail sales data Forex trends: recovering vs dollar and yen, euro drops vs pound |
WORLD FOREX: Dollar Gains Ground After Strong US Retail Sales Wall Street Journal "The data was dollar positive," said Jacob Oubina, a currency strategist at Forex.com in Bedminster, NJ "It's going to raise [US's] first quarter GDP up ... |
FOREX-Dollar little changed vs majors in volatile trade Reuters ... market analyst at Easy Forex in Chicago. "If anything, traders appear to have a preference to sell the euro on rallies." The dollar JPY= was little ... |
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-Euro, sterling pressured by fiscal concerns FOREX-Yen firm, euro and pound hurt by fiscal worries Forex: Several Indicators That Will Move Currencies |
 RTE.ie | WORLD FOREX: Yen Down Vs Dollar On Hatoyama Remarks MarketWatch TOKYO (MarketWatch) -- The yen fell against the dollar and euro in Asia Friday as Japanese Prime Minister Yukio Hatoyama's comments ... Daily Forex Overview |
 FXstreet.com The Forex Market | Forex - Dollar mixed vs. rivals after jobs, trade gap data Forex Pros Forex Pros – The US dollar was mixed against most other major currencies on Thursday, following a disappointing report on initial US jobless claims and ... Forex: US Dollar mostly lower today as EUR/USD hovers near 1.3600 Forex - Dollar mixed vs. rivals as US jobs data eyed Forex - Dollar climbs against yen, nearing 2-week high |
 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 ... WORLD FOREX:Dollar Hits 2 1/2-Month Low Vs Yen; US Yields Down FOREX-Yen dips, dollar supported ahead of payrolls Forex trends: dollar gains some ground across the board, sliding vs yen |
 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: Dollar Ends Broadly Lower; Canada, Australia Lead WORLD FOREX: Euro Falls Vs Dollar After RBA Says Europe A Risk FOREX-Euro steady vs dollar; US jobs data awaited |
 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-Yen slips on BOJ story, sterling stays heavy FOREX-Yen down on concern ahead of BOJ, pound slips GBP and JPY Under Selling Pressure |
 FXstreet.com The Forex Market | Forex: Dollar dips on weaker than expected jobless claims NASDAQ FXstreet.com (Barcelona) - The Dollar has been damaged by a weaker than expected decline on weekly claims, and the Greenback has ticked down against its ... FOREX: Euro May Not Have the Juice; EUR/USD, FXE Forex: USD/JPY eases below 91.00 after consumer sentiment data Forex: USD/JPY retreat contained by 90.15 support |
