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Forex Secrets. Delusion No1. Forex Currency Rate and Economic Factors Impact on Exchange Rate

By admin on Thursday, 5th November 2009

The concept intraweek, the promotion of intraday quotes and currency fluctuations in foreign exchange by the country's economic situation improved or deteriorated in the jurisdiction of the illusion. But in reality, even in a genuine exchange of news is higher than the original estimate, foreign exchange quotes up / down movement of the probability of a 50/50 basis.
This argument is absolutely important. Once the working of the exchange rate foreign exchange foreign exchange trader game differential (foreign exchange on the up / down movement), the following is to failure, profits were not in place:
Foreign Exchange on the pricing mechanism (in the X-point where you complete the market analysis, for example)
Factors imparting growth / decline in exchange rates (up / down from the X point).
Therefore, foreign exchange ratesfactors in understanding the effect of adding points in the rate (booksellers) and as a monetary incentive foreign exchange market, traders must have to buy or sell a given currency on different knowledge.
Therefore, these forces?
Student Exchange proposed a factor in price formation may be responsible for the interpretation, and from there fluctuations:
Foreign exchange rate between the demand and given the (money) supply and demand balance of the property.
Any violation of this balance (for example, if the message is issued with the officer variance estimation), a new demand on the supply of a balanced outcome, the search for other foreign exchange rates. Weak demand resulted in high demand led to a decline in currency exchange rates the growth of the latter. This situation persists, foreign exchange to purchase / sell to balance the needs of another level or at another point.
Turning to B Williams ( "Trading Chaos 2" Chapter 1 "The market is what you have to consider this issue"):
Every global market, is committed to the distribution or sharing a limited number of things … between those who want more of it all. Market impact of the discovery and determine the exact price? Potential buyers / sellers of power in absolute balance.
The previous problem is easy to solve the stock, futures, bonds, foreign exchange and options markets, whether it is either through public auction or by the computer to install. Spot market transactions that, on the floor, any you and me, even disequilibrium test.
With this at the truth – the truth is – we are ready with information in some simple but important conclusion is that through market allocation and enjoyment, no doubt, accept. "
Thomas Denmark, more concise "technical analysis – a new science":
"Price movement is affected by supply and demand. If in short supply, there is a price and vice-recovery and vice versa, if there is a price decline. All the economists do not agree with these fundamental principles.
Therefore, the foreign exchange market, the role of fundamental analysis is obvious.
As the novel found that the students adhere to walk from one book to another place, from the following explanation and recommended adoption of the country's basic economic data to consider in the foreign exchange market, successfully, that is. Follow the monitoring of economic conditions, the reflection factor:
In the conditions of economic conditions (GDP, trade and balance of payments current account, industrial production index dynamic knowledge is also true of most of these indicators – faster economic and monetary price growth);
Exchange, through the arithmetic average of the situation and the stock market dynamics. E. coli Bay: 0. Growth of 3% per day, the U.S. index that is, today's 30 leading U.S. companies a number of actions is determined by DJU representatives of 0. 3% more expensive. For a similar, DAX30 is the main German index, included in the top 30 the company's stock price.
Of the country's interest rates, as higher interest rates, investors are willing to invest in economic and monetary strength, at the most.
Inflation rate (higher interest rates, the fastest rise in interest rates the National Bank). Under this assumption, the consumer price index is a key factor.
Money supply growth in the domestic market, a fact that causes inflation, and thus lead to higher interest rates.
Country's gold and foreign currency reserve assets.
Changes related to dynamics: international balance of payments, trade balance, government budget, gross domestic product (GDP), etc.
Power of Trade and Industry (Industrial production, industrial orders, capacity utilization Group Office, retail, etc.)
Construction Statistics (construction spending, new home sales, housing construction, building permits, etc.)
Labor Statistics (unemployment rate, new employment opportunities, etc.)
Research Institute (consumer confidence, consumer confidence, purchasing managers and service managers feel, etc.)
To consider, and these country's political stability and peace (of course, natural disasters and political instability in any other insurance, so they are nervous investors pulled out in the country, weakening the national currency). With such a national currency derivatives, the changes in the economic data will inevitably flow rate on the issue of money.
Conclusion:
In the progress of the economic rebound in currency exchange rates.
Decline in the economic indicators led to decline in the national currency's exchange rate.
In short, the key economic and political news (which pre-announced calendar, and familiar to any operator) is the result of factors lead to permanent imbalance and currency volatility.
Foreign exchange in the economic and political track inspired by the budget is expected to like the news ( "Trade rumors"), but the real news is that exercise pulse exchange programs in accordance with the following;
Foreign exchange rate increase, if the real news is better than expected;
Decline in the real exchange rate news is that, if worse than expected.
For these reasons you and ABC are familiar with studies on foreign exchange transactions?
Do you accept, you can get to know these basic elements of each transaction, with the money?
Why, then, is the result of absorption of these economic justice, foreign exchange transactions around the world, 90% of the loser the winner.
If it is ABC's fantasy of the above-mentioned facts, prompting traders lose? Let us analyze one by one to run a number of stations.
The foreign exchange market Forex trading is a book first responsible person. They are gambling there is no difference in the rate of the currency in the foreign exchange market, direct shipment, in addition to covering the brokerage firm through the purchase of foreign exchange funds, sales of difference, especially in) a strong trend. Then, the World Wide Web. forexite. The COM said: "The transaction is in the absence of foreign exchange, indirect costs, and effectively reduced, and allow Forexite go long, the poor" http://www supply of the real. forexite. forexite_advantages the COM / / forex_advantages. HTML.
Comments: Did you meet any one person in charge of the book;
Logic or with their customers (merchants positive)
Its shares or in connection with their technical, economic laws and common sense analyst's projections are based on progress to date?
And what degree of doubt, the freedom to speculate should pay attention to its "suggestions", "opinions", "investigation" and "estimate", on their website, through analysis of their written?
Therefore, in general, and more than 90% of day traders, the world is losing their deposits for each currency in accordance with the stereotype of Denmark Thomas said: "All economists share these basic principles.
Comments 1. To some extent, contradict the basic principles of the above 90%, and the practice is leading to the next question. Are these "core principles agreed that all economists, including Thomas Denmark" may have become dogma, ignoring the life and practice?
Comment 2. What must be accompanied by business: or dogmatic approach, even if the support of big names, but only if businesses should make money?
The daily foreign exchange analyst at issue in the majority of market reviews is not the volume foreign exchange transactions (for detailed analysis, see below). And the grouping of 1,2 and 3 are not always occur.
Please think about the words of Elder A, said: "Exchange rates and fundamental analysis, using a rope tied to a mile long. Fundamental analysis is a final decision. But anything can happen prior to this event. See http://forum . Alpari company, IDC company. ru / viewtopic. PHP's? p = 233365 & Sid = a15db5e24b0eec0a8cf725e2c5cac859).
However, another equally well-known traders and analysts, Bill Williams stressed that taking into account the experience of the professional trading rules (level of the operator's technical level 3, "Trading Chaos 2"): "In arriving at level 3 car there – dealers. When you are with the basic structure of the market, usually not visible familiar. there is no need to refer to other people's views. there is no need for the "Wall Street Journal, market-oriented view television programs, and subscribe to newsletters, money channels of information waste. "
Comment: Of course, there is an anti-hinted that if they do not want to become a successful businessman, is to limit the variety of research reports and recommendations of their influence, even if they come from the world famous "The Wall Street Journal, not to mention Health Fur analysts will see the money in advance the use of a master.
Forex News is based on basic data, the general impact of acute foreign exchange rate of impulse movement problems. But why the media currency turnover rate was only 50%, while the ABC consistent logic to speed up the local real news, the rate is far lower or higher than the estimated worse. And requests, so trying to answer this question, stirring to each retailer: Why does the new worse than expected (for example, the U.S. economy), the U.S. dollar exchange rate started to decrease 40 (news too), but 5 to 10 minutes will be a link, reveals the 200 points meeting, whether the message is not issued or common sense.
Here are some examples:
Figure 1. Pound against the dollar table April 1, 2005 after the pound and negative good news on the U.S. economy.
(Photo can be seen on the site's author)
This year in March, CIPS manufacturing index rose to 52. 0 (from 51 modified the previous data. 8 to 51.6). Oil prices in New York, an increase of 2 U.S. dollars. 40 USD57. Record 70 a barrel (new in the past 21 years). Non-US agricultural employment is the lowest since last July (before the amendment, the lower value of the data). There is a University of Michigan sentiment index fell to 92. 6 (average estimate of 92. 9,92. 9).
All the U.S. indices for the fall. Dow down 99 in the New York Stock Exchange. 46 pips (-0. 95%), to close at 10404. 30. The Nasdaq fell 14. 42 pips (-0. 72%) to 1984. 81. The Standard & Poor's 500 index fell 7. 67 pips (-0. 65%) of 1172. 92. 30 – are receiving the U.S. bond to the 4. 729 (0.037 lower than the previous end). On the contrary, FTSE100 index has risen by 19. 60 (0.40%) for 4914. 00.
The question now is certified economists: what would happen sterling against the dollar in a day or two, in the publication of these data and even a few hours? You are right, the dollar should not be limited down to collapse. Hard and fast. Ah, ah …
This time, the same problems experienced traders. The foreign exchange news headlines can guess, these activities are in the United States held a meeting Friday. Correct. However, at the beginning of the graph will rise by 100 points against the dollar, pound (News wok before), then decreased. And then chart a new foreign exchange start of the race.
Can now be followed, if the euro have been violated or not the last time a high rebound. If so, is about 160 basis points (Elliott wave a peak of 100 points, while the electronic warfare 3 is 60% above). However, if you do not violate high? Never deadlock pounds currency prices, but Friday afternoon. Therefore, the – to the starting point! Moreover, if violated, there are a similar situation, but the vote count in the "down" direction (EW1, which is more than 100 points to 187 points, 1. 8826-1. 8759 the conduct of electronic warfare is 3).
Forex day trading strategy to consider in a separate section. A separate chapter is devoted to the United States even in the last Friday of the movement because of its inherent features and powerful trading is clearly insufficient. This movement, of course, right. Not to mention Friday. However, will be discussed later.
Now, back to the currency table. As shown, the British pound against the dollar on the 1st of April 2005 asked about the U.S. economy is by no means critical data. Each one foreign exchange dealer can provide tens of thousands of similar cases, if the message is a single carrier, but several hundred, after the peak along the vector fraud news, money for counter-thrust.
Subsequently, the currency the next day in the daily poll, economists must explain the naked licensing the invention, such as re-silly ", though some data given to us all, the operators decided to hand over money and have it." But! How it was took place in April, 01,2005, the condition that the money has been staying in a flat within a narrow range, the European Conference as a whole?
Otherwise, it may occur Another explanation is that foreign exchange traders awaited further news than the U.S. economy, but …! How much lower, if you agree with DJ, the U.S. non-farm employment, equivalent to 18 million less than Ma troops, 110 acres, 225 K of the estimates and the former 243 degrees? And how to calculate these economists to the businessmen in the world per capita by country or those who continue to assume that well-known scholars wandering sacred beliefs of funds tied to foreign exchange losses, statistics of these countries economies.
I do not know off the opportunity to witness the legal proceedings to be instituted well-known scholars, so that no one can say the basic data rate of the activation peaks.
The same refers to the economist's way thousands of businesses around the world, tens of thousands of collusive conclusion is that it is time there is no reason to reverse the trend of writing. Is it really possible?
Read the content, but remember that an idea struck: in lying or stupid everyday cooking the report of traders walk, they were deceived, so inconsistent with the facts, they stay away from this may be widely available to their daily operation. Dealer is not a decisive factor, so the loss rate is not dependent on his will. In fact in any way.
Tests? Negotiated dozens of people trading floor operators to arrange a long-term foreign currency at the same time to enter. Therefore, efforts to improve the two NZDHKD, or NZDCAD, or HKDCAD. Is not necessary? I think so. Of course, you will suffer from this failure, said the euro, British pound, Swiss franc what.
Another example
Figure 2. Pound against the dollar May 13 Movement, 2005.
  (Photo can be seen on the site's author)
In the M15 is the U.S. trading hours at the department has more than 100 points by 1, Fig. 8583-1. 8481 pairs of negative U.S. economic news:
Most indexes have fallen: In the New York Stock Exchange index – 49. 36 pips (-0. 48%), to close at 10140. 12, S & P 500 – 5. 31 pips (-0. 46%) of 1154. 05. The Nasdaq rose 12. 92 points (0. 66%) to1976. 80. U.S. 30yr bond to the 4. 484 (0.047 decreased from the previous day's close)
There is a University of Michigan sentiment index decreased. May the University of Michigan 85. 3901-5 magazines. 0 before the 87. 7. This is a serious than estimated, in March 2003 reached its lowest level since. In the first five months of decline, observe speed.
U.S. export prices in April's index is 0. 6%, 0. 7%.
The following day, other similar examples.
Figure 3. Table euro against the dollar May 13, 2005.
(Photo can be seen on the site's author)
Hundreds of examples can be, which is a relative vector foreign news flow of money. In practice, the real news may be higher or lower than budgeted. Foreign Exchange Quotes up / down movement is also the possibility of 50/50, regardless of the above.
This is why, what is the mode of operation to determine the input and output? This will be discussed in subsequent chapters of this book and procedures Masterforex – V Trading Academy.
Full text of this article and examples pictures http://www. MasterForex – V and so on. Su /
Received training on trade Masterforex – 5 – a new and more effective world currency trading tips, please visit http://www. MasterForex – V and so on. Su /

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