Forex technical analysis trading

October 31, 2008 · Filed Under forex

The topic of foreign currency trading in pairs can be a challenge for beginners to start with. Whenever someone enters a currency trade, is involves two currencies. But even if there are two currencies involved in trading, there is only one exchange rate. Therefore, each transaction or trade involves two different currencies but a single exchange rate.

The value of the currency itself does not change but its value in relation to a second currency can change. For example a single dollar you may have today would still be worth $1 dollar the next day; although, the value of that dollar constantly fluctuates relative to other currencies. This is the main reason why there is a need to trade currencies in pairs in the forex market.

Forex markets are the same as seamless and 24-hour trading markets; there are no fixed time schedules. The market allows traders to make the decision for themselves when to trade no matter what the time of day. There are even part-time traders, with full-time jobs, who can trade forex. More so, wherever the individual is located or whatever hours he or she keeps, the individual can still trade in the forex market.

Since the market is open 24 hours each day, no one can really tell when the market opens and closes at a specific time of day. It is important for traders to designate a particular time of day as a benchmark.

Several traders begin trading at 5:00 p.m. Eastern U.S. or New York time, 10:00 p.m. London time. Because the forex market trades 24 hours, the trading day also ends at the same times of the day as mentioned.

During that time of the day, the three largest forex trading centers, namely the United States, Great Britain and Japan, are quiet. However, the New Zealand and Australian dollars may witness some action during those hours.

The trading sessions for Asia starts a few hours later, at around 7:00 p.m. Eastern U.S. time, London midnight time. For the European session, the trading begins at around 3:00 a.m. Eastern U.S. time. Lastly, the U.S. session starts at 8:00 a.m. New York time, which is halfway through the trading session of London.

It is recommended that because there can be such a steep learning curve when getting into forex trading, that if someone wants to learn where the profits more quickly can be found, an expert teacher will be very helpful. We know of one expert, Jason Alan Jankovsky who is a Forex analyst and trader with more than 20 years of knowledge behind him. He recently created a tutorial system on forex course trading, the Forex Brotherhood, that is the closest thing to one-on-one forex mentorship.

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