Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves, 3rd Edition (Wiley Trading)

**Play the forex markets to win with this invaluable guide to strategy and analysis**__Day Trading and Swing Trading the Currency Market__ gives forex traders the strategies and skills they need to approach this highly competitive arena on an equal footing with major institutions. Now in it's third edition, this invaluable guide provides the latest statistics, data, and analysis of recent events, giving you the most up-to-date picture of the state of the fast-moving foreign exchange markets. You'll learn how the interbank currency markets work, and how to borrow strategy from the biggest players to profit from trends. Clear and comprehensive, this book describes the technical and fundamental strategies that allow individual traders to compete with bank traders, and gives you comprehensive explanations of strategies involving intermarket relationships, interest rate differentials, option volatilities, news events, and more. The companion website gives you access to video seminars on how to be a better trader, providing another leg up in this competitive market. The multi-billion-dollar foreign exchange market is the most actively traded market in the world. With online trading platforms now offering retail traders direct access to the interbank foreign exchange market, there's never been a better time for individuals to learn the ropes of this somewhat secretive area. This book is your complete guide to forex trading, equipping you to play with the big guys and win—on your own terms. * Understand how the foreign currency markets work, and the forces that move them * Analyze the market to profit from short-term swings using time-tested strategies * Learn a variety of technical trades for navigating overbought or oversold markets * Examine the unique characteristics of various currency pairs Many of the world's most successful traders have made the bulk of their winnings in the currency market, and now it's your turn. __Day Trading and Swing Trading the Currency Market__ is the must-have guide for all foreign exchange traders. Cover......Page 1 Title Page......Page 5 Copyright......Page 6 Contents......Page 9 Preface......Page 11 About the Author......Page 13 Chapter 1 Foreign Exchange—The Fastest Growing Market of Our Time......Page 15 Nikkei and U.S. Dollar......Page 16 Chinese Yuan Revaluation and Bonds......Page 17 Comparing the FX Market with Futures and Equities......Page 18 24-Hour Market......Page 19 Customizable Leverage......Page 20 No Trading Curbs or Uptick Rule......Page 21 Perfect Market for Technical Analysis......Page 22 Analyze Stocks Like Countries......Page 23 FX versus Futures......Page 25 No Limit Up or Down Rules/Profit in Both Bull and Bear Markets......Page 26 Execution Quality and Speed/Low Error Rates......Page 27 Centralized Markets......Page 28 Hierarchy of Participants......Page 29 Dealing Stations—Interbank Market......Page 30 Bretton Woods: Anointing the Dollar as the World Currency (1944)......Page 31 The End of Bretton Woods: Free Market Capitalism Is Born (1971)......Page 32 Plaza Accord—Devaluation of the U.S. Dollar (1985)......Page 34 The UK Joins the Exchange Rate Mechanism......Page 36 Soros Bets Against the Success of UK Involvement in the ERM......Page 37 Ballooning Current Account Deficits and Nonperforming Loans......Page 39 Currency Crisis......Page 40 Introduction of the Euro (1999)......Page 41 Chapter 3 What Moves the Currency Market......Page 45 Fundamental Analysis......Page 46 Capital Flows......Page 47 Trade Flows: Measuring Exports versus Imports......Page 49 Trading Tip: Charting Economic Surprises......Page 50 Technical Analysis......Page 52 Balance of Payments Theory......Page 53 Equity Markets......Page 55 Summary of Trade and Capital Flows......Page 56 Purchasing Power Parity......Page 57 The Monetary Model......Page 59 Real Interest Rate Differential Model......Page 61 The Asset Market Model......Page 62 The Currency Substitution Model......Page 64 What Are the Best Times to Trade for Individual Currency Pairs?......Page 67 Asian Session (Tokyo): 7pm to 4am EST......Page 68 U.S. Session (New York): 8am to 5pm EST......Page 69 European Session (London): 3am to 12pm EST......Page 70 US-Europe Overlap: 8am to 12pm EST......Page 72 European–Asian Overlap: 2am to 4am EST......Page 73 Chapter 5 What Are the Most Market Moving Economic Data?......Page 75 Relative Importance of Data Changes over Time......Page 76 GDP Is No Longer a Big Deal......Page 77 How Can You Use This to Your Benefit?......Page 78 Resources......Page 79 Chapter 6 What Are Currency Correlations, and How Can We Use Them?......Page 81 Positive/Negative Correlations—What They Mean and How to Use Them......Page 82 Calculating Correlations Yourself......Page 83 Sample Correlations Results......Page 85 Keep a Trading Journal......Page 87 Currency Pair Checklist......Page 88 Existing or Completed Trades......Page 92 Have a Toolbox—Use What Works for the Current Market Environment......Page 94 Profiling a Range Environment......Page 95 Identifying a Trending Environment......Page 97 Intraday Trade (Range)......Page 98 Medium-Term Trend Trade......Page 99 Risk Management......Page 100 Placing the Stop Loss......Page 101 Chapter 8 Technical Trading Strategy: Multiple Time Frame Analysis......Page 105 Chapter 9 Technical Strategy: Trading with Double Bollinger Bands......Page 115 Using Double Bollinger Bands to Pick Tops and Bottoms......Page 117 Using Double Bollinger Bands to Join a New Trend......Page 121 Chapter 10 Technical Trading Strategy: Fading the Double Zeros......Page 125 Strategy Rules......Page 126 Examples......Page 127 Chapter 11 Technical Trading Strategy: Waiting for the Deal......Page 131 Strategy Rules......Page 132 Examples......Page 133 Chapter 12 Technical Trading Strategy: Inside Days Breakout Play......Page 137 Further Optimization......Page 138 Examples......Page 139 Chapter 13 Technical Trading Strategy: Fader......Page 143 Examples......Page 144 Further Optimization......Page 147 Strategy Rules......Page 149 Examples......Page 150 Chapter 15 Technical Trading Strategy: Channels......Page 153 Examples......Page 154 Chapter 16 Technical Trading Strategy: Perfect Order......Page 157 Examples......Page 158 Chapter 17 Fundamental Trading Strategy: Pairing Strong with Weak......Page 163 Chapter 18 Fundamental Trading Strategy: The Leveraged Carry Trade......Page 167 How Do Carry Trades Work?......Page 168 Why Do Carry Trades Work?......Page 169 How Much Risk Are You Willing to Take?......Page 170 When Will Carry Trades Not Work?......Page 171 Risk Aversion and Carry Trade Profitability......Page 172 Low Interest Rate Currency Appreciation......Page 173 Time Horizon......Page 174 Chapter 19 Fundamental Trading Strategy: Macro Event Driven Trade......Page 175 European Sovereign Debt Crisis (2009-2013)......Page 176 Global Financial Crisis (2007-2009), Subprime......Page 178 Political Uncertainty: 2004 U.S. Presidential Election......Page 179 G7 Meeting Dubai September 2003......Page 180 U.S. War Against Iraq......Page 181 Chapter 20 Quantitative Easing and Its Impact on Forex......Page 183 UK Quantitative Easing......Page 184 Eurozone Quantitative Easing......Page 189 Chapter 21 Fundamental Trading Strategy: Commodity Prices as a Leading Indicator......Page 191 Gold......Page 192 Oil......Page 193 Trading Opportunity......Page 194 Chapter 22 Fundamental Strategy: Using Bond Spreads as a Leading Indicator for FX......Page 195 Calculating Interest Rate Differentials and Following the Currency Pair Trends......Page 196 Interest Rate Differentials: Leading Indicator, Coincident Indicator, or Lagging Indicator?......Page 197 Chapter 23 Fundamental Trading Strategy: Risk Reversals......Page 201 How Can You Use This Information?......Page 202 Examples......Page 203 Chapter 24 Fundamental Trading Strategy: Using Option Volatilities to Time Market Movements......Page 205 Who Can Benefit from This Technique?......Page 206 Tracking Volatilities on Your Own......Page 208 Chapter 25 Fundamental Trading Strategy: Intervention......Page 209 Japan......Page 210 Switzerland......Page 211 Eurozone......Page 214 Broad Economic Overview......Page 217 Monetary and Fiscal Policy Makers—The Federal Reserve......Page 219 Important Characteristics of the U.S. Dollar......Page 220 Important Economic Indicators for the United States......Page 223 Broad Economic Overview......Page 227 The EMU Criteria......Page 229 Open Market Operations......Page 230 ECB Minimum Bid Rate (Repo Rate)......Page 231 PMIs......Page 233 German Industrial Production......Page 234 Preliminary GDP......Page 235 Individual Country Budget Deficits......Page 236 Broad Economic Overview......Page 237 Monetary and Fiscal Policy Makers—Bank of England......Page 239 Important Characteristics of the British Pound......Page 240 Employment Situation......Page 243 UK Housing Starts......Page 244 Broad Economic Overview......Page 245 Central Bank's Goals......Page 246 Their Tools......Page 247 Important Characteristics of the Swiss Franc......Page 248 KoF Leading Indicators......Page 250 Retail Sales......Page 252 Economic Overview......Page 253 Abenomics......Page 254 Open Market Operations......Page 255 Important Characteristics of the JPY......Page 256 Industrial Production......Page 258 GDP......Page 260 Broad Economic Overview......Page 261 Central Bank's Goals......Page 262 Cash Rate......Page 263 Monetary Policy Meetings......Page 264 Important Characteristics of the Australian Dollar......Page 265 Balance of Goods and Services......Page 266 Producer Price Index......Page 268 Broad Economic Overview......Page 269 Monetary and Fiscal Policy Makers—Reserve Bank of New Zealand......Page 270 Objectives for Fiscal Policy......Page 271 Commodity-Linked Currency......Page 272 Population Migration......Page 273 Consumer Price Index......Page 274 Producer Price Index......Page 276 Broad Economic Performance......Page 277 Central Bank Goals......Page 278 Important Characteristics of the Canadian Dollar......Page 279 Trade Balance......Page 281 Producer Price Index......Page 282 Index......Page 283 EULA......Page 291

Play the forex markets to win with this invaluable guide to strategy and analysis

Day Trading and Swing Trading the Currency Market gives forex traders the strategies and skills they need to approach this highly competitive arena on an equal footing with major institutions. Now in it's third edition, this invaluable guide provides the latest statistics, data, and analysis of recent events, giving you the most up-to-date picture of the state of the fast-moving foreign exchange markets. You'll learn how the interbank currency markets work, and how to borrow strategy from the biggest players to profit from trends. Clear and comprehensive, this book describes the technical and fundamental strategies that allow individual traders to compete with bank traders, and gives you comprehensive explanations of strategies involving intermarket relationships, interest rate differentials, option volatilities, news events, and more. The companion website gives you access to video seminars on how to be a better trader, providing another leg up in this competitive market.

The multi-billion-dollar foreign exchange market is the most actively traded market in the world. With online trading platforms now offering retail traders direct access to the interbank foreign exchange market, there's never been a better time for individuals to learn the ropes of this somewhat secretive area. This book is your complete guide to forex trading, equipping you to play with the big guys and win—on your own terms.

• Understand how the foreign currency markets work, and the forces that move them
• Analyze the market to profit from short-term swings using time-tested strategies
• Learn a variety of technical trades for navigating overbought or oversold markets
• Examine the unique characteristics of various currency pairs

Many of the world's most successful traders have made the bulk of their winnings in the currency market, and now it's your turn. Day Trading and Swing Trading the Currency Market is the must-have guide for all foreign exchange traders.

"Play the forex markets to win with this invaluable guide to strategy and analysis Day Trading and Swing Trading the Currency Market gives forex traders the strategies and skills they need to approach this highly competitive arena on an equal footing with major institutions. Now in it's third edition, this invaluable guide provides the latest statistics, data, and analysis of recent events, giving you the most up-to-date picture of the state of the fast-moving foreign exchange markets. You'll learn how the interbank currency markets work, and how to borrow strategy from the biggest players to profit from trends. Clear and comprehensive, this book describes the technical and fundamental strategies that allow individual traders to compete with bank traders, and gives you comprehensive explanations of strategies involving intermarket relationships, interest rate differentials, option volatilities, news events, and more. The companion website gives you access to video seminars on how to be a better trader, providing another leg up in this competitive market. The multi-billion-dollar foreign exchange market is the most actively traded market in the world. With online trading platforms now offering retail traders direct access to the interbank foreign exchange market, there's never been a better time for individuals to learn the ropes of this somewhat secretive area. This book is your complete guide to forex trading, equipping you to play with the big guys and win--on your own terms. Understand how the foreign currency markets work, and the forces that move them Analyze the market to profit from short-term swings using time-tested strategies Learn a variety of technical trades for navigating overbought or oversold markets Examine the unique characteristics of various currency pairs Many of the world's most successful traders have made the bulk of their winnings in the currency market, and now it's your turn. Day Trading and Swing Trading the Currency Market is the must-have guide for all foreign exchange traders"-- Provided by publisher "Day Trading and Swing Trading the Currency Market gives forex traders the strategies and skills they need to approach this highly competitive arena on an equal footing with major institutions. Now in it's third edition, this invaluable guide provides the latest statistics, data, and analysis of recent events, giving you the most up-to-date picture of the state of the fast-moving foreign exchange markets. You'll learn how the interbank currency markets work, and how to borrow strategy from the biggest players to profit from trends. Clear and comprehensive, this book describes the technical and fundamental strategies that allow individual traders to compete with bank traders, and gives you comprehensive explanations of strategies involving intermarket relationships, interest rate differentials, option volatilities, news events, and more. The companion website gives you access to video seminars on how to be a better trader, providing another leg up in this competitive market. The multi-billion-dollar foreign exchange market is the most actively traded market in the world. With online trading platforms now offering retail traders direct access to the interbank foreign exchange market, there's never been a better time for individuals to learn the ropes of this somewhat secretive area. This book is your complete guide to forex trading, equipping you to play with the big guys and win-on your own terms. Understand how the foreign currency markets work, and the forces that move them Analyze the market to profit from short-term swings using time-tested strategies Learn a variety of technical trades for navigating overbought or oversold markets Examine the unique characteristics of various currency pairs Many of the world's most successful traders have made the bulk of their winnings in the currency market, and now it's your turn. Day Trading and Swing Trading the Currency Market is the must-have guide for all foreign exchange traders."-- Résumé de l'éditeur