This is similar to technical analysis for equity trading, except for the timeframe–Forex markets are open 24 hours a day. Because of this, some forms of technical analysis that … Rio Financial Group 2006 1 www.forexwealth. com Cooking In The Forex”The Forex can make your wildest dreams come true…BUT it is not a get rich quick scheme…it requires work, study, continuous education, discipline and perseverance”. Scott Barkley Thank you for taking the time to download this Cooking In The Forex e-book. First, let me say …

If you are a moderately experienced or experienced trader, skip the first part. It is boring but necessary for those just starting. When it comes to successful Forex trading, there are two basic strategies used by the majority of traders: fundamental analysis and technical analysis. Fundamental Analysis In fundamental analysis, Forex traders look for causes that might trigger market fluctuations. These may include political activities, financial policies, growth rates and other factors. As you can imagine, fundamental analysis of the Forex market can be fairly difficult. For that reason, most traders use fundamental analysis only to predict long-term trends. But a few use fundamental analysis for short-term trades. They review different currency value indicators that are released several times throughout the day, such as: 9 Consumer Price Index 9 Purchasing Managers Index & Non-farm Payrolls (the mother of all Fundamental Announcements) 9 Retail Sales 9 Durable Goods In addition, there are meetings held that provide quotes and commentary which may affect markets. These meetings, such as those of the Federal Trade Commission, Federal Open Market Committee, and Humphrey Hawkins Hearings, often discuss interest rates, inflation and other issues that have the ability to affect currency values. Examining the meeting reports and commentary can help Forex fundamental analysts to better understand long-term market trends, and also allow short-term traders to profit from important activities and events. If you decide to follow a fundamental analysis strategy, be sure to keep an economic calendar that shows when these reports are released. Your broker may also be able to provide you with real-time access to this kind of information via the internet. Technical Analysis The more popular strategy for Forex traders is the technical analysis.Technical analysis of Forex trading includes the use of graphs, charts and other methods of measuring past data to see the indication of the rise and fall of currencies. In other words, to spot trends. This is similar to technical analysis for equity trading, except for the timeframe–Forex markets are open 24 hours a day. Because of this, some forms of technical analysis that factor in time must be modified so they will work with the 24-hour Forex market. Note: this e-book is for those interested in TECHNICAL ANALYSIS. Fundamental analysis is for the BIG institutional trader and is not addressed in this e-book.

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