Leading indicators attempt to predict future price action. Most fundamental analysis attempts to use leading indicators such as news, central bank meeting minutes and various economic data to attempt to ascertain the future direction of a currency. Oscillators (RSI, stochastics, … Continue reading
A lagging indicator tells you which way the trend is already going. For example, a moving average will tell you the average price of a pair over the past number of specified time frames, but won’t tell you by itself … Continue reading
“Kiwi” is a nickname for the New Zealand Dollar (NZD).
“Greenback” is a nickname for the US dollar.
Fundamental analysis is the analysis of a currencies main driving economic factors (such as interest rate, inflation, unemployment data, manufacturing data, etc.) with the goal of determining the future exchange rate of a given currency. Trading news events is a … Continue reading
The Federal Reserve, or Fed, is the central bank of the United States. It is in charge or monetary policy, including interest rate decisions and its meetings are watched closely by traders for any hint of an interest rate change.
Are the major fundamental driving-factor in the exchange rate of currencies. In layman’s terms the interest rate is the amount of money a government will give to you just for holding their currency. Governments change interest rates to drive invesmtent … Continue reading
Also known as news events. Term used to describe a possible change in the fundamental analysis of a pair. For example, a rate change decision by the Fed or ECB is a very high event-risk as it has the ability … Continue reading
An order to enter the markets at a specified price. Entry orders can be executed while traders are away from their computer, for taking profit, limited losses and for a variety of other purposes. Many traders use entry orders to … Continue reading
The European Central Bank, or ECB, is one of the most influential banks in currency markets only behind the US Fed. The ECB controls the monetary policy for all member-states of the eurozone. Esablished by the European Union and based … Continue reading