Forex 4 Hour Price Action Strategy | Forex Oanda

What is Forex?

Forex is the acronym for "currency market", furthermore known as the Portuguese currency market. The currency is the financial atmosphere once the largest dimension and the highest liquidity in the world, in the manner of more than 4 billion dollars a morning in poster movements. The size of the foreign quarrel promote is such that the trading volume of the supplementary York gathering disagreement does not even accomplish 2% of those realized in the currency.

Currency pairs and row rate

In forex trading later than currency pairs (cryptomoedas and more). By analyzing the EUR / USD clash rate, you can look how many USD (listed or secondary currency) you need to buy 1 EUR (base currency).

Therefore, if the difference of opinion rate of the EUR / USD currency pair is 1.2356, this means that each euro can buy 1.2356 dollars.

If the row rate increases, it means that the base currency has strengthened adjoining the auxiliary currency. If the squabble rate eventually decreases, it means the opposite.

The characteristics of the Forex or Forex market

- Liquidity: Because of the $ 5 billion that circulates daily, the foreign row spread around is considered the most liquid promote in the world. Basically, this means that you can buy any currency whenever you want, as long as the market is open.

- working and decentralized: the foreign clash market is a enthusiastic and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, influence the price trend of a pair.

- 24/5 hours: A key factor that characterizes trading on the foreign argument publicize is the number of hours of operation; The foreign disagreement shout out is entry 24 hours a day, five functioning days a week, which makes it extremely attractive for many traders.

What are the factors that pretend the foreign exchange market?

As currency transactions are immediate, the price of foreign disagreement is affected by the pretense of supply and demand and, consequently, by speculation.

Thus, stability and the diplomatic and economic events, as without difficulty as the monetary policy of the countries, are elements that describe the contributions.

- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly sham the price of a currency by adopting positive economic proceedings and announcements. For example, a rise in immersion rates in the US Federal superiority would layer the value of the US currency.

- Political, social and economic events. If Forex participants assume that a social event, can move the political, economic or natural strengthening or subside in a currency, they will fine-tune the make public price later than its operations that have enough money regulate and request for the currency concerned.

The more people assume that a consistent trend is followed, the more it will piece of legislation promote prices, as this will reflect spread around sentiment.

Recent major happenings such as Brexit or the US elections directly and tersely influenced the value of currencies.

Reports of economic and social organizations. Debt analysis taking into account the IMF, large loans from the EU or the health of the industry in a fixed idea country (especially the big powers), as without difficulty as data upon unemployment and inflation, nevertheless pay for a more translucent vision of what might happen on the markets and in the economy, suitably it as well as has a rather accentuated weight under the currency.

What should I reach later than I trade in the currency?

Forex Trading always involves trading considering a currency pair. For example, if you think the pound sterling (GBP) will value neighboring the dollar, you should buy the GBP / USD currency pair.

If, on the contrary, we expect a devaluation, that is to tell that the dollar will strengthen, he will have to sell the currency pair he has.

The first dogfight is called the purchase position, which means that the trader wants to purchase the base currency (GBP) and sell the auxiliary currency. In the second, the operator would entry a sales approach to sell the pound sterling (GBP), the base currency.

2019-01-12 5:25:56