Easy Forex Strategy Review

The Forex Trading Market Provides An Opportunity For Wealth & Freedom

There are two kinds of standard Doji Stars: Evening Star and Morning Star. An Evening Star is gapped above after the long candlestick body during an uptrend market; while for the Morning Star, it is gapped below after the long candlestick body during a downtrend market.

A formation that doesn’t have or have a very tiny real body is called a Doji. Doji is formed when the opening price and the closing price are almost the same or similiar. It indicates the buyers could not manage to force the price to go higher then the opening price.

In a market, normally there are two kinds of trading conditions that will repeat regularly to form a flowing chart, range bound and trending states. These kinds of condition usually happened when traders extremely overbought or oversold their share of market.

Bollinger Bands are techniques that are created in the 1980s by John Bollinger. They are plotted lines that represent an upper and lower trading range for a particular market price. It is a guide for traders to see how the future market would go. Each of the line is the predictable range of the moving average. So, the currency pair is expected to trade within these limitations.

Dollar turned sideway after a rather balanced FOMC minutes and continues to trade in tight range today as focus turns to services data. The FOMC minutes reveals that members' biggest concern is still on inflation as "all members agreed that the risk that inflation would fail to moderate as desired remained the predominant concern."

When it comes to trading, I'm sure you're familiar with following 'the trend'. Trading with the trend is a time-honored maxim among traders that should be self-evident. If you trade with the trend, the probability of being right increases that is, until a divergence pattern occurs.

Dollar takes a breathe today and recovers mildly into European session. However, sentiments remain vulnerable ahead of ISM manufacturing index and FOMC minutes. US ISM manufacturing index has dropped for the fourth consecutive month in Nov and reached a sub-50 contraction level of 49.5 for the first time since 2003.

On the first trading of 2007, Euro continues strengthening against dollar and also scoring new record high against the Japanese Yen. EUR/JPY surges to as high as 157.83 and remains strong. On the other hand, dollar continues to trade with an undertone against European majors. Technically speaking, with near term support broken, recent corrective recovery of dollar could have already completed and further weakness should be seen in short term to retest Dec lows against Euro and Sterling.