What is traded on the Foreign Exchange With ForexGen ?

Different countries use different currencies, however cross-border has to take place.

The FOREX is therefore a vehicle driven by the need to move monetary payments across border and transfer funds and value from one currency to another.

If the whole world used one currency there would be no need for the FOREX market.

For example if a US restaurant needs to buy Italian cheese it needs Euros to pay the Italian cheese maker so it must be able to exchange US dollars for Euros. Likewise if the US restaurant makes the payment in US dollars the Italian cheese maker must be able to exchange the dollars into Euros.

It's as simple as that.

Protect Your Self

Before we go any further we are going to be 100% honest with you and tell you the following before you consider trading currencies:All forex traders traders LOSE money on tradesNinety percent of traders lose money, largely due to lack of planning and training and having poor money management rules.
Trading forex is not for the unemployed, those on low incomes, or who can’t afford to pay their electricity bill or afford to eat.
The Forex market is one of the most popular markets for speculation, due to its enormous size, liquidity and tendency for currencies to move in strong trends.Many traders come with the misguided hope of making a gazillion bucks, but in reality, lack the discipline required for trading.
Most people usually lack the discipline to stick to a diet or to go to the gym three times a week.

Leading vs. Lagging Indicators

Leading vs. Lagging IndicatorsLeading IndicatorsAn index published monthly by the Conference Board used to predict the direction of the economy’s movements in the months to come. The index is made up of 10 economic components, whose changes tend to precede changes in the overall economy.
These 5 components include:1. the average weekly hours worked by manufacturing workers.2. The average number of initial applications for unemployment insurance.3. The amount of manufacturer’s new orders for consumer goods and materials.4. The speed of delivery of new merchandise to vendors from suppliers.5. The amount of new orders for capital goods unrelated to defense.

The Million Dollar Question

How do you figure out whether to freakin’ use oscillators, or trend following indicators, or both? After all, we know they don’t always work in tandem.For now, just know that once you’re able to identify the type of market you are trading in, you will then know which indicators will give accurate signals, and which ones are worthless at that time. SummaryThere are two types of indicators: leading and lagging.A leading indicator gives a buy signal before the new trend or reversal occurs.A lagging indicator gives a signal after the trend has tarted .Technical indicators into one of two categories: Oscillators and trend following or momentum indicators.

Double Bottom

A charting pattern used in technical analysis. It describes the drop of a stock (or currency), a rebound, another drop to the same (or similar) level as the original drop, and finally another rebound.The twice touched low is considered a support level.Most technical analysts believe that the advance off of the first bottom should be 10-20%. The second bottom should form within 3-4% of the previous low, and The volume .

Ascending Triangles

A bullish chart pattern used in technical analysis, which is easily recognizable by the distinct shape created by two trend lines. In an ascending triangle, one trend line is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trend line connects a series of increasing troughs.An ascending triangle is generally considered to be a continuation pattern, meaning that it is usually found amid a period of consolidation within an uptrend. Once the breakout occurs, buyers will aggressively send the price of the asset higher, usually on high volume. The most common price target is generally set to be equal to the entry price plus the vertical height of the triangle.

Descending Triangles

A bearish chart pattern used in technical analysis that is created by drawing one trend line that connects a series of lower highs and a second trend line that has historically proven to be a strong level of support. Traders watch for a move below support, as it suggests that downward momentum is building.This is a very popular tool among traders because it clearly shows that the demand for an asset is weakening, and when the price breaks below the lower support, it is a clear indication that downside momentum is likely to continue or become stronger.