Foreign Exchange News, Analysis, Education for Currency Traders
April 2014
The Craft of Mastering Forex Trading
EUROPE’S
DEFLATION PROBLEM TRADER’S CORNER
WORLD CURRENCY NEWS
The course you should explore
Europe’s dance with deflation
FOREX SCIENCE
ONLINE TRAINING
Same tools, new ways to explore through an intense course
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GETTING TO KNOW YOUR BROKER How to Cuestionaire From Iron FX LEARN
COACH
TRADE
CONTENTS TRADER’S CORNER
FX TIPS & TRICKS
PREVEW TO FOREX TRADING ONLINE TRAINING PROGRAM 2014
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We are excited to introduce the Art of Forex trading course, it is a 8 week course where we go from the basic, the intermidiate and the propietary Art of Forex Strategy.
GETTING TO KNOW YOUR PLATFORM
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FOREX MARKET ALLOWS YOU TO MAKE MONEY EVEN AT 3 PM
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Our method of trading allow us to confidently trade openly five days a week and some night sessions as well.
FOREX SCIENCE Forex Course
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Forex Course
WOLRD CURRENCY NEWS
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Europe’s dance with deflation
EDITORIAL
A Glimpse to What’s Ahead.
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A Glimpse to What’s Ahead We started with a simple idea in mind, share our forex knowledge with a community of people that are looking for good quality information, coach them so they can see the different aspects of the market, and Trade along with them so that together we can see the value of an Art. Art of Forex was born afther this principal, because we want to influence in a good way people that come to us to learn Forex. We understand that Forex is an Art, and like any artistic form, we are bound to learn the trade, understand the trade, learn the different tools for the trade and
Francis Reyes
most of all became artistic in the trade.
Forex Trader / Analyst President Art of Forex
What we envision in a very short time is
freyes@artofforex.org
Art of Forex growing and reaching out to the workd with the simple fact, that we
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have to mold forex artistic traders. We do welcome all who want to join us, share with us and travel with us through this journey. Together we can create a magnificent masterpeice that can stand the test of time.
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2014
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FOREX TRADING
ONLINE TRAINING PROGRAM
2014
A Program that you can follow As part of the program, understanding the different factors and
Art of Forex has devote over 8 years of experience a collection of vital information. A trader need to be hollistic and understand
tools gives the trader the edge to perform very well in the market.
the market in a more active
We devote in this section the understanding of the most used
and logical approach. We have
indicators. These indicators are very well know and its information gives the analyst and trader a wide range of information. Follow us
created a two part strategy, one is call the 4 Dimension Trading Strategy and the other is the
as we talk about these indicators and if you would like to get more
Currency Matrix.
information about or how to get the education that you need visit
strategies follow a very stric rule,
us at www.artofforex.org artofforex.org
2014
Both of this
understand your enviorment and know your surrounding. 5
TRADER’S CORNER
GET THAT LEVEL
How Indicators Work
Essentials If you are hesitant to get into
the forex market and are waiting for an obvious entry point, you may find yourself sitting on the sidelines for a long while. By learning a variety of forex indicators, you can determine suitable strategies for choosing profitable times to back a given currency pair. Also, continued monitoring of these indicators will give strong signals that can point you toward a buy or sell signal. As with any investment, strong analysis will minimize potential risks.
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RSI – Overbought or Oversold Indicator A single –line oscillator plotted on a scale from 0 to 100, based on closing prices over a userdefined period. Common RSI period are 8, 14, and 21. RSI compares the strength of up periods to the weakness of down periods – hence, the label relative strength RSI reading over 75 are considered overbought ; reading below 25 are considered oversold. RSI signal are given when the indicator leaves overbought or oversold territory and on divergences with price.
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As momentum shifts, the %k line will
Stochastic
cross over the slower-moving %D line. Crossovers in overbought or oversold territory are considered sell or buy signals. Overbought is above 80, and oversold is below 20.
Stochastic – A two-line oscillator plotted on a scale of 0 to 100. The two lines are known as %k (fast stockastic) and %D (slow stockastic). Stockastics are also based on closing prices of prior periods. The basic theory behind stockastics is that the strength of a directional move can be
measured by how near the close is to the extreme of a period. In a uptrend, close near the highs for the period signifies strong momentum; a close in the middle or below signals that momentum is weakening. In a downtrend, the close of a period should be nearer to the lows for momentum to strengthen.
Note: The Instructor will lead you through a step by step example and explanation.
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2014
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MACD
(Moving Average Convergence/Divergence) Using MACD indicator you can identify the major trend and their reversals.
The first thing you have to do is to identify trend and their reversals. These major trend reversals provide very profitable opportunity for trading. MACD can detect trend direction and trend reversal by its centerline or zero line. In this centerline, the value is zero. Value is positive above centerline which is considered as a bullish region. Value of MACD line is negative below this centerline which is considered as a bearish region.
When MACD line is above this centerline, the trend is bullish, and the trend is bearish when MACD line (blue colored line) is below the centerline. When MACD line (blue colored line) crosses above this centerline then it is a bullish trend reversal and a very strong buy signal in favor of the trend. Inversely, it is a strong sell signal or an entry signal for short position when MACD line (blue colored line) crosses below the centerline.
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2014
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Fibonacci Retracements Fibonacci Retracements can also be
Fibonacci Retracements are ratios used to identify potential reversal levels. These ratios are found in the Fibonacci sequence. The most popular Fibonacci Retracements are 61.8% and 38.2%. Note that 38.2% is often rounded to 38% and 61.8 is rounded to 62%. After an advance, chartists apply Fibonacci ratios to define retracement levels and forecast the extent of a correction or pullback.
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2014
applied after a decline to forecast the length of a counter trend bounce. These retracements can be combined with other indicators and price patterns to create an overall strategy.
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Candlestick Chart
In the candlestick chart, the body in the middle indicates the range between the opening and closing prices.
In the candlestick chart, the body in the middle indicates the range between the opening and closing prices.
Generally speaking, if the body is black or red, then the currency closed lower than it opened; conversely, if the body is white or green, then the closing price is higher than the opening price.
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FX TIPS & TRICKS
Forex Market allows you to make money, even at 3 am! The Forex market has become an extremely popular venue for traders all over the world. Anyone with a computer and a good internet connection can trade the Forex market, making it accessible to artofforex.org
2014
almost anyone wanting to trade. And since there is as much as 5 trillion dollars traded daily in the Forex market it has very good liquidity. The Forex market is so vast no one entity can control the market
price for an extended period of time. So you can enter a trade in the Forex market feeling pretty comfortable that nobody is going to drive the market against you for the purpose of stopping you out. 11
Another advantage to the Forex market is that you can trade any time, day or night. There are major Forex markets around the world, in London, in Australia, in Japan, in the USA, and they are all open at different times of the day. So you can trade 24 hours a
day, 5 days a week. Trading begins on Sunday afternoon in the USA and ends Friday afternoon in the USA. Below I put a table for you to see when the markets are open. The US markets open at 8:00 AM EST causing an overlap for a couple of hours with the
Forex trading hours, Forex trading time:
New York
opens at 8:00 am to 5:00 pm EST (EDT)
Tokyo
opens at 7:00 pm to 4:00 am EST (EDT)
Sydney
opens at 5:00 pm to 2:00 am EST (EDT)
London artofforex.org
2014
opens at 3:00 am to 12:00 noon EST (EDT)
European markets, meaning they are both open at the same time. The end of the US market overlaps the opening of the Asian market. Because each market is open at a different time trading can be done 24 hours a day.
And so, there are hours when two sessions overlap:
New York & London
between 8:00 am —
Sydney & Tokyo
between 7:00 pm —
London & Tokyo
between 3:00 am —
12:00 noon EST (EDT)
2:00 am EST (EDT)
4:00am EST (EDT) 12
FX TIPS & TRICKS
Trade day or night, 24 hours a day, 5 days a week
FX TIPS & TRICKS
So if the markets are open 24 hours a day which time is best to trade? The simple answer is that you can trade any
There is more volume traded during the
time. However, certain
European market session than any other
times do offer more
session. In my experience the best trends
liquidity.
develop more often during the European session than during any other session.
But that doesn’t mean there aren’t plenty of good trading opportunities at
Franics Reyes & Robert Osorio, Forex Experts
other times. There are great trends that develop during all market hours.
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GETTING TO KNOW YOUR PLATFORM What kind of feedback can IronFX Global give us after the news of the alliance with FC Barcelona? With the announcement of this incredible partnership agreement, IronFX Global gains worldwide association (except for Spain), marketing and promotional rights for the use of the FC Barcelona (“FCB”) brand and players. The company will be providing to its clients who are at the forefront of the company agenda, with exclusive photographs, interviews and more from their favorite football players through the newly launched website fcb.ironfx.com. Clients will also have the opportunity to win tickets to incredible FC Barcelona football matches in Europe’s largest stadium Camp Nou, with ongoing IronFX Global promotions and incentives.
What kind of competitive advantages can IronFX Global see in the future with this new alliance? For a global firm like IronFX Global, partnering with the most successful football club in the world is the perfect match and evidences the leadership of IronFX Global in the worldwide online trading arena. Despite FCB’s long history of avoiding all artofforex.org
2014
corporate sponsors, IronFX Global fully complies the FCB strict partnership standards owing to its award-winning platforms and services combined with its phenomenal global reach. IronFX Global is the only broker in the world to obtain the exclusive Official Online Forex Partner to FC Barcelona. With an association of this level and quality, our clients can be confident that IronFX is indeed the Global Leader in Online Trading.
What does it mean to IronFX Global to maintain good relationships with its customers, consumers and clients? Client care is a dominating element of the IronFX Global philosophy. The company has a customercentric model that combines with bespoke trading functionality through its platforms and products to offer the best pricing, execution and liquidity. Daily market news feed and insightful research gives clients access to the best information and data to help them make informed and balanced trading decisions. IronFX Global clients can benefit from round-the-clock coverage delivered by one of the world’s largest and most accomplished client support networks.
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As a representative of IronFX, what can you mention about the products that IronFX provides? IronFX Global provides clients with full access to trade over 200 financial instruments. Clients wishing to trade currencies, commodities, indices and stocks (including forex, spot metals and a wide range of CFDs on equity indices, US and UK stocks and commodities) can do so with bestof-market spreads from just 0 pips. Access is just one click away using the IronFX Global unique 1 Account, 15 Platforms account functionality which has been developed in-house to satisfy beginner, intermediate and professional traders. But whilst our award-winning products and platforms have made forex trading more accessible to traders, we have evaluated these technologies are just one piece in a much larger puzzle. IronFX Global combines bespoke technologies with a personalised client service package in order to help clients make informed trading decisions. We offer exclusive daily research to clients provided by a world-class IronFX Global Strategy Team, including fundamental and technical and live broadcasts via the world’s most respected financial networks.
What is it that a customer looks for in a company that manages client accounts? Which should be the key questions? It should be noted that IronFX Global maintains segregated client accounts and does not manage client accounts on their behalf. When looking for a company that does manage client accounts, sound track record and industry recognition should be among the key factors to be taken into consideration.
IronFX is in the process of opening new offices in Latin America. What kind of growth can IronFX see in the future? The goal of IronFX Global is to become the number one forex broker in the world. We now have over 50 offices worldwide, and more than 1,100 employees providing support in 45 different languages. With clients in more than 180 countries, we already have a strong globally recognized brand and are looking in the next few months to expand even further. For 2014 we aim to open a further 30 new offices, and for our workforce to reach 1600 persons.
Could you elaborate a little more on how the Welcome Bonus works?
As account manager, could you discuss your experience in the IronFX workplace?
IronFX Global offers all new and existing clients the opportunity to participate in exciting ongoing incentives and promotions. One of these is the Welcome Bonus* (note: *terms and conditions apply). Eligible clients can receive an additional percentage of funds from the company during the promotional period with which to trade. In order to claim the Welcome Bonus, all the client needs to do is to set up an account with IronFX Global. For more information, just log on to our website www.ironfx.com and click on the bonus image!
IronFX Global fosters a fast-paced and innovative working environment, and comprises a team of energetic and ambitious individuals who reflect the company values in their commitment to excellence. The IronFX workplace is successfocused, with emphasis on continual innovations in new strategies and services. We have high standards in everything that we do, and our primary focus is on providing our clients with the finance industry’s best possible customer service. Account managers at IronFX Global operate with integrity in all areas of their work within a
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2014
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ironfx.com
company culture of teamwork, togetherness, commitment and appreciation.
What is the feeling of the Account Managers at central office of IronFX in Latin America to be part of a team as recognized in a global level? IronFX Global account managers here feel extremely proud to be bringing the best trading conditions to clients in Latin America. Our CEO Markos Kashiouris put it well when he said “in
Currency Broker Representative Fabian Bordel From IronFX Solid Trading
our expeditionary trips to Latin America, we quickly came to the realisation that there are virtually no global brokers covering the market on a dedicated long-term basis, as it is dominated by localised, often unregulated, small brokers that provide an inferior service to clients.� The local presence of IronFX in worldwide locations is an essential element of its mission to provide the best service to the end client. This unique approach differentiates and elevates IronFX from its competition.
For mor information please visit ironfx.com
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2014
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WORLD CURRENCY NEWS
Europe’s dance with deflation
Copyright Mira.com
For the last few years, Europe has gone thru a multitude of economic events. From the “greek drama” of almost no able to pay their dues, to an almost meltdown of Spain’s economy, Portugal, Ireland and Italy. Nevertheless Europa has shown a resilient of going down into to history of the wonderful economic project that could have been, and shown strength even in the darkest hours. artofforex.org
2014
Investors have again look to Europe as a reserve region, and the euro as a reserve currency where they can shield from the ongoing economic woes and geopolitical hustle. Although this gives an approval stamp to the Euro region; it also creates pressure to their economy. On a more local basis, unemployment continues to be very high in Europe, though not a major factor to the overall economy, and an aging
population; Europe is facing the same prospect that Japan is dealing at the moment. People are looking to save more than usual. For years Japan’s economy has been outwards more than inwards, and so far it has been working but now they are facing the deflationary residual. Europe is entering into the same realm, where its aging population is safeguarding from anotherrecession period where many suffer. 17
Last ECB press conference, President Draghi stated out that even though they are evaluating the case, it is still not on a crucial stages and they will take the necessary stages in order to avert any possibilities of deflation and its consequences. Though the international press wasn’t convince of his response, they kept asking him about it over and over.
Copyright John Stuart/Mira.com
So what does it mean for Europe and why is so worrisome? For starters, for a beaten economy in a need to go out and sell more of its products, a more competitive currency is necessary so it can compete with others and allow its products to be more accessible in any market. So far the latest is not happening, the euro is gaining on value against its counterparts, creating a value pressure an a
reversal in its economy. Talks of a quantitive easing have been on the way, a closer monitoring of the currency and its behaving in the market has been in the process, talks at the monthly press conference have been stated and most of all results have been pointing out that if Europe don’t act any time soon a deflationary stage is imminent. artofforex.org
2014
So far, the Euro has been gaining value against its counter parts as the days passes by. It doesn’t seem a limit to where the currency can achieve, the first psychological level at 1.3800 was retested and broken; investors are outweighing the importance of this event and rumors and sentiments are flying high because of this.
In the last few days, many of the central banks presidents that form the ECB have mention and outweigh this real problem. One by one they have voice their approval to fight this problem with all the tools in their hands. The ECB has in the next weeks various press conference and meetings, and many analyst are waiting for the action of the ECB to become a reality anytime soon. Failure to adopt any measure by the ECB will create a chain reaction in the world market that can be disastrous to the world economy. We have to remember that the Euro is the second most traded currency, and by large one of the three major currencies that many investors take refuge in. Our analysis indicates that this action will take place very soon as indicated before; since many indicators and results have pointed out that is progressing to a critical deflation point, and the ECB will take very drastic measures, something in the realm of the BOJ, which move very aggressively to take the path of inflation in order to become competitive in the market again.
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TESTIMONIALS FROM OUR LIVE TRADING SESSION
We have great followers and these are some of the comments that we wanted to share.
“Rare exceptions
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to find a live
wants to see Forex
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real money and
watch these pros
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Trading must see
Reyes delivers day
that makes the
doing a big news
where you they
them trade live”
in and day out”
difference with me.
days and follow
are consistently on
Currency trader for
them to the tea”
target”
4 months and have come out ahead every month. “
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ABOUT US
Art of Forex Key Members Robert Osorio Managing partner of Art of Forex Trading Academy. Based in Tampa, Florida. Over 8 years in currency trading, co-moderator in the Live Trading Session. Holds a degree in Mass Communications and has held positions as a technical analysis, technical trainer and International sales engineer.Has run other several based businesses.
Francis Reyes President of Art of Forex Trading Academy in Charlotte NC. He’s the creator of the 4D Trading Strategy and has devoted followers on his Live Trading Sessions. Mr Reyes is recognized as a top currency trader for many years. He has served in the International Monetary Funds (IMF) in Washington DC. Hold a Master in International Marketing with concentration in Finance from Strayer University. He’s the main moderator in the Live Trading Session. Speak multiple languages. freyes@artofforex.org 954.300.1049
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