Lines of trends, support and resistance

To draw a trendline only two points are necessary and the third one is the contact point confirmation.

On a bullish trend chart it should be drawn using troughs, on a bearish  using peaks. The trendline and a line which is about parallel to it and drawn on the opposite side (through peaks on a bullish trend and through troughs on a bearish) form the trade channel. Both lines are then channel's borders.
Lines of support and resistance. The upper and the bottom borders of trade channels are called accordingly support and resistance lines. The peaks represent the price levels at which the selling pressure exceeds the buying pressure. They are known as resistance levels. The troughs, on the other hand, represent the levels at which the selling pressure succumbs to the buying pressure. They are called support levels. In an uptrend, the consecutive support and resistance levels must exceed each other respectively. The reverse is true in a downtrend. Although minor exceptions are acceptable, these failures should be considered as warning signals for trend changing.

The significance of trends is a function of time and volume. The longer the prices bounce off the support and resistance levels, the more significant the trend becomes. Trading volume is also very important, especially at the critical support and resistance levels. When the currency bounces off these levels under heavy volume, the significance of the trend increases.
The importance of support and resistance levels goes beyond their original functions. If these levels are convincingly penetrated, they tend to turn into just the opposite. A firm support level, once it is penetrated on heavy volume, will likely turn into a strong resistance level. Conversely, a strong resistance turns into a firm support after being penetrated. In general, to evaluate the reliability (that is the possibility of a break) of the trade channel borders taking a decision to close or to save an existing position one should govern himself with following rules:

1. A channel is the more reliable the longer it exists. Hence, the solidity of very old channels (e.g. existing more than 1 year) decreased sharply.
2. A channel is the more reliable the more is his width.
3. The resistance may be broken if it is bounced on the background of a growing volume.
4. A steep channel is less reliable in compare to a gentle one.
5. The support may be broken independent on the volume.

[ForexGen Demo Accounts Contest]

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[ForexGen] has the pleasure to announce the launching of the Demo Account contest on the first of every month.

Interested clients who wish to participate in this event shall send an e-mail request on demo.contest@forexgen.com including the following information:
- Full name: - Phone number

Also provide us with the following identification document:
" Certified copy of the information pages of account holder current valid passport or government issued photo ID"
After we receive your request we will provide you with further details and with your [demo account] login information which will be used in the trading contest.

By the end of each contest:

1. All participants that manages to open at least 20 lots will be awarded a Live Account with $50 credit 2. All participants that manages to open at least 20 lots and keep their demo account initial balance will be awarded a Live Account with $100 credit 3. The highest 5 accounts with the highest profits (including the floating P/L) will be awarded a Live Account with $250 credit.

The contest starts on the first Sunday of each month at 10 pm GMT and ends on the last Friday of that month at 10 pm GMT.

For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com

4 Tips For Choosing a Reputable Forex Broker

can attest to the specific broker's qualifications and success history.

Put yourself in that position, would you testify to someone's strengths if they did a poor job for you? Client history testimony should be present in any prospective Forex broker and plentiful to indicate a solid background with trading. You can tentatively assess a lot from a Forex broker with a list of clients that will speak up for the brokerage firm or individual broker. It should be noted that all word of mouth testimony should be taken with a grain of salt and dissected to collect the pertinent information. Testimony should be used in your research to find a Forex broker but should not be the deciding factor.

Another good morsel to test the reliability of any potential Forex broker is the amount of information, literature and lessons that they are willing to give to you. Most Forex brokers are of a high reputation and a solid background however, there are many out there that don't have a good history or no history and it is wise to steer clear of these brokers. You are trying to find a trusted financial advisor and settling for second best, just won't do. The more a potential Forex broker is willing to do for you in the area of helping you understand the Forex trading system, the better quality trader they will be for you.

A good avenue to travel down when seeking a good Forex broker is to ask your acquaintances about Forex brokers and how they met. This can not only give you prospective referrals to great Forex brokers but will also equip you with ideas and resources that you may not have located. If you get a referral from friends, be sure to still research that specific broker and his qualifications before committing to any formal agreement.

The other factor in finding a good Forex broker is the margin of return that is offered. A Forex trading margin used to influence your money and many Forex brokers offer different margins. Finding a Forex broker, who gives a margin of ten to one isn't a very good find so it's worth the time to reinvest in research. Remember that this industry is all about customer service and catering to the clients so if your prospective Forex broker doesn't return your calls within a reasonable time frame it would be advisable to keep searching.

[ForexGen Academy]

If you are an experienced ‘FOREX’ Trader or just a beginner looking for the opportunities offered in the ‘FOREX’ market, [Forexgen] has created ForexGen Academy to give you the chance to get a ‘FOREX’ education and improve your trading skills. No hard expressions, no buzz words, and no rocket science language are used throughout these lessons.
How to Get Started?

People are introduced to the exciting world of foreign exchange in many ways: friends, current events, newspapers, television, and many others. For those of you who are new to forex, the following guidelines cover the basics of currency trading.

also do you Know ForexGen Lowest spreads in the market with 0-1 pip spread in 10 pairs, no commissions, no swaps and instant account Activation.

Selecting the Right Forex Broker

1) Is the broker I want to use regulated? This is the first question you should be asking yourself and there should be no doubt that they are. All regulated brokers are required to submit financial reports to regulatory authorities. Failing to do so can cause authorities to fine brokers or even end their membership. These rules force Forex brokers to keep financial reports.
Each broker is regulated by local regulatory authorities. For instance, if a broker is based in the United States, they're regulated by the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). Swiss brokers, however, are regulated by the Swiss Federal Department of Finance (FDF). Using a regulated broker also protects investors because they're able to dispute resolutions.

2) What are the trading conditions like? This question refers to the trading conditions and special features of the trading platform with a Forex broker. Some of the most important factors include:

-Spread - The smaller the spread on currency pairs, the more favorable the conditions are for both traders and investors.
-Platform Execution - This term refers to how quickly and consistently the trades are executed. Many brokers promise fast, transparent executions during normal market conditions.
- Fractional Trading - Some brokers may allow investors and traders to trade on a fractional basis. For example, rather than allowing you to trade full lots of "100,000 units," they let you trade "163,345 units," which is helpful when you're making trades that risk a certain percentage of the balance on each trade.
-Safety of Funds - It's important to make sure that your trading funds are placed in a segregated account or, at the very least, insured for safe

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

Moving Average Convergence Divergence (MACD) Momentum Indicator

The MACD is based on three moving averages, however, they essentially show up as being only two lines.

The 8  period and the 17  period moving averages are combined to form the faster-moving average line. The 9  period exponential moving average forms the slower-moving average. In your daytrading strategy, the MACD moving average lines can be read for three pieces of information to give you the buy and sell signals you need for successful trades.

The first type of buy and sell signal you get from the MACD is called a breakout. This breakout is signified by the faster-moving average crossing the slower-moving average. If you were to examine a MACD chart, you would see a few places where this is happening. Like we talked about earlier, when the faster-moving average line crosses the slower-moving average line on the way up, you’ve got a bullish signal. Conversely, when the faster-moving average line crosses the slower-moving average line on the way down, you’ve got a bearish signal. That’s a breakout. There are some traders who will enter or exit a trade based when the line crosses, however, keep in mind that by doing so, you could limit potential profits and take on additional losses.

The second type of buy and sell signal we can get from the MACD is to test for support and resistance. When you’re day trading stocks, you might be told to trade on the cross, but here is something you can add to your strategy instead of just blindly trading at the cross. What you can do is check to see if the indicator lines are moving in the same direction and test the indicator line as being a support or resistance line after the cross.

The last type of buy and sell signal we can get from the MACD is divergence information. When the fast- and the slow-moving average lines move away from each other, the mound on the chart expands. As these lines draw near to each other, the mound shrinks. That is called divergence. Divergence is an important day trading tip that can strengthen your position on a trade if read correctly.

[ForexGen Promotions]

As ForexGen believes that its success depends totally on its client's satisfaction and success, ForexGen is sharing its growth and new site release with wonderful promotion packages.

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Forex Swing Trading with Elliott Wave

In technical analysis, just as in fundamental analysis, there are lagging indicators and leading indicators. One of the most reliable tools used to predict forex market swings is Elliott Wave analysis. Elliott Wave analysis can be used to identify trends and countertrends, trend continuation or exhaustion and to evaluate the potential price targets of a trend.
You can apply Elliott Wave analysis to both long and short position swing trade set ups for your currency pairs.
Elliott Wave theory is named after Ralph Nelson Elliott, who concluded that the markets moved in a repetitive pattern of waves. He attributed this action to the mass psychology of the market.
Elliott concluded that the market¡¯s movement was a direct result of the mass psychology of the time and that the stock market is a fractal. A fractal is an object that is similar in shape, but at different scales. A great example of a fractal in nature is a stalk of broccoli. The stalk and the individual branches look exactly the same; just the branches are smaller in scale.

Fractals just happen to form in accordance with Fibonacci ratios. Is this a coincidence?

Elliott attributes this mass psychological move to the human trait of herding. Even though Elliott¡s theories were based on stock market price movements, it has been applied to evaluating Presidential approval ratings and fashion trends changes as well.

[ForexGen Services]

Client Services

• Customer Support
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ForexGen Partnership

ForexGen offers three types of business partnerships.

* [Introducing Broker]
* [White Label]
* [Money Manager]

ForexGen Introducing Brokers ,White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a large income sharing plan.

[ForexGen] provides appropriate services satisfying the needs of all business partner's specified situation and requirements.

Forex Trading - a Simple Tip to Increase Your Profits and Reduce Your Effort Instantly!

I have been a Forex broker, taught Forex and been in contact with several thousand traders.

The enclosed tip is simple one the vast majority of traders I have come into contact with don't understand - but if they did, the tip would increase their profits dramatically.

The tip is based on the 80 - 20 rule which is used in a wide variety of areas of life for example, in business it says 80% of your profits will normally come from just 20% of your clients. In Forex terms it means - 80% of your overall profits will come from just 20% of your trades.

The reality is that most Forex traders take far too many trades, if they cut back on their trading frequency and only hit high odds trades their profits will increase dramatically.

They hold the following beliefs which are simply not true

- They can make money by scalping or day trading
These short term trades are low odds trades in fact - the odds are you will lose, as you are trading the market noise.
- They need to be in the market just in case they miss a move
If course this is rubbish, you can spot a move and enter when the time is right!
- The harder the work and the more trades they make the more money they will make
The work ethic doesn't apply in Forex; many people think with effort they can force money from the market and they lose.


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Free cash bonus when you open your new live account withen the next 30 days. You will recieve a FREE cash bonus which will be added to your trading account. The cash bonus depends on the account type you open.

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To be able to withdraw your free cash bonus, you need at least to open 20 trading lots in period not exceeds 3 months.For more information about our current and future promotions, contact one of our [customers support] agents at promotions@forexgen.com

One Of The Major Indicators: Current Account

Measure of the country’s international trade balance in goods, services and unilateral transfers. The level of the current account,as well as the trends in exports and imports, are followed as indicators of trends in foreign trade. U.S. trade with foreign countries hold important clues to economic trends here and abroad. The data can directly impact all the financial markets, but especially the foreign exchange value of the dollar.

[ForexGen Live Account]

The live/real account is provided to those clients who may have some experience in the online trading.

[Opening an Account Online]

The quickest, easiest and secure way to open a ForexGen trading account is online.
Complete and submit your application online in just a few minutes.

ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

Best Forex Brokers

Below are the online forex brokers that are highly recommended. Why do we highly recommend these forex brokers? Well, first of all we don't. The retail forex traders of the world do. Our opinion plays no role in deciding which brokers make this list. See our notes below the list for details on how this list was compiled.

There are 12 online forex brokers on this list and we have over 220 brokers identified on this web site. This is therefore, in the collective opinion of the world's retail forex traders, the cream of the crop, the top 5%. While we do believe these are the best, there are still positives and negatives among those in this list so we urge you to read about them in more detail and do your own due diligence before entrusting your hard earned money with any of them. You may also want to check out our Recommended Forex Brokers List, our Top Rated Online Forex Brokers List, which currently includes more than 115 online forex brokers along with their independent trader ratings, and our Most Popular Online Forex Brokers List.

[ForexGen Demo Accounts Contest]

Win Cash Prizes

[ForexGen] has the pleasure to announce the launching of the Demo Account contest on the first of every month.

Interested clients who wish to participate in this event shall send an e-mail request on demo.contest@forexgen.com including the following information:
- Full name: - Phone number

Also provide us with the following identification document:
" Certified copy of the information pages of account holder current valid passport or government issued photo ID"
After we receive your request we will provide you with further details and with your [demo account] login information which will be used in the trading contest.

By the end of each contest:

1. All participants that manages to open at least 20 lots will be awarded a Live Account with $50 credit 2. All participants that manages to open at least 20 lots and keep their demo account initial balance will be awarded a Live Account with $100 credit 3. The highest 5 accounts with the highest profits (including the floating P/L) will be awarded a Live Account with $250 credit.

The contest starts on the first Sunday of each month at 10 pm GMT and ends on the last Friday of that month at 10 pm GMT.

For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com

Insider Tips to Choosing the Best Forex Broker

Having the best Forex broker to help you trade at the Forex market is very crucial. Without a competent Forex broker, your trading efforts could lead to disastrous results. This is especially true if you're just starting to venture into online Forex trading. You will need all the help you can get to grasp the intricacies of trading currencies.

Learn what to look for when searching for a forex broker.
Forex brokers are valuable to those that wish to enter into a forex currency trading. With the advent of online businesses assisted by the technology of the Internet, online forex brokers are popping up like plants in the World Wide Web because of the ease and inexpensive ways of establishing a corporate appearance. If you are a novice forex trader, you need a very good broker at your side. However, with so many of them to choose from, what should you look for in a broker?

The Dos and Don'ts of Shorting the Market:
While often considered a dangerous position, shorting can be a very lucrative trading position if you know what you're doing. This article contains some very basic but crucial Dos and Don'ts for shorting in the markets.
Are Moving Averages Really Simple to Use? Posted By: Leroy Rushing
moving averages are used by amateur and professional traders alike for very rewarding results. Finding moving averages that work for you might be a difficult task, but after finding the perfect pair, moving averages provide huge results with little work. Master the identification and use of moving averages and anticipate a long career in trading.

[ForexGen Academy]

If you are an experienced ‘FOREX’ Trader or just a beginner looking for the opportunities offered in the ‘FOREX’ market, [Forexgen] has created ForexGen Academy to give you the chance to get a ‘FOREX’ education and improve your trading skills. No hard expressions, no buzz words, and no rocket science language are used throughout these lessons.
How to Get Started?

People are introduced to the exciting world of foreign exchange in many ways: friends, current events, newspapers, television, and many others. For those of you who are new to forex, the following guidelines cover the basics of currency trading.

also do you Know ForexGen Lowest spreads in the market with 0-1 pip spread in 10 pairs, no commissions, no swaps and instant account Activation.

Nigeria Creates Ministry For Oil-Producing Region

Nigeria's president appoints new minister charged with pacifying oil-producing regionABUJA, Nigeria (AP) -- Nigeria's president appointed a new minister Tuesday charged with pacifying the southern region of Africa's largest oil producing country.

President Umaru Yar'Adua named former federal government secretary Ufot Ekaette as Niger Delta Affairs minister.
The ministry is charged with improving security, enhancing infrastructure and kick-starting development in the region that remains desperately poor in spite of over five decades of pumping crude. The ministry has a proposed budget of US$360 million (euro257 million) for 2009, though the figure has yet to be approved by the Senate.
Militants stage regular attacks on Nigeria's oil industry -- blowing up pipelines and kidnapping workers -- in hopes that the chaos will force the government to send more oil-industry funds to the impoverished region.
Attacks cut the country's oil production by about 1 million barrels a day in September. Before the attacks began in 2005, Nigeria was producing 2.5 million barrels a day.
The creation of the new ministry was seen as Yar'Adua's first step toward fulfilling his pledge of resolving the long-simmering crisis. That was 19 months ago when he took office, and he has since been accused of failing to deliver on inauguration promises.

The president appointed Ekaette, who is from the oil-producing state of Akwa-Ibom, amid an ongoing Cabinet shuffle.
Nigeria's Supreme Court earlier this month upheld his victory in the 2007 election, which observers had challenged as flawed.

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

Swiss Forex Brokers

People often hear the term "forex" but a lot of people do not understand what it is or what the letters actually stand for as an abbreviation. Forex is actually an abbreviation for the Foreign Exchange Market. It is an international market and gives people from all over the planet an opportunity to buy and sell stocks and commodities world-wide. Since it is indeed an international market, most people feel more comfortable finding a broker instead of doing the trading themselves in an unknown realm. It is wise to find a broker with the expertise you crave when handling your precious cash! These kinds of investors usually turn to a Swiss Forex broker for help and guidance and in our modern world; they often turn to the internet as their mode of contact.

Going online these days offer a rare opportunity to find whatever you need world-wide, in this case, a Swiss forex broker. The internet offers ease and quick resolution to finding such a broker. All one would do is log in, search for the Swiss broker of your choice and you have begun your journey into Swiss trading. We all have the impression, perhaps from movies and television, that the Swiss have a "corner" on the world market and have an inside track to making money quickly and easily that Americans do not possess Truth or fiction, no one knows for sure, but the perception draws people to the internet to search for a Swiss professional to help them invest their savings for future gain.

[ForexGen Promotions]

As ForexGen believes that its success depends totally on its client's satisfaction and success, ForexGen is sharing its growth and new site release with wonderful promotion packages.

*[Claim Your Bonus]
* [Live Account Contest]
*[ Demo Account Contest]
* [Refer A Client]
* [Scalping enabled Account]

Forex Scalping Success

If you want to catch the big profits in forex trading you need to trend follow forex trends which are longer term. Here we are going to give you a 3 step simple method which if you use it correctly, will help you catch every major forex trend and lead you to long term currency trading success.

Most novice traders don't bother trying to trend following forex longer term - instead they try forex scalping or day trading. These methods focus the trader on small moves and they hope to catch small profits however as most short term moves are random, this leads to equity wipe out.
The other choices are swing trading and long term forex trend following and this article is all about the latter method. If you look at any forex chart, you will see long term trends that last for months or years. These moves can and do yield big profits - here we will outline a simple method to catch them.


Breakouts
By far the best way of catching the big moves is to use a forex trading strategy based around breakouts. A breakout is simply a move on a forex chart where a new high or low is made and resistance or support is broken.

It's a fact that most major moves start from new highs or lows.
While it might appear that you are not buying or selling at the best level, you are in terms of the odds of the trend continuing. Most forex traders make the mistake of waiting for the breakout to come back and get in at a better price but these traders never get on board. The reason for this is if a breakout occurs, then you have a new strong trend and a pullback is not very likely to occur.

[ForexGen Services]

Client Services

• Customer Support
• Trading Support

ForexGen Partnership

ForexGen offers three types of business partnerships.

* [Introducing Broker]
* [White Label]
* [Money Manager]

ForexGen Introducing Brokers ,White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a large income sharing plan.

[ForexGen] provides appropriate services satisfying the needs of all business partner's specified situation and requirements.

Understanding Forex Spreads

Forex is always priced in pairs between two different types of currencies. When you make a trade, you have to buy one currency and sell another at the same time. If you want to exit the trade, you must buy/sell the opposite position. For example, when you think the price of the Euro is going to rise against the US Dollar. In order for you to enter a trade, you will have to buy Euros and sell US Dollars.

If you want to leave the trade, you will have to sell Euros and buy back US Dollars. You will be hoping that you were right in your guess and that the exchange rate for EU/USD has actually risen, which means that you will get more Euros back than when you bought them, which is how you will make a profit.

These days just about every forex broker is claiming to have the tightest spreads in the industry. But marketing does have the ability to be deceiving. The topic of spreads in the forex spot market is very complicated and often not easy to understand. However, nothing affects your trading profitability more

[ForexGen White Labels]

Forex White Label partnership allows the trader a quick access to the online foreign currency exchange market.

ForexGen provides two types of trading White Label partnerships, a limited and a full solution. ForexGen different types of forex White Label partners are able to access ForexGen's trading platform entirely branded under each partner's unique company image and name. We provide a customizable online trading platform for the different types of the two White Label solutions.

[Full White Label]

We provide 'full White Label partnership' to match the needs of the regulated companies and organizations that have a legal authorization to hold clients' funds. Our online trading platform is the most qualified online trading software in addition to an experience based infrastructure, but the full White Label partner is responsible for all administrative work and of all contact with their clients, i.e. opening of accounts.

[Limited White Label]

Limited White Label partners are also offered to access our customized online trading platform but their customers have to open a direct forex trading account with [ForexGen] Investments. Consequently, limited White Label partners could be not regulated by a financial authority as they will not hold customers' funds. This service permits the customer to manage his trading actions freely without vast administrative paperwork.

Volume surges in CME products for 2004

The Chicago Mercantile Exchange (CME) said 2004 marked the fifth consecutive year that volume on futures transactions reached record levels, with electronic trading and currency contracts playing a significant part in the growth.
The nation’s largest futures exchange posted annual volume of more than 787 million contracts, with average daily volume up 26 percent year-over-year to more than 3.1 million contracts. Volume on the CME Globex electronic trading platform surged 71 percent on the year to more than 451 million contracts, with average daily volume of nearly 1.8 million.
In a statement, the CME said it set annual volume records in all major groups. Average daily volume in its interest rate products hit more than 1.7 million contracts, up 38 percent from last year. Eurodollar trading on CME Globex grew from 150,000 contracts per day during the first quarter to 855,000 per day during the fourth quarter — representing 72 percent of total CME Eurodollar volume.
“The continued growth in electronic trading — which reached 67 percent of total volume during the fourth quarter — plus our expansion overseas through the successful execution of a number of strategic initiatives, have made our markets more accessible globally to a broader range of market users,” said Chicago Mercantile Chairman Terry Duffy in a statement.
“What we accomplished in 2004 demonstrates the effectiveness of our growth strategy and lays the groundwork for further progress in 2005.” Despite the normal year-end slowdown, the CME said overall fourth fourthquarter trading activity remained strong, with average daily volume of
almost 3.1 million contracts, up 33 percent from the same period in 2003.
Leading the increase was a 79 percent rise in foreign exchange trading, averaging 252,000 contracts per day, and a 42 percent jump in interest rate products, averaging more than 1.65 million contracts per day. Average daily volume for December was more than 2.8 million contracts, up 27 percent from year-ago levels. CME foreign exchange products had the highest volume month ever, with more than 312,000 contracts per day, up 84 percent from December 2003. Interest rate products grew 29 percent and commodities grew 21 percent compared to the same month a year ago.
Overall electronic trading on CME Globex was up 99 percent in December compared to year-ago levels.

[About FOREXGEN]

ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

Trading glossary

Dark Cloud Cover -- A 2-bar candlestick reversal pattern. The first bar draws a tall rally candle.
The next candle gaps up but closes well within the range of the prior bar.
Descending Triangle -- A common reversal pattern that forms from a descending upper
trendline and a horizontal bottom support line.

Dip Trip -- A trading strategy that buys pullbacks in an active bull market.
Doji -- A 1-bar candlestick reversal pattern in which the open and close are the same (or almost
the same) price and the high-low range is above average for that market.
Double Bottom (DB) -- A common reversal pattern in which price prints a new low, reverses into
a rally and returns once to test it before moving higher.
Double Top (DT) -- A common reversal pattern in which price prints a new high, reverses into a
selloff and returns once to test it before moving lower.
Dow Theory -- Observations on the nature of trend by Charles Dow in the early 20th century. It
also notes that broad market trends verify when the three major market averages all move to a
new high or low.
Electronic Communications Networks (ECNs) -- Computer stock exchanges that rapidly
match, fill and report customer limit orders.
Elliott Wave Theory (EWT) -- A pattern-recognition technique published by Ralph Nelson Elliott
in 1939 that believes all markets move in five distinct waves when traveling in the direction of a
primary trend and three distinct waves when moving in a correction against a primary trend.
Empty Zone (EZ) -- The interface between the end of a quiet range-bound market and the start
of a new dynamic trending market.
Execution Trigger (ET) -- The predetermined point in price, time and risk that a trade entry
should be considered.

Execution Zone (EZ) -- The time and price surrounding an Execution Target that requires
undivided attention in order to decide if a trade entry is appropriate.
undivided attention in order to decide if a trade entry is appropriate.
Exhaustion Gap -- A classic gap popularized in Technical Analysis of Stock Trends that signals
the end of an active trend with one last burst of enthusiasm or fear.
Fade -- A swing strategy that sells at resistance and buys at support.
Failure Target -- The projected price that a losing trade will be terminated. The price at which a
trade will be proven wrong.
Farley's Accumulation-Distribution Accelerator (ADA) -- A technical indicator that measures
the trend of accumulation-distribution.
Fibonacci (Fibs) -- The mathematical tendency of trends to find support at the 38%, 50% or 62%
retracement of the last dynamic move.
First Rise/First Failure (FR/FF) -- The first 100% retracement of the last dynamic price move
after an extended trending market.
Finger Finder -- A trading strategy that initiates a variety of tactics based upon single bar
candlestick reversals.

5-8-13 -- Intraday Bollinger Bands and moving average settings that align with short-term
Fibonacci cycles. Set the Bollinger Bands to 13-bar and two standard deviations. Set the moving
averages to 5-bar and 8-bar SMAs.
5 Wave Decline -- A classic selloff pattern that exhibits three sharp downtrends and two weak
bear rallies.
Flags -- Small continuation pattern that prints against the direction of the primary trend.
Foot in Floor -- Bollinger Band pattern that indicates short term support and reversal.
Fractals -- Small-scale predictive patterns that repeat themselves at larger and larger intervals on
the price chart.

Gap Echo -- A gap that breaks through the same level as a recent one in the opposite direction.

Hammer -- A 1-bar candlestick reversal pattern in which the open-close range is much smaller
than a high-low range that prints well above average for that market. The real body must sit at
one extreme of the high-low range to form a hammer.

Harami -- A 1-bar candlestick reversal pattern in which the open-close range is much smaller
than the high-low range and sits within the real body of a tall prior bar.

Hard Right Edge -- The location where the next bar will print on the price chart. This also points
to the spot where the swing trader must predict the future.

Head and Shoulders -- This classic reversal pattern forms from an extended high that sits
between two lower highs. Three relative lows beneath the three highs connect at a trendline
known as the neckline. Popular opinion expects a major selloff when the neckline breaks.

Head in Ceiling -- Bollinger Band pattern that indicates short-term resistance and reversal.

Historical Volatility -- The range of price movement over an extended period of time as
compared to current activity.
Hole in the Wall -- A sharp down gap that immediately follows a major rally.

Inside Day -- A price bar that prints a lower high and higher low than the bar that precedes it.
Inverse Head and Shoulders -- This classic reversal pattern forms from an extended low that
sits between two higher lows. Three relative highs above the three lows connect at a trendline
known as the neckline. Popular opinion expects a major rally when the neckline breaks.

January Effect -- The tendency for stocks to recover in January after end-of-year, tax-related
selling has completed.

Market Numbers – Price levels based on multiples or fractions of 10 that act as support or
resistance. Common market numbers include 5, 10, 20, 25, 30, 50, 100.
Moving Average Convergence-Divergence (MACD) -- A trend-following indicator that tracks
two exponentially smoothed moving averages above and below a zero line.

Mesa Top -- A double top reversal pattern that declines at the same angle as the initial rally.

Moving Average Crossover -- The point where a moving average intersects with another
moving average or with price.
Moving Average Rainbows (MARs) -- Wide bands of mathematically related and color-coded
moving averages.
Narrow Range Bar (NR) -- A price bar with a smaller high-low range as compared to the prior
bar's high-low range.

Narrowest Range of the Last 7 Bars (NR7) -- A low volatility time-price convergence that often
precedes a major price expansion. A price bar with a smaller high-low range as compared to the
prior six bars high-low ranges.

NR7-2 -- The 2nd NR7 in a row. A low volatility time-price convergence that often precedes a
major price expansion.
Neckline -- A trendline drawn under the support of a Head and Shoulders pattern over the
resistance of an Inverse Head and Shoulders pattern.
Negative Feedback -- Directionless price action in which bars move back and forth between
well-defined boundaries.
Noise -- Price and volume fluctuations that confuse interpretation of market direction

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2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.

how to figure out the value of a pip for any currency pair

As a new Forex trader, one of the most important things you will need to learn is how to figure out the value of a pip for any currency pair. A pip is the smallest measure of value in a currency pair in Forex, so it's critical that you understand this concept.
When someone is saying "30 pips," they're talking about thirty units of value in a trade. Both profits and losses are measured in pips, though a pip for USD/JPY is not the same value as a pip for USD/CAD.
The simplest way to put it is this: one pip is one unit of the smallest measured decimal place. For example, if you are trading USD/JPY at 114.95, then one pip is .01 Yen, since that is the smallest decimal place of measurement used in this pair. The JPY is measured in two decimal spaces, although almost all other currencies are measured in four decimal places.

This does vary, which is why you always want to check on each individual currency to figure out what the pips actually are. For example, if the USD/CAD is trading at 1.0621 CAD than a pip for this transaction is .0001 CAD.

If you trade AUD/USD while it's at 1.2433, then one pip for this trade is .0001 since that combination has four decimal places, as well. See how that works? Like many parts of Forex trading, it is pretty easy once you get used to it.
So if the USD/JPY is quoted to only two decimal places, so Yen .01 is the value of this pip. If this pair goes from 114.95 to 115.00, it gained 5 pips. Likewise, if the USD/CAD goes from 1.0621 to 1.0611, it lost 10 pips. That simple math is all that's needed at that point. So if USD/JPY went from 88.25 to 88.29 that would be a 4 pip increase.

On the other hand, if it went from 88.25 to 87.90, that would be a 35 pip loss. The math might seem a little daunting at first, but it really is just ordinary math an easy enough to pick up on.
As a side note: many non-Yen currencies are figured out four places, making many pips involving USD in the currency pair .0001, but just remember that a pip is one unit of the furthest listed decimal point and you'll do fine. This also means that for each currency pair the pip can be a different value. You will want to keep track of this.

[ Why ForexGen? ]

1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.

Understanding Pips In The Forex Market

A point in Forex trading is referred to as a "pip". It is the last decimal place of a price quote.
Currency pairs are usually traded in standard Lots, which are equivalent to 100,000 units of the top currency in a pair.
For example, 1 Lot of GBP/USD is eqivalant to 100,000 pounds. Standard lots can be traded in “mini” versions (0.1) and are equivalent to 10,000 units of the top currency pair.
Since the currency that is on the top of the price quote changes, i.e. 1 Lot of GBP/USD (100,000 Pounds) is worth more than 1 Lot of USD/CAD (100,000 Dollars), the value of a pip changes. Also, the size of a position will affect how much each pip is worth.
Pip spread is short for "percentage in point" and you may sometimes hear people refer to pips as points.

Put simply, a pip is the smallest unit of price for a currency. It's the last decimal point in exchange rates or currency pairs.
For most currencies its 0.0001. So if you bought USD/CHF 1.2475 and sold at 1.2489 you made 14 pips.
One common exception is USD/JPY. In this currency pair there are only two decimal places so a pip is equal to 0.01.
The reason pips are so important is because they are the basis for calculating profit or loss in forex trading.

Pip spread Value.

With all these different currency pairs to deal with and with prices fluctuating all the time, how do you know the value of a pip?
It's a simple calculation.
For currency pairs in which USD is the base currency, just divide a pip (usually 0.0001) by the exchange rate.
For currency pairs in which USD is the quote currency, its even simpler. The pip value is always one pip (for example, 0.0001).
So in our example above, when the exchange rate for USD/CHF is 1.2489:

0.0001 / 1.2489 = 0.0000800704
That's a pretty tiny number.
But remember that in forex Pip spread trading you are able to leverage small sums of money to move large quantities of currency.

In other words, you can use leverage to make big profits off of that tiny number.
Let's say your forex broker allows you to trade with leverage of 100:1. This means that in order to buy a standard lot of $100,000, you only need to put up $1,000.
You can see how trading in larger lots affects the pip value, and therefore your profit or loss:

If you are only trading $1,000 in currency, the Pip spread value is calculated as follows:
0.0000800704 X 1000 = $0.08 per pip.
The price would have to go up by a whole lot of pips in order to make a significant profit at that rate. That 14 pip profit only made you $1.12.
But by using leverage to buy a lot size of $100,000 your profit increases.
0.0000800704 X 100,000 = $8.01 per pip.
That's a profit of $112.14.

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How to Profit from Currency Exchange Trading

The profit you will gain or the loss you will incur from a currency trade is determined by the pip. A pip spread represents the smallest step by which a currency's price moves in either direction. Depending on the currency pair the value of the pip varies. Additionally, the exchange rate of the currency pair represents a factor influencing the pip value.
When there is an open position, depending on the currency you have bought or sold, an upward or downward movement of the pip determines the occurrence of a profit or loss. A fixed value of $10 is set when the US dollar is the counter (quote) currency. On the other hand, if the US dollar is the base currency, the pip value varies in accordance with the current market rates.
Estimating pip spread Value

If you use the services of a trustworthy broker, then the option of getting real time information on the profits and losses from currency trades can be provided. It is recalculated every time the exchange rate changes. However, in order to get the best of this information, you should gain knowledge on how the actual calculations are done.
Depending on the base currency, the following calculations are executed.
Case 1: The base currency is the US dollar
For USD/CHF the current exchange rate is 1.1782. This means that one dollar is equal to 1.1782 Swiss francs. Thus, the value of $100,000 is equal to 117,820 Swiss francs. An increase of the pip value by one will result in a market price of 1.1783. This will lead to $100,000 being worth 117,830 Swiss francs.

Therefore, a one pip movement is worth 10 Swiss francs for 100,000 units of currency. In order to get the value of 10 Swiss francs at the new price you should divide 10 by 1.1783 (the new price). The result obtained is that 10 Swiss francs = $8.49. How is this result interpreted? If the trader decides to sell at this value, then s/he gets $8.49 profit for the 10 Swiss francs obtained.
Case 2: The counter currency is the US dollar
For EUR/USD the current exchange rate is 1.3616. This means that one euro is equal to $1.3616. Thus, the value of 100,000 euros is equal to $136,160. An increase in the pip spread value by one will result in a market price of 1.3617. This will result in 100,000 euros being worth $136,170.
If the trader likes the new price level, s/he may choose to close the position and sell the currency pair. S/he will pocket a profit of $10. However, if the trader has instead decided to sell the initial 100,000 euros at the price of 1.3616 and eventually the price has increased by one pip spread then s/he would incur a loss of $10 the minute s/he chooses to close the position.
Making a Profit from the Exchange Rate Movement
Case 1: Making a profit from a rising exchange rate
The following example provides an illustration of how profits can be gained from an increasing exchange rate.

John is a trader, who has decided that he is able of making a successful speculation with the currency pair EUR/USD. He believes that the value of the EUR is about to increase relative the value of the USD. This means that the exchange rate of this currency pair is to increase. As a result he buys EUR/USD pair at the current market price of 1.3616.
John will speculate on the value of 100,000 EUR in relation to the USD.
As mentioned above, the current market value of EUR/USD is 1.3616. Thus, 1 EUR is worth $1.3616. The corresponding value of 100,000 EUR is $136,160. When the transaction is finished, John will have to repay the amount of $136,160, which he has borrowed.
If John's expectations of an increased value of the EUR come true and it increases by 50 pips, then the new market rate will be 1.3666. At this higher market rate, John can choose to close the position and not only pay back his $136,160, but also obtain a profit.
The initial 100,000 EUR will be now worth 136,660. After repaying his debt, John will be left with $500, which represents his profit.
Case 2: Making a profit from a falling exchange rate
Profiting is not limited only to rising exchange rates of currencies. However, a clear determination of the exact currency pair to be traded should be made.
Let's refer to our previous example and explore the case in which the value of the EUR is expected to fall relative to the value of the USD. Under these conditions, John should order the selling of the EUR/USD pair.

John should borrow euros in order to purchase US dollars. With the proceeds he gets from the borrowing of 100,000 euros, he will be able to purchase US dollars.
From our previous example, 1 euro is equal to $1.3616. Thus, the borrowed 100,000 euros purchase 136,160 USD. The amount the trader has borrowed for the purposes of executing the transaction will be repaid when it is finished.
If the value of the EUR really falls by, let's say, 50 pips spread then the new market rate of EUR/USD will be 1.3566. At this new exchange level, John may decide to close the position and pocket the profit. He will have to repay the borrowed 100,000 euros, which have now decreased in value to $135,660. In order to get the acquired profit of $500, 135,660 are deducted from the initial value of the debt, namely 136,160.
To be successful at forex trading you need two main things - the knowledge and the right trading plaftorm.

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