FOREX CLASSICS

Technical Analysis for Forex Profits

INTRODUCTION

Welcome to this eBook, and if this is your first exposure to Forex then welcome to the wonderful world of currency trading!. We have had this eBook put together to share with you the most commonly taught technical analysis methods used to trade the Forex markets. Many people charge hundreds of dollars for essentially the same information (actually much less info) presented via an eBook to thousands of dollars for a seminar, again teaching exactly the same stuff taught here in this eBook. We originally planned to sell this powerful eBook alone for $297 (still a fantastic bargain), but instead decided to give this eBook as a gift as part of our mission. Basically the only difference you'll find between what you'll learn in this eBook versus many of the seminars costing thousands of dollars (as much as $12,000) is that they just keep showing you more chart examples and variations to drill the concepts into your head. Other than that general difference the content is more or less the same.

It is our mission, as stated on our website, to bring the amazing life-changing opportunity of Forex trading out of the exclusive hands of the elite (rich people) and make it available to average people. Before we started sharing all our incredible eBooks the only way that you could have learned these awesome techniques was to cough up a few big bucks (thousands) to take a hard-to-find course. We've had tens of thousands of dollars worth of Forex training ourselves because we recognized the immense potential of trading Forex, and at the time no one was offering a lower cost way to learn (trust me, we would have killed to find a site like Rapid Forex to learn from back then). If you can afford to (or when you can) then certainly participate in one of those expensive seminars; yes, you'll learn a few things, but after having learned everything we at Rapid Forex have to offer you you'll find that the seminar will affirm to you that you already know a lot, more than you realized, and it'll boost your confidence in yourself as a trader.

This eBook is titled "Forex Classics" because it teaches the classical technical analysis techniques that are most commonly used worldwide for Forex trading. If this were to be the only learning tool you were to ever get your hands on then you would still know about as much, if not more, than many traders out there!

So start reading and enjoy this marvelous collection of Forex trading technique classics. We wish you tremendous success as a Forex trader, and in all areas of your life!

Brian & Robert

We dedicate this eBook to you, our readers. Thank you for allowing us to share our passion with you, and for reciprocating your appreciation back to us with all your enthusiastic compliments. You really are dear to our hearts. This eBook is our gift to the world.

TABLE OF CONTENTS

Introduction

Chapter 1: Introduction to the Forex

What is the Forex?

The game

Rules of the game 101: Forex market operation basics Staving in the game: practicing sound equity management See the field, know the plays: using charts to analyze the Forex market

Chapter 2: Trading on Japanese candlesticks

Doji candles

Spinning top candles

The Hammer, dragonfly doji, gravestone doji, and full body

candles

The morning star candlestick formation

The evening star candlestick formation

The tweezer top candlestick formation

The tweezer bottom candlestick formation

Rules for trading candlestick formations

Chapter 3: Support and resistance Highs

Levels of resistance Lows

Levels of support

Rules for Trading support and resistance levels

Past levels of resistance can become future levels of support

Past levels of support can become future levels of resistance

Chapter 4: Trends and trendlines

Finding your inner, outer, and long-term outer trendlines in

an uptrend

Trading trendlines in an uptrend

Finding your inner, outer, and long-term outer trendlines in a

downtrend

Trading trendlines in a downtrend

Rules for trading trendlines

Chapter 5: Buy and sell zones

The broken uptrend

Trading the sell zone

The broken downtrend

Trading the buy zone

Rules for trading the buy and sell zones

Chapter 6: Price swings and Fibonacci numbers

The uptrend price swing

The downtrend price swing

Leonardo Fibonacci's numerical sequence

Fibonacci numbers and uptrend price swings

Trading on Fibonacci numbers in an uptrend

Fibonacci numbers and downtrend price swings

Trading on Fibonacci numbers in a downtrend

Rules for trading on Fibonacci numbers

Chapter 7: The reversal and the King's crown

The uptrend (right-side-up) King's crown

The downtrend (upside-down) King's crown

Rules for trading a King's crown

Chapter 8: Sideways movement consolidation, and fundamental

announcements

Consolidation

Fundamental announcements

The breakout

The straddle trade

Rules for straddle trading

Trading inside consolidation

Chapter 9: Trading days and trending days

Trading days

Trading on a trading day

Rules for trading on a trading day

Trending days Trading on a trending day

Rules for trading on a trending day

Chapter 10: Fibonacci numbers and convergences

Fibonacci convergences in an uptrend

Fibonacci convergences in a downtrend

Rules for trading a convergence

Trading an uptrend

Fibonacci convergence

Trading a downtrend Fibonacci convergence

Successful traders vs. unsuccessful traders

Chapter 11: The Gartley

The Gartley

Rules for trading a Gartley

Chapter 12: Harmonic vibrations and beats

Market movement in beats

The value of a beat

The beat completion/trendline/Fibonacci convergence

Rules for trading a harmonic beat

Chapter 13: Trading pennants

Consolidation

Identifying pennants

Trading the pennant breakout

Rules for trading a pennant

Trading inside a pennant

Chapter 14: Trading indicators

Moving averages

The average price line

Moving average crossover

MACD

Stochastics

Rules for trading with math-based indicators

Chapter 15: Trading strategies

Six general steps to follow when planning a trade

Separating the successful traders from the unsuccessful ones

Six general strategies for trading in any market

The Beginning

Chapter 1: Introduction to the Forex

What is the Forex?

Forex, a short name for the foreign currency exchange, is a market in which currenciesare traded Specifically, traders in the Forex market are trading one currency against another. As in some other markets (commodities, for instance), there are several different types of actors in the game. Some actually buy and sell currencies, trading one against the other. The actors engaging in this kind of Forex market activity are very large banks and corporations as well as countries (the United States, for example, always holds a certain amount of other countries' currency in addition to its U.S. dollars). There are also options traders in the Forex market, just as there are in the commodities market, for example. Finally, there are speculative traders, the categoiy into which nearly all individual traders fall. As a speculative trader, you are not actually buying or selling currencies - you do not have to have $100,000 US. dollars in your bank account to give in exchange for $130,000 Euro dollars. Instead, you are speculating on the value of one currency with respect to another. You are, essentially, betting on which currencies will increase in value and which will decrease in value - you are betting on the actions of those players who are actually exchanging the currencies. While understanding the fundamental factors that contribute to the value of a country's currency is important for you, it is not nearly as important as understanding the factors that contribute to the major players' decisions. It happens to be that they are actively analyzing a country's fundamental factors and buying or selling its currency based on that information - but you don't need to be an economist or a political scientist to be a successful Forex trader - you do need to be able to recognize when the major players are making a move.

The point of this book is to help you do just that - to help you recognize movements by the major players that will change the value of one currency against another. If you learn to recognize these movements, you will be able to make sound bets on their effects on the price of a currency.

© 2005 Abundant Freedom LLC

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