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Strong Dollar Weak Dollar By www.TheForexNittyGritty.com

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http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar Strong Dollar Weak Dollar There is circularity to trading Forex which we refer to as strong dollar weak dollar. How to trade Forex is to buy the dollar when it is weak and sell when it is strong. This Forex trading strategy works in channel trading but not so well during long established trends. Accurate technical analysis of Forex pairs leads to profits. And trading based on what the market has been doing often leads to an adjustment of the market and a move in the opposite direction. To the extent that there are no major fundamentals driving the market there can be changes that beget changes, the strong dollar weak dollar effect. The question for a Forex trader is how to make money at such times. Technical Analysis and Profits Technical analysis of major Forex currencies is usually quite accurate. These currencies trade in high volume and excellent liquidity. As such technical indicators can be highly predictive. In order to profit a trader needs to follow the market closely and respond to usually small moves. A time honored system was developed for trading rice in Japan in the days of the Samurai, Japanese Candlesticks. The use of these patterns allows many traders to accurately predict changes in market sentiment. Traders benefit from candlestick patterns in Forex trading because they are based on real market history and are highly predictive of future trends. An example if the Doji signal. This nearly flat candle with upper and lower shadows of varying lengths tells us that the market is undecided. In a flat market this information is of little use. However, with the strong dollar weak dollar oscillation effect the Doji can tell a trader that an upward trend is about to head down and that a downward trend is about to head up. Numerous other Candlestick signals help predict market reversal. One reads the first part of a time tested pattern and can reasonably expect that the next part of the pattern will occur. During a strong dollar weak dollar oscillation these patterns can lead to tidy profits. Fundamentals And The Strong Dollar Weak Dollar Effect We have commented on these pages that the debt crisis in Europe can lead to a weaker Euro. This can in turn lead to increased exports from Europe, higher employment, and increased profits. The end result can be a recovered and higher Euro. The same applies to the Yen, British Pound, or any other major currency. The strong dollar weak dollar phenomenon is not limited to just the US dollar and is not limited to short term fluctuations. However, to profit from the strong dollar weak dollar effect in the realm of fundamentals one needs to do more than just a little homework. In addition it is important to see through the chaff of economic and fiscal policy and the tendency of central banks to manipulate the markets via bluff and bluster.

TRANSCRIPT

Page 1: Strong Dollar Weak Dollar

Strong DollarWeak Dollar

Bywww.TheForexNittyGritty.com

Page 2: Strong Dollar Weak Dollar

There is circularity to trading Forex which we refer to as strong dollar weak

dollar.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 3: Strong Dollar Weak Dollar

How to trade Forex is to buy the dollar when it is weak and sell when it is

strong.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 4: Strong Dollar Weak Dollar

This Forex trading strategy works in channel trading but not so well during

long established trends.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 6: Strong Dollar Weak Dollar

And trading based on what the market has been doing often leads to an

adjustment of the market and a move in the opposite direction.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 7: Strong Dollar Weak Dollar

To the extent that there are no major fundamentals driving the market there

can be changes that beget changes, the strong dollar weak dollar effect.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 8: Strong Dollar Weak Dollar

The question for a Forex trader is how to make money at such times.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 11: Strong Dollar Weak Dollar

These currencies trade in high volume and excellent liquidity.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 13: Strong Dollar Weak Dollar

In order to profit a trader needs to follow the market closely and respond

to usually small moves.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 14: Strong Dollar Weak Dollar

A time honored system was developed for trading rice in Japan in the days of the Samurai, Japanese Candlesticks.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 15: Strong Dollar Weak Dollar

The use of these patterns allows many traders to accurately predict changes in

market sentiment.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 16: Strong Dollar Weak Dollar

Traders benefit from candlestick patterns in Forex trading

because they are based on real market history and are highly predictive of

future trends.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 17: Strong Dollar Weak Dollar

An example if the Doji signal. This nearly flat candle with upper and lower

shadows of varying lengths tells us that the market is undecided.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 18: Strong Dollar Weak Dollar

In a flat market this information is of little use. However, with the strong

dollar weak dollar oscillation effect the Doji can tell a trader that an upward

trend is about to head down and that a downward trend is about to head up.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 19: Strong Dollar Weak Dollar

Numerous other Candlestick signals help predict market reversal.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 20: Strong Dollar Weak Dollar

One reads the first part of a time tested pattern and can reasonably expect that the next part of the pattern will occur.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 21: Strong Dollar Weak Dollar

During a strong dollar weak dollar oscillation these patterns can lead to

tidy profits.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 23: Strong Dollar Weak Dollar

We have commented on these pages that the debt crisis in Europe can lead

to a weaker Euro.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 24: Strong Dollar Weak Dollar

This can in turn lead to increased exports from Europe, higher

employment, and increased profits.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 26: Strong Dollar Weak Dollar

The same applies to the Yen, British Pound, or any other major currency.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 27: Strong Dollar Weak Dollar

The strong dollar weak dollar phenomenon is not limited to just the

US dollar and is not limited to short term fluctuations.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 28: Strong Dollar Weak Dollar

However, to profit from the strong dollar weak dollar effect in the realm of

fundamentals one needs to do more than just a little homework.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 29: Strong Dollar Weak Dollar

In addition it is important to see through the chaff of economic and

fiscal policy and the tendency of central banks to manipulate the markets via

bluff and bluster.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 32: Strong Dollar Weak Dollar

As such it is difficult to take advantage of the so called strong dollar weak

dollar effect in trading minor currencies.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar

Page 33: Strong Dollar Weak Dollar

Because most minor currencies only trade against the dollar, a stable minor can be traded with only the greenback

in mind, however.

http://www.theforexnittygritty.com/forex-trading/strong-dollar-weak-dollar