Sunday, September 27, 2009

If you were to look at the forex chart below witho...


If you were to look at the forex chart below without knowing that it was a currency chart, you might have thought that it was a chart of a 124 dollar stock. The snapshot of the real time forex chart below shows the relationship between the U.S. Dollar and the Japanese Yen for a three month period. Each candle represents one day of price activity, with the last candle on the forex chart showing the current value of the dollar versus the yen (124.50 yen). Consequently, an investor that day trades stocks can easily adapt to forex charts. If he feels that the dollar will go up, he simply buys. Then, for the sake of simplicity, let's say that the candles on his chart start moving up (e.g., 125.00, 125.25, 126.10, etc.). This means his balance is positive.

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