Phase 1(Beginners class)

What is Forex
Practical definition of Forex
Basic Essential needs to venture into forex
The trading platforms
What is traded on in Forex
How forex transactions work
Forex Brokers and their functions
The concept of Bid and Ask/Spread
Basic Forex terminologies
Forex Trading sessions
How stoploss and Take profit work
Pips and lot sizes
How to use Mt4 and Mt5

WHAT IS FOREX

Theoretically, Forex is just an acronym for two(2) words: Foreign and Exchange, that makes it
Foreign Exchange.
The Foreign exchange market is said to be the largest online market in the world and can be
accessed from any location
The Forex market has a daily volume of up to $6.6 trillion. There are other markets like The
new york stock exchange market, even crypto market but in this class we'll focus on Forex only
because if you know how to trade forex you should be able to trade any other market so stick with
me..
Forex market determines foreign exchange rate for every currency. It includes all aspects of
buying, selling and exchanging currencies at current or determined prices.
Forex market can never shutdown as long as the world keeps exchanging, spending and making
money

Practically Forex brings to live a struggle and competition that doesn't exist.. That's why to me
(Khal_fx)I see Forex as a struggle between the Bull and The Bear
In Forex, currencies of two different countries are paired together on chart, one has the upward
movement of the market which is Bullish while the other has the downward movement which is the
Bearish
Since these currencies are paired and are said to be struggling, one is doing everything possible
to make the market go up in its favour while the other is trying to bring the market down in its
favour. But naturally these currencies don't know exactly what is going on.. Like, they don't know
about the struggle
 BASIS ESSENTIAL NEEDS TO VENTURE INTO FOREX

Let's look at the psychological needs first:

You need to know that trading involves risk, though this risk can be managed there are some
people who don't like risk at all.. Most mentors won't tell you this.. Anyways you have nothing to
worry about as we are going to learn exactly how to manage risk

You must be ready to work by practicing as much as possible.. Trading is not as hard as you
think, you just need the right strategy from a good mentor and a ready to learn and practice mindset

Forex is not a quick get rich scheme, you must understand that.. If making money from trading
is what you really desire I'm ready to take you through the step by step process because I don't want
you to make the same mistakes a lot of people make and end up giving up..

THE TRADING PLATFORMS

We have a great number of trading platforms, the likes of MT4, MT5, CTRADER, BLUEBERRY,
TRADE LOCKER, DX TRADE etc
some trading platforms are empty, just waiting to be filled, they're not useful until account is
linked to them. Example are MT4&MT5

Mt5 serves as the market square. You can't trade with just mt4, that's why most times if you just
download the app newly it will automatically create a demo account for you. If you need a live
account you will have to open it with a broker(we will talk about this) and link it to mt5. Also we
have our TRADING VIEW which mostly used for analysis in other to check the market flow or
movement to secure the best time to get or make entry into the market. It has a lot of tools for
drawing, mapping and forecasting..
So we only use TradingView for analysis because of its wide range of tools and flexibility.

WHAT IS TRADED ON IN FOREX?

This is one thing that makes the Forex market different from the physical market. Here we trade
on money.. In Forex, currencies of different countries are paired in twos for us to trade one against
the other and make money from that.
For example, the euro and the U.S. dollar (EUR/USD) or the British pound and the Japanese yen
(GBP/JPY)
Imagine each currency pair constantly in a “tug of war” with each currency on its own side of the
rope.
Exchange rates fluctuate based on which currency is stronger at the moment.
So what you do is to Buy the strong and sell the weak, this is just like saying ‘Buy when price goes
up and sell when it comes down.. I will explain better as we move.

The list below has major currencies and their countries

EUR/USD Eurozone / United States“euro dollar”

USD/JPY United States / Japan“dollar yen”

GBP/USD United Kingdom / United States“pound dollar”

USD/CHF United States/ Switzerland“dollar swissy”

USD/CAD United States / Canada“dollar loonie”

AUD/USD Australia / United States“aussie dollar”

NZD/USD New Zealand / United States

There are other more but these are the major currencies. The currency on the left is called Base
or Bullish currency and it has the upward movement of the market while currency on the right is
called Quote or Bearish currency, it has the downward movement of the market..

HOW FOREX TRANSACTIONS WORK

This is one thing a lot of people don't know even some pro traders..Things are in twos in the forex
market, like the currencies two are paired, market can go up or down, you can make profit or loss,
we have those who only buy and those who only sell..Now the thing is, two currencies are paired
together, one is assigned the upward movement of the market while the other the downward
movement..When you take a trade you're buying one out of the two currencies paired together and
Selling the other..

FOREX BROKERS AND THEIR FUNCTION

Forex Brookers are Firms that give Traders access to the FOREX MARKET..We already talked
about mt5. Forex Brokers will give you a live account where you link to mt5
Mt5 serves as the market square where all trading activities take place while your Broker account
serves as your bank account where all the money made from the market goes..
You can deposit money from your bank account to your broker account and yes you can withdraw
money from your broker account directly to your bank account..You can also deposit to brokers
through crypto, e-currencies etc.
Brokers won't charge you money for owning an account with them and trading with it except you
open an ECN account, we'll discuss this further when we get to Spread.
There are lots of Brokers including the bad ones but don't worry, at the end I'll recommend a broker
to you and also show you how to open a live account with them and how to link the account to mt4
incase you want to start trading while you learn from phase 2 of this course an example is Exness,
reliable and fast.
And the beauty of Forex is that one's profit doesn't affect the next person's... We'll all witness this
cus I'll be dropping signals from phase 2 so that everyone will trade and you'll see that everyone
that takes the trade with same lot will make the same profit which will further prove that even if a
million people trade forex in one house, they'll equally make money..

THE CONCEPT OF BID AND ASK/SPREAD

A question was asked that why do we have two (2) prices beside each quote and what the second
price stands
for.
They are Bid and Ask Price.. Bid Price is the price Buyers are willing to buy While Ask price is the
price sellers are willing to sell.

If you check the first image I posted above you'll see stuff like EURUSD 1.0958 1.0960

1.0958 Is the Bid Price

While

1.0960 Is the Ask Price

Let's say as a Nigerian you receive $10,000 from a friend abroad, on getting to Bank to exchange it
to Naira, they tell you that the latest CBN rate is #650 for example.
So you get 6.5 Million Naira as equivalent to the $10,000.
In this situation,Bank is the broker... #650 here is the Bid price, while #670 is the Ask price..
Now, back to Forex..

In Forex, the Bid and Ask price work same way, however, not as exuberant as the one Banks exploit
us with. The difference between these two(Bid and ask price) in forex is just in points. So The Bid
Price is that price that Buyers also in Forex are willing to Buy while Ask price is the price that the
Sellers are willing to sell.
Here Buyers and sellers are not human beings, it's the market in this case, everything is
computerized..

You Buy from the market and Sell to the market instantly and make instant profits
So what I'm tryna explain is that when you place a Buy order in Forex, it'll activate for you using
the Ask price (remember that the Ask price is the Price that the market is willing to Sell to you, the
Buyer)
While in reverse, when you place a Sell order in Forex, it'll activate for you using the Bid price
(remember that the Bid price is the Price that the market willing to Buy from you, the Seller)
From the example I gave above 670 Naira was the Ask price and it's bigger than the Bid price which
was 650 Naira, same thing happens in Forex, the Ask price is also higher than the Bid price...

Just like we saw in the example above EURUSD..... 1.0958 1.0960…

This is where SPREAD comes in

Spread is the difference between the Bid and Ask price.

In the example I gave above.

The Spread is #670 - #650 = #20

The Spread is 20 Naira.. That's Bank's profit on that exchange.

So also in Forex, the Spread is the profit of the Brokers, however in this case, it's very small
because it's measured in pips, we'll talk about pips and how its calculated don't miss it..

One thing you must know is that spread varies between Trading Sessions(We'll talk about this).

When the Volatility is high and many markets sessions are open at the same time.

The spread is always small (meaning that you pay Broker lesser commissions) that is another
advantage of Trading when many markets are open.. With the practical example of this u will
understand SPREAD very well nothing much there just for u to get how it works Because you will
see it while we trade

BASIC FOREX TERMINOLOGIES

Forex trading is just like every other profession or area of specialization out there in terms of
using terminologies and codes to communicate. You'll agree with me that any business you go into
or let's say all Department in tertiary institution has their ways of communicating or words they say
among themselves that outsiders won't understand that's the same thing that happens in Forex Even
boys on the streets have their code of communication...

For you to communicate effectively with other Market analysts, Forex gurus, interpret news,
flow with your colleagues etc. you need to learn and get to know some of the terms used in Forex
Trading. Now, I want you to remember my own practical definition of Forex I gave, where I said
that Forex is a struggle between the Bull and The Bear. So everything in Forex is Bullish and
Bearish, Anything Bullish is upward movement while Bearish is downward.
Bulls = Buyers in the Forex market are referred to as Bulls

Bears = Sellers are referred to as Bears.

Bullish Market = A market that is going Upwards

Bearish Market = A Market that is going downwards.

Ranging Market = When market is neither moving Upwards nor Downwards. In this case it has no
clear direction

Trending Market =A Market that has a clear direction. Either bullish or bearish

Ranging market �

It's just a straight move neither upwards nor downwards this type of market movements is to be
avoided. It's ranging like explained in the above it's been described in the image.

TRENDING MARKET

Clear direction both upwards & downwards is seen on this image, Different from ranging market
image.
Different from ranging market image.
To go Long = to buy a currency pair after analysis

To go Short = to sell a pair after analysis. This is also referred to when you're asked to buy or sell
it's no different with these words long & short, So, your colleague or any other trader who has gone
through a professional training can just tell you that Gbpusd is bearish at the moment let's wait for
this or that to happen so that we can short the pair.. Another can say that Eurusd is ranging let's wait
for this or that to happen so that we can long or short the pair.

FOREX TRADING SESSIONS

Now, I want you to know that the Forex market opens on Sunday by 10pm Nigerian time, runs
through out the week and closes on Friday by 10pm Nigerian time, opens again on Sunday..
During this period where market is open you can trade(Buy and Sell) and make profit
As we proceed but as for forex pairs these currencies u're seeing on ur MT5 apart from crpto
pairs like BTC/USD, eth/usd others closes
But the thing is, there are continental trading sessions that open and close daily and if you trade
a currency owned by a country whose trading session is open at the moment market is likely going
to move faster and farther..
Let me explain using real life market. Here in Aba, Abia State, there's a popular market
known as Ekekpara market, it's open everyday people buy and sell including sundays but the real
Market day comes up once in a week, You may also have such market at your place and On the real
market days, people come from other states to the market, everywhere gets filled up with buyers
and sellers, therefore giving people more options and opportunity to see what they're looking for
easier without having to go round looking for it the way it happens when it's not the real market
day. That's the same thing applicable to the Forex market, Sessions open and close daily but the
market is always open. Each trading session lasts for 9hrs per day,

*Australian Session* opens by 9pm gmt... closes by 6am gmt

*Asian Session* opens by 11pm gmt... Closes by 8am gmt

European Session opens by 7am gmt to 4pm gmt(my favorite )

North American session opens by 12pm gmt to 9pm gmt.

Tho let me elaborate more on different currencies and their sessions

*FOREX TRADING SESSIONS*

There are Various Trading Sessions in Forex and These Sessions are named according to the major
cities in which most of the Transactions are done during this time. They include:

1) LONDON SESSION
2) FRANKFURT SESSION
3) NEW YORK SESSION
4) SYDNEY SESSION
5) TOKYO SESSION

*LONDON Session* represents trading activities in the United Kingdom and the countries
around it, like Ireland, Iceland etc. It opens at 7am GMT & closes 4pm GMT.
*FRANKFURT Session* derives it name from Frankfurt which is in Germany and represents
Europe trading activities. It opens at 8am GMT & closes 5pm GMT.

*NEW YORK Session* derives it name from New York in USA and represents The Americas
trading activities. It opens at 1pm GMT & closes 10pm GMT.

*SYDNEY Session* derives it name from the city of Sydney and represents Australia and other
countries around that Time zone. It opens at 9pm GMT & closes 6am GMT.

*TOKYO Session* sometimes called ASIAN Session represents Japan and some of the Asian
countries. It opens at 11pm GMT & closes 8am GMT.

PIPS
WHAT IS A PIP IN FOREX?
A PIP is the smallest unit in which a Currency pair's exchange rate can change.

It can also be said to be a standardized unit and the smallest amount by which a currency's worth
in forex market can change. To me I’ll say pip is the smallest significant movement in the forex
market.

WHAT IS LOT SIZE

Lot size determine the amount of currencies you wish to trade at a time

Lot size combined with Pips determine the how much you risk on a trade.
If you choose 1.0 as your preferred lot size for that trade you have chosen to trade 100,000 pieces of
the currency.
If you choose 0.1 as your preferred lot size for that trade you have chosen to trade 10,000 pieces of
the currency. If you choose 0.01 as your preferred lot size for that trade you have chosen to trade
1,000 pieces of the currency. But bear in mind that if you trade with;-

a standard lot i.e 1.0 you'll make 10$ per pip

Mini lot i.e 0.1 you'll make 1$ per pip

Micro lot i.e 0.01 you'll make 0.10$ per pips

HOW STOPLOSS AND TAKE PROFIT WORK

Let's start with Take Profit
As a Forex Trader, be you a pro or beginner, it is almost impossible to monitor your trades all time..

I Personally don't just sit on my desk all day in front of my laptops. Some trades do stay over for
long before they give me my desired profit so I leave them, get engaged in something else, I step
out leaving my trades running While Take Profit and Stop loss watch over my trades for me I
do go out, to wherever i want while my trades are still running.. Take Profit is a Form of market
order, set by you to tell your Broker/Mt5 to close your trade for you locking in your profit when
your trade moves a certain number of Pips in your desired direction even if you're not online.
Simply put, its your target profit.. When you open a trade, you calculate how much you want to risk
on that trade and how much you want to make from that trade, what tells your trade to close at the
point you set your target profit is what we call Take Profit
"TP" In short words
That's where to set them after calculating pips

Let's look at the last one

Stop Loss
Stop loss : is another important form of Market order, which is like the opposite of the Take
Profit. Here you are giving your Broker an Instruction to Close your trade when the market wants to
go against you. Market is always going up and down and sometimes a News may pop up and sway
the market in the opposite direction in which your Trade was planned, But with a Stop-loss order
you're safe.
Immediately the market wants to change and go the opposite direction,
Your Broker will close the Trade for you through your MT4, even if you are not online.

*TAKE PROFIT* is a Form of market order that tells your Broker to close your Trade for You
and Lock in your Profit when your trade moves a certain number of Pips in your desired direction,
even if you are not online.

For example: you traded a currency pair, lets call it AAA/BBB And It's currently at $40. From your
Technical or Fundamental Analysis you found out that it would soon rise. You immediately opened
BUY position.
Lets say your Target profit for this Trade is just $50.

For you to set a Target profit at $50, you add it to the price you entered, which was $40, So your TP
would be at $90.

Anytime, the currency pair AAA/BBB Starts Climbing and Reaches $90, even if you are not online,
Your MT4 through your Broker’s server would close the Trade for you automatically and add the
$50 profit to your account immediately.

*This is how Take Profit works!*

Assuming I want to Buy EURUSD at that Current ASK PRICE of 1.0960 as seen in the image,
and I want a Take Profit of 30 pips. I would Add 30 pips to the Ask Price (1.0960) and I would have
1.0990 as my TP and i would type this figure into the space on my MT4 for TP.
Thus, Immediately the Currency pair rises during it's usual fluctuations and gets to 1.0990, My
Broker would immediately Close the Trade for me, Whether am online or not and then Add my
Profit to my account.

*LETS LOOK AT A SELL SCENARIO:*

Remember, when Selling a Currency pair in the Forex Market, You Sell after you have found out
from your Technical or Fundamental Analysis that the Price would Fall. This is the Opposite of
Buying! Lets say after Your Analysis, You found out that AUDUSD would fall. So You decided to
Short (Sell) AUDUSD pair (Remember, now we are interested in the Bid price because we are
Selling).

The Bid Price is currently at 0.6743 in the image above and I want a TP of 60 pips. What would be
the value of my TP? because we are expecting it to fall, Our TP would be below not above.

So, i will subtract 60 pips from 0.6743 and it would give me 0.6683. Hence, I would input 0.6683 into
the same TP box, we used when we were buying. (Same TP box is used both when you are buying
or selling)

Thus, when AUDUSD falls and reaches 0.6683 my Broker would automatically close and add my
profit for me.

Assuming We want to Buy USDCAD and we want a Take Profit of 50 pips and a Stop Loss of
just 10 pips from that Ask price of 1.3327, Our TP would be at 1.3377 (after adding 50 pips to the
current Ask price), while our SL would be at 1.3317 (after subtracting 10 pips from that same Ask
price).

We would now type in 1.3377 into the TP Box and Type 1.3317 into the SL Box, then click on Buy
Button.

Once price tries to fall to 1.3317 instead of rising since we are buying, the MT4 would
automatically close the trades.
Assuming We want to Buy USDCAD and we want a Take Profit of 50 pips and a Stop Loss of just
10 pips from that Ask price of 1.3327, Our TP would be at 1.3377 (after adding 50 pips to the current
Ask price), while our SL would be at 1.3317 (after subtracting 10 pips from that same Ask price).

We would now type in 1.3377 into the TP Box and Type 1.3317 into the SL Box, then click on Buy
Button.
Once price tries to fall to 1.3317 instead of rising since we are buying, the MT4 would
automatically close the trades.

Now, let's look at *How to Calculate Stop-loss in Sell Scenario*. Always remember, in Selling,
We only make money when the price is Falling.

Lets assume I want to Sell a Currency pair TTT/UUU and the price is currently at $80 And i
want a TP of 50 pips.

Don't forget, we are selling, so your TP is below while your Stop Loss is above.

So assuming I don't want to lose more than 5 pips, I would now set My Stop loss 5 pips above the
initial price of $80 (Hence, $85).

*Let's look at a real example of a selling Scenario;*

Lets consider a scenario where I want to Sell EURJPY at the current Bid price of 117.93
because I know it would soon fall, And I want a TP of 53 pips and I don't want to loose more than 5
pips (SL).

What would be my TP and SL?

My TP would be at 117.40 (after subtracting 53 pips from that current Bid price (117.93) because I
am selling while, My SL would be at 117.98 after adding 5 pips to the current Bid price (117.93).
Lets consider a scenario where I want to Sell EURJPY at the current Bid price of 117.93 because I
know it would soon fall, And I want a TP of 53 pips and I don't want to loose more than 5 pips (SL).

What would be my TP and SL?

My TP would be at 117.40 (after subtracting 53 pips from that current Bid price (117.93) because I
am selling while, My SL would be at 117.98 after adding 5 pips to the current Bid price (117.93).

*IN SUMMARY:* When Buying, your TP is above (because you want the price to go up)
while your Stop Loss is below (because if it starts going down, that's against your analysis).

*ON THE OTHER HAND,* While Selling, Your TP is below (because you want the price to fall)
and your Stop loss should be above (because if it starts going up, then its against your analysis).

Let's consider the Pip Equivalent of each lotsize in dollars.

STANDARD LOT SIZE

1 PIP = $10
MINI LOTSIZE
1 PIP = $1

MICRO LOTSIZE
1 PIP = $0.1 (10 cent)

Don't forget this

The trading view does the calculation it's automatically for you but you also have to learn how to
do it

Thus, If 3 Forex Traders trades a Currency pair, And 3 of them bagged 50 pips.

Assuming Trader A traded 1 Standard Lotsize of the pair, Trader B traded 1 Mini Lotsize of the
same pair, and Trader C, traded 1 Micro Lotsize of the pair.

Trader A would make 50 pips x $10 = $500

Trader B would make 50 pips x $1 = $50
Trader C would make 50 pips x $0.1 = $5

Even though the 3 Traders participated in the same trade and the market moved in their direction for
the same amount of pips, profits were different because the amount of that particular Currency Pair
they each bought.
*HOW DO YOU CALCULATE A PIP?*

For most currency pairs in Forex, We calculate pips using the 4th decimal number (However, there
are few exceptions).

Lets start with the common pairs before we proceed to the exceptions

For Instance: In EURUSD in the image uploaded above, we start calculating the PIP from the
4th decimal number there which is "8".

If EURUSD makes a 1 pip move from the current price of 1.0958, we will have the new value as
1.0959.

How did i get 1.0958? I added 1 to the 4th decimal number and it increased from "8" to "9".
Lets look at another example. In the above image, GBPUSD has a current price of 1.2210.

If GBPUSD makes a move of 2 pips from the Current value of 1.2210, Its new Value would be
1.2212.

How did we arrive at 1.2212? We added "2" to the 4th decimal number which is "0" and it increased
to "2".

As simple as that!
Lets look at another example. In the above image, GBPUSD has a current price of 1.2210.

If GBPUSD makes a move of 2 pips from the Current value of 1.2210, Its new Value would be
1.2212.

How did we arrive at 1.2212? We added "2" to the 4th decimal number which is "0" and it increased
to "2".

As simple as that!

As earlier stated, for most currency pairs in Forex, the pip Calculation, starts from the 4th
decimal place. Yet, there are some currency pairs that are not up to 4 decimal place and they have
specific ways of Calculating them.

Example of such pairs are JPY pairs. Example include: USDJPY | EURJPY | GBPJPY | AUDJPY |
NZDJPY etc

Another popular Example is Gold (XAUUSD).

Now, lets look at JPY pairs first.

For JPY pairs like USDJPY, the pips Calculation starts from the 2nd decimal place digit.

Now pay attention Not everyone will teach u this

Lets take a calculation a bit higher. Assuming USDJPY made a move of 10 pips from the
current market Value of 107.17, the new value by simply adding 10 to the 2nd decimal place number
would be 107.27.

It is as simple as that.

Lets look at the last exception which is Gold. Gold is represented as XAUUSD on MT4 by
some brokers, Because the Chemical Formula for Gold in the periodic table is AU and it is
exchanged with USD.

Note that Gold pip is calculated using the 1st decimal number.

Note this examples am giving is not the current price of these pairs if you check ur mt5 rather I
use it for my teachings take a look at it. You can use ur current price on mt5 and practice hope u
understand
In the Gold pair labelled above, the price is currently at 1505.46. If it makes a move of 2 pips, The
New value would be 1505.66.

How did we get this? I added "2" to the 1st decimal number which is the figure "4" and it changed
to "6" thus giving us the market value of 1505.66.

As simple as that

: *TRADING ORDERS*

There are Basically 3 Type of Trading Orders:

1) INSTANT MARKET EXECUTION

2) STOP ORDERS
3) LIMIT ORDERS

We will talk about Instant Market Execution now and consider the other types when we discuss
Support and Resistance in FOREX, so that you guys can understand them properly.

Instant Market execution simply implies that you are Buying at that Instantaneous Market Price.
Simple as that!

For example, a Currency pair is Presently at $50 and you Clicked on Buy. What you just did is
Instant Market Execution because you bought at that current price.

There are so many tools that tells us when to buy or Sell a currency pair and there are different
strategies that accompany each of these Tools.

They range from;

1) Indicators
2) Candlestick Analysis
3) Support and Resistance zones
4) Demand and Supply Zone
5) Trendlines
6) Pivot points
7) Fibonacci tools
8) Elliot waves
9) Market Structure
10) Chart patterns etc

As mentioned earlier in the training, we *Buy a currency pair when we know it would go up*
And we *Sell a currency pair when we know it would go down.*

However, the Big question remains, *how do I know when it would go up and how do I know when
it would go down?*

Let's talk about the types of FOREX TRADING

*We have three (3) types of market analysis,which are;*

*1. TECHNICAL ANALYSIS*

*2. FUNDAMENTAL ANALYSIS*

There has always been a constant debate as to which analysis is better, but to tell you the truth,
you need to know a little bit of both. So let’s break each one down and then come back and put
them together.

*FUNDAMENTAL ANALYSIS*
Fundamental analysis is a way of looking at the market through economic, social and political
forces that affect supply and demand. (Yada yada yada.) In other words, you look at whose
economy is doing well, and whose economy sucks. The idea behind this type of
analysis is that if a country’s economy is doing well, their currency will also be doing well. This is
because the better a country’s economy, the more trust other countries have in that currency.

For example, the U.S. dollar has been gaining strength because the U.S. economy is gaining
strength. As the economy gets better, interest rates get higher to control inflation and as a
result, the value of the dollar continues to increase. In a nutshell, that is basically what fundamental
analysis is.

Fundamental analysis is a way of looking at the market through economic, social and political
forces that affect supply and demand. (Yada yada yada.) In other words, you look at whose
economy is doing well, and whose economy sucks. The idea behind this type of
analysis is that if a country’s economy is doing well, their currency will also be doing well. This is
because the better a country’s economy, the more trust other countries have in that currency.

For example, the U.S. dollar has been gaining strength because the U.S. economy is gaining
strength. As the economy gets better, interest rates get higher to control inflation and as a
result, the value of the dollar continues to increase. In a nutshell, that is basically what fundamental
analysis is.
*TECHNICAL ANALYSIS*
Technical analysis is the study of price movement. In one word, technical analysis = charts. The
idea is that a person can look at historical price movements, and, based on the price action, can
determine at some level where the price will go. By looking at charts, you can identify trends and
patterns which can help you find good trading opportunities.
And we will be Doing great and more justice to this as the class goes on.
These are called Market Orders

A limit order is an order placed to buy or sell at a certain price. The order essentially contains two
variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go
long if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit
1.2070 (at which point you would click a buy market order), or you can set a buy limit order at
1.2070 (then you could walk
away from your computer to attend your ballroom dancing class). If the price goes up to 1.2070,
your trading platform will automatically execute a buy order at that exact price. You specify the
price at which you wish to buy/sell a certain currency pair and also specify how long you want the
order to remain active (GTC or GFD).

GTC (good till cancelled), it means the order remains active till you cancel it, or you let it run.

A market order is an order to buy or sell at the current market price. For example,
EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click
buy and your trading platform would instantly execute a buy order at that exact price. If you ever
shop on Amazon.com, it's (kinda) like using their 1-Click ordering. You like the current price, you
click once and it's yours! The only difference is you are buying or selling one currency against
another currency instead of buying Britney Spears CDs.

Now, we will look at INDICATOR; *Moving Average!*

Moving Average is a very popular indicator and has lots of strategies attached to it.

Moving Average is an Indicator that Calculates the Average Closing price of a particular currency
pair for the last "X" period (Time).