Global Currencies

Chapter 1

Forex Basics

Chapter 2

Fundamental Factors

Chapter 3

Technical Tools

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Lesson 7. Technical Analysis

This lesson focuses on the other branch of market analysis - technical analysis. It discusses the ideas of trends, support and resistance, and chart patterns. The lesson goes on to detail some continuation and reversal chart patterns.

7.1	Introduction Market Price Reflect All Known Information Chart Patterns Concept of Trend
7.2	Chart Types Line Chart Bar Chart Candlestick Chart
7.3	Trends Upward Downward Sideways Trends
7.4	Concept of Support and Resistance Support and Resistance Levels Trendlines and Trendline Penetrations Support Turns into Resistance Channel Line

7.5	Trend Reversal Patterns Head and Shoulders Inverse Head and Shoulders
7.6	More Reversal Patterns - Various Tops and Bottoms Double Top Double Bottom Triple Tops and Bottoms Rounded Tops and Bottoms
7.7	Continuation Patterns Flags Rectangles
7.8	More Continuation Patterns Symmetrical Triangle Ascending Triangle Descending Triangle Wedges

Lesson 8. Risk Management – Creating A Trading Methodology

This lesson presents educational information on risk management techniques that a new trader can consider when entering the world of Forex trading. We explain about creating a trading methodology and touch on some aspects of trading psychology.

8.1	Structuring a Plan for Trading Introduction Trend Following Traders Counter Trend Traders Deciding Which Trading Style One Prefers Select Trading Tools and Practice
8.2	Risk Management Techniques Levels of Drawdown Per Trade Exposure Example of Calculating Risk and Exposure Per Trade

8.3	Using Exposure Per Trade in Examples Weathering Noise Sizing a Position Sizing a Position 2
8.4	Psychology of Trading Flexibility in Trading Strategies Mastering Emotions with a Trading Plan
8.5	A Trader’s Journal Creating and Maintaining a Trader’s Journal Recording When One Does Not Follow His or Her Trading Plan

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.