Thanks in part to new regulations from the NFA as well as the SEC, many American based forex brokers could no longer allow investors to hedge their positions. Hedging, of course, is the process of buying and selling the same currency pair at the same time. Forex Hedging Imagine you own 50 lots of EURUSD [...] Read more »
All Fiat Currencies Fail
Fiat currencies have come under criticism for their long history of failure. In fact, virtually every single fiat currency has failed. Why All Fiat Currencies Fail The biggest reason fiat currencies fail is because there are no limits to the amount of currency that can be printed up by the issuer Read more »
Currencies Pegged to the Dollar
Believe it or not, there was once a time that every currency was pegged to the US dollar. Following World War II, 44 allied nations pulled together to peg their currencies to the US dollar with US officials promising that the dollar would then be pegged to a certain weight of gold. Under the above [...] Read more »
Engulfing Candlestick Pattern
The engulfing candestick pattern can be both a bullish and bearish signal depending on how the candlesticks form. The first candlestick is comprised of a small body candlestick followed by a large candlestick (either positive or negative) that Read more »
Evening Star Candlestick Pattern
Very much like the evening doji star, the evening star consists of a positive candlestick followed by a small body candlestick poised above the first candle, and one last candlestick that opens lower and declines deep into the first candlestick. This candlestick pattern appears only at the top of charts. Here is an example of [...] Read more »
Evening Doji Star Candlestick Pattern
The evening doji star is one of the most bearish candlesticks, consisting of a large uptick in price, followed by a doji, then a decreasing candlestick. This three candlestick pattern is extremely effective in finding market tops, as it reflects a move to the upside, indecision, then a large dip in the current price. This [...] Read more »
Dark Cloud Cover Candlestick Pattern
Dark cloud cover is a bearish signal to investors, indicating that the price of a currency pair is soon the fall. Dark cloud cover begins with an advancing candlestick that is overshadowed by a declining candlestick that opens higher than the last close but also closes below the midpoint of the fist candlstick. Here is [...] Read more »
Dragonfly Doji Candlestick Pattern
Just like the regular doji, in a dragonfly doji pattern the price of the currency opens and closes at the same point. However, a dragonfly doji differs in that the open and close price are at the very top of the candlestick. The dragonfly doji usually only appears at market turning points, where a new [...] Read more »
Doji Candlestick Pattern
The Doji candlestick pattern is made up of a candlestick that goes both postive and negative, but ultimately closes at the same price of the open. A doji indicates indecision in the market, in that the currency pair edged higher, but ultimately closed at exactly the same price of open. Typically these are found at [...] Read more »
Foreign Currencies Backed By Gold
The US Dollar was once backed entirely by gold, thus earning the term “greenback.” The Swiss Franc (CHF) was once 40% backed by both gold and silver, but in 2006 when the Swiss had to sell its gold and silver reserves to join the IMF. Today, not a single solitary currency on the face of [...] Read more »
