Level 2 in the series Trading with Traders discusses and teaches the types of charts that are used by most forex traders. We shall concentrate on Candlestick Charts as these types of charts are as a rule most popular with traders. By the time you have finished this book you should have gained enough confidence to trade with some success on your dummy account. There are only really two ways to analyze the Forex markets; one is by using fundamental analysis or by using technical analysis. The successful traders do not use one and disregard the other, they use both approaches to a great extent. While fundamental analysis uses the approach of studying and analyzing political, social and economic developments and the impact they have on the supply and demand of currency pairs. Technical analysis is based around the types of price charts that are available to the Forex trader. As technical analysis uses the approach that the current price is the culmination of everything that has happened in the past, historical and current chart patterns help traders make the correct trading decisions. When studying a price chart you are in effect viewing price action that has happened in the past and which should give you an idea of where the price is going in the future.
About the Author:
Philip was born and educated in the United Kingdom. He joined Citibank in London before moving to Athens where he worked as a foreign exchange trader for both Citibank and Chase Manhattan. Philip was then posted to Citibank's Middle East North African Training Center in Athens/Beirut as the operations manager and a foreign exchange trainer. After returning to the United Kingdom Philip joined Union Bank of Switzerland as the Head of Learning and Development and introduced trading simulations as a safe way for new traders to trade. In 1993 he was appointed Head of Learning and Education for UBS in North America. He later left the bank and went into partnership with two colleagues and set up a successful financial training company (New Learning Developments) in New York City. At New Learning Developments he developed relationships with all the major investment banks such as Goldman, Lehman, JP Morgan, and other major financial institutions such as The Federal Reserve Bank, Chase, Citibank, ABN-AMRO and the World Bank. In 2001 he returned to London where he worked as a training consultant to financial services institutions and the Ministry of Defense. He now spends his time developing knowledge databases for on-line brokerage houses and conducts webinars on foreign exchange and on-line retail trading.
