26 May 2010

Forex Books 2: Quick Review

This is another great Forex book. Forex is rough, it must be said, but the more you stick with it, the nicer it gets, in stages. Raghee is very experienced trader and the niceness of it shows here. There is some real magic here. For starters the 34-EMA high, low, close moving average (which she calls the 34 EMA). This is something I sometimes use.

It shows support and resistance, and it can be a good filter. I have actually used it to filter the 'Trading Chaos' methods (to be reviewed). It is one of the more coherent technical methods. Raghee trades on medium term time frames and does not like scapling. She uses trendlines and Fibonacci levels. Again these work well to show support and resistance in Forex. Her methods are about using momentum.

The initial surge upwards to enter, then gradual exits by lot as support or resistance is encountered. If you want it fast and you want it now, then these methods you may find less than thrilling. But there is a sound model there. It is like in a way a Forex version of 'Rule Number One", by Phil Town, it is tough as there is a powerful model behind it. It is a book worth reading and re-reading.

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