Those who have followed me over the years know the importance I place on big figures (otherwise referred to as round numbers) in forex trading. There is a technical, fundamental and psychological component to big figures that make them significant. While this isnt always quantifiable, pivotal big figures are often the ones that drive expectations and currency forecasts.
Every day there are fundamental announcements made that affect the forex market. What I have noticed along with many other forex traders is that when a fundamental announcement is made concerning a certain currency, the currency on average will make a 30 - 50 pip movement within a short time frame. This strategy is designed to catch the pips from this movement.
All currencies are assigned an International Standards Organization (ISO) code abbreviation. In currency trading, these codes are often used to express which specific currencies make up a currency pair. For example, USD/JPY refers to two currencies: the US Dollar and the Japanese Yen.
Many traders spend years and years forex online trying to find the Holy Grail of trading. That magic indicator or set of indicators, only known by a few traders, that will make them rich in a short period of time.
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Your trading game plan should be based on one of the following forex trading strategies or should be a combination of them. Mastering the forex trading techniques mentioned below should help you in your goal to trade forex for a living.
The beautiful thing about currency meter is that the indicators are color coded, making it very easy to follow. It is so much simplified that it can work perfectly on the free MT4 platform, which is what most traders are using.
To sum up, pivotal big figures can be a useful tool for forex trading. Pivotal big figures can be a good guide to the market bias and to potential targets. Central banks and financial officials often think in terms of round number ranges and this helps guide market expectations as well. The use of pivotal big figures can offer trading opportunities during periods of congestion and then signal directional moves when the pattern is broken. Whatever the case, it pays to be aware of pivotal big figures and the ways it can impact trading.
