FXCM Micro, the New Discount Forex Division of FXCM

New York, August 22, 2008

FXCM (www.fxcm.com) has announced the opening of its discount brokerage division FXCM Micro (www.forexmicrolot.com).

FXCM Micro allows traders to trade with super-low spreads, automated execution, and 1K lot sizes. FXCM Micro is offered for individual, self-traded accounts.

FXCM Micro successfully launched on June 22 with existing clients and has since fully launched, accepting new clients both domestic and internationally. Currently there are over 15,000 clients trading through FXCM Micro.

FXCM Micro is for traders who prefer the flexibility and convenience of trading in small (1K, 2K) lots, but are not willing to sacrifice tight spreads or quality execution.

With FXCM Micro, you can open an account with as little as $25, yet trade with competitive spreads.

In order to provide clients with tight spreads for 1K lot sizes (as little as 15 cents per lot for EUR/USD), FXCM controls expenses, such as costly support services. Instead of providing these services to clients by phone or IM, FXCM has innovated extensive self-help sections so that clients can find immediate answers on the Web site.

For more information and to see lower spreads, open a live FXCM Micro account with only $25, sign up at http://www.forexmicrolot.com/open-an-account.jsp.

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FXCM Facts

• Forex Capital Markets LLC is one of the Largest Forex Dealer Members
• More than 100,000 live accounts are traded on FXCM trading platforms
• As of January 2008, an average of $350 billion in notional volume is traded each month on FXCM trading platforms
• As of January 2008, there is in excess of $700 million in customer funds trading on platforms offered by FXCM
• FXCM provides customer support with native speakers in more than a dozen languages in 6 offices around the world

Registered with the CFTC as a Futures Commission Merchant, FXCM (Forex Capital Markets LLC) has received numerous awards from the investment community, including Best Currency Broker from Shares , Best Retail Foreign Exchange Platform from FX Week and Best Foreign Exchange Specialist from Technical Analysis of Stocks & Commodities . In addition to currency trading, FXCM offers educational courses on forex trading, and provides research through DailyFX.com.

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Leveraged foreign exchange trading carries a high level of risk, and may not be suitable for all investors. 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.

Technical Analysis: How to Read the Price Action

Regardless of the school of analysis we belong to, most of us will have few problems with the statement that the price action is all that matters to trading, ultimately, because the only determinant of our profits or losses is the price itself. We may have very sensible, well-thought justifications for our Forex analysis and Forex strategy, but if we cannot confirm them with the price action, the sad fact is that they are worthless.

Technical analysis takes this concept one step further, and claims that all that matters to trading is the price action itself. In other words, traders should disregard news events, statistics and data, along with economic and political developments, and concentrate all their attention on the price itself. This attitude is justified on the basis of the belief that the price action, created by knowledgeable and profit-hungry traders, reflects all the information available to the public at any one time, and it is futile so seek an edge over the market by trying to stay updated on all data. Not only is it impossible, technical analysts contend, but also useless, since the price already incorporates all the available information in itself according to the interpretation of the best and most powerful minds in the market. Technical analysts exhort us to study the markets, and ignore everything else, thus gaining a strong focus on the only piece of information that matters, the price.

Critics of technical analysis counter that while the price does represent the total amount of bulls and bears in the market, it doesn't reflect a consensus, and as such cannot be taken as a speaking the opinion of market participants at large. In other words, there is no such thing as a market opinion. In addition, they add, although in the short term the price action is difficult to predict, in the longer term economic events establish clear trends which can easily be anticipated and exploited through fundamental analysis. Technical analysts defend their school by positing that fundamental analysis is difficult, no more reliable than technical studies, and more time-consuming.

The tools of technical analysis are all applied on the price action as depicted on charts. Indicators are used to evaluate any price pattern to generate buy or sell signals, while price patterns are interpreted to identify the underlying momentum. Technical analysis does not claim to create error-free, concrete answers to questions in traders' minds, but it does offer to identify the scenarios where the potential for a profitable trade is greatest. A technical trader must have a mind adapted and used to dealing with probabilities, and he must be ready to take losses when they are unavoidable as well.

Let's conclude this brief study by noting that in the chaotic environment of the Forex market diligent money management methods, and emotional control are just as important, if not more important than any kind of strategy or analysis. To learn Forex, we need to preserve our capital. And money management is what teaches us how to preserve it. With patience and commitment, it is not hard to succeed in Forex, but without those two, there's no point in entertaining dreams about bathing in pools of gold and silver either.

By Carl Hayes

For the best Forex analysis, Forex strategies, news and commentary, visit forextraders.com now! Prepared by active traders for traders, this is the premier destination for all who aim to master the currency market and acquire financial independence. Do not waste your time now, and regret later by associating with false teacher. To learn Forex make the right start now and here!

Indicator of Forex Market Economy

All the investors in the forex market often base their decisions in trading upon economic and political news around the world. Forex and stock market depend on the countries economy. Using of industrial production index is the best way to predict the market trends in the future. All the traders are using this market indicator specially the traders who want to trader for a long time because if a country's economy is improving definitely its currency rate goes up and if the economy is decreasing, currency rate will automatically goes down.

What is Indicator?

Forex indicators are the primary and most essential tools used to determine the trend of foreign exchange and their future prospects. These tools sometimes become so important for the users to anticipate future ups and downs of the Forex market according to which, they could invest and deal their finances with foreign exchange.

There are a variety of Forex indicators available to the users of foreign exchange, which are highly advanced and avail an enhanced platform to the Forex dealers and users to deal the challenges with foreign exchange efficiently. These indicators are useful not only to the novice Forex trader, but also an experience Forex dealer as well. The two most significant indicators of them are as follows.

Moving Averages: Simple, Exponential and Weighted

Most Forex traders use Moving Average Indicators to calculate the trends in foreign exchange. This procedure can be set and interpret easily. Using this indicator, we can easily measure the average movement of the price within a particular time period. Through this indicator, the price data get smoothen with which, we can easily observe the market trend and tendencies.

Stochastic indicator

Stochastic indicator is another significant tool used as a Forex indicator by the Forex experts and dealers to estimate market trends and tendencies. The main idea suggested by this indicator is that the rising price always lies closer to its previous highs and the falling price always lies to its previous lows.

Forex Information: How To Draw DeMark Trendlines

When searching for Forex information on the internet you are likely to find articles relating to trendlines and trendline analysis.

Tom DeMark is a specialist in the field of technical market analysis and his best-selling book "The New Science of Technical Analysis" released in 1994 spells out some innovative techniques when it comes to the use of trendlines.

Much Forex information on the internet is of a general nature, and many articles are written about Forex by individuals who are not traders themselves. Tom DeMark on the other hand has had a long career with institutions trading stocks, futures, currencies and options.

His guidelines on the use of trendlines are very specific and they can be helpful to the newer trader who is searching for reliable Forex information on how to use standard indicators.

Here is a brief step-by-step description of how to draw DeMark trendlines:

Note: The term swing high and swing low (also called cycle high and cycle low) refers to the following:

In An Uptrend: A swing high is the wick of a candle that is higher than the wick of the candle to the left and right.

In A Downtrend: A swing low is the wick of a candle that is lower than the wick of the candle to the left and right.

Obviously the more candles to the left and right that are higher in a swing low or lower in a swing high makes the swing or cycle more significant.

An uptrend is where price is making higher highs and higher lows. A downtrend is where price is making lower highs and lower lows.

Drawing DeMark Trendlines

Drawing Trendlines In An Uptrend

1. Examine the bottoms of the candles on your chart and identify the most recent candle wick that is lower than the candle wicks to the immediate right and left of it.
2. Look left on the chart, and identify the previous low candle that has candle wicks higher to the immediate right and left of it which is lower than the current low candle.
3. Now draw a line from the current lowest candle to the previous lowest candle (drawing from right to left).
4. Now take the end of the newly drawn line which stops at the current low candle and extend it forward some distance (drawing from the present position to the right).

Drawing Trendlines In A Downtrend

1. Examine the tops of the candles on your chart and identify the most recent candle wick that is higher than the candle wicks to the immediate right and left of it.
2. Look left on the chart, and identify the previous high candle that has candle wicks lower to the immediate right and left of it which is higher than the current high candle.
3. Now draw a line from the current highest candle to the previous highest candle (drawing from right to left).
4. Now take the end of the newly drawn line which stops at the current high candle and extend it forward some distance (drawing from the present position to the right).

You have now drawn a Tom DeMark trendline.

This can now be a reference point for future price action. It will often be observed that price will come and check this level. If it breaks through, it can mean a change in direction, the significance of which will depend on the time frame being used.

Trendlines drawn on 5 minute or 15 minute charts have much lesser significance than trendlines drawn on higher time frames such as the 1 hour, 4 hour, or daily.

Caution Required

Much Forex information extols the virtues of trendlines as an indicator of possible future price action.

Mr. DeMark certainly has made this a science and his detailed approach to drawing trendlines is certainly more accurate than just drawing general trendlines along the bottoms and tops of trends according to the way the eye sees.

However, trendlines in themselves do not indicate where high probability trades can be taken.

It is important to use a variety of indicators before pulling the trigger. Examining previous levels of support and resistance is probably far more significant in determining where price is likely to hesitate that watching trendlines.

However, they can be useful. If you find a key support or resistance level also coincides with a Fibonacci retracement or extension level which is also at an intersection with a trendline, then you have built a reasonably solid case for a trade.

Use this Forex information on DeMark trendlines wisely, with caution, and it can be another useful addition to the Forex day trader's toolkit!

Discover Some Magic to Beat The Forex: The Elliott Wave Theory for Forex Markets

One of the best known and least understood theories of technical analysis in forex trading is the Elliot Wave Theory. Developed in the 1920s by Ralph Nelson Elliot as a method of predicting trends in the stock market, the Elliot Wave theory applies fractal mathematics to movements in the market to make predictions based on crowd behavior. In its essence, the Elliot Wave theory states that the market — in this case, the forex market — moves in a series of 5 swings upward and 3 swings back down, repeated perpetually. But if it were that simple, everyone would be making a killing by catching the wave and riding it until just before it crashes on the shore. Obviously, there's a lot more to it.

One of the things that makes riding the Elliot Wave so tricky is timing — of all the major wave theories, it's the only one that doesn't put a time limit on the reactions and rebounds of the market. A single In fact, the theories of fractal mathematics makes it clear that there are multiple waves within waves within waves. Interpreting the data and finding the right curves and crests is a tricky process, which gives rise to the contention that you can put 20 experts on the Elliot Wave theory in one room and they will never reach an agreement on which way a stock — or in this case, a currency — is headed.

Elliot Wave Basics

* Every action is followed by a reaction. It's a standard rule of physics that applies to the crowd behavior on which the Elliot Wave theory is based. If prices drop, people will buy. When people buy, the demand increases and supply decreases driving prices back up. Nearly every system that uses trend analysis to predict the movements of the currency market is based on determining when those actions will cause reactions that make a trade profitable.

* There are five waves in the direction of the main trend followed by three corrective waves (a "5-3" move). The Elliot Wave theory is that market activity can be predicted as a series of five waves that move in one direction (the trend) followed by three 'corrective' waves that move the market back toward its starting point.

* A 5-3 move completes a cycle. And here's where the theory begins to get truly complex. Like the mirror reflecting a mirror that reflects a mirror that reflects a mirror, the each 5-3 wave is not only complete in itself, it is a superset of a smaller series of waves, and a subset of a larger set of 5-3 waves — the next principle.

* This 5-3 move then becomes two subdivisions of the next higher 5-3 wave. In Elliot Wave notation, the 5 waves that fit the trend are labeled 1, 2, 3, 4 and 5 (impulses). The three correcting waves are called a, b and c (corrections). Each of these waves is made up of a 5-3 series of waves, and each of those is made up of a 5-3 series of waves. The 5-3 cycle that you're studying is an impulse and correction in the next ascending 5-3 series.

* The underlying 5-3 pattern remains constant, though the time span of each may vary. A 5-3 wave may take decades to complete — or it may be over in minutes. Traders who are successful in using the Elliot Wavy theory to trade in the currency market say that the trick is timing trades to coincide with the beginning and end of impulse 3 to minimize your risk and maximize your profit.

Because the timing of each sequence of waves varies so much, using the Elliot Wave theory is very much a matter of interpretation. Identifying the best time to enter and leave a trade is dependent on being able to see and follow the pattern of larger and smaller waves, and to know when to trade and when to get out based on the patterns you identify.

The key is in interpreting the pattern correctly — in finding the right starting point. Once you learn to see the wave patterns and identify them correctly, say those who are experts, you'll see how they apply in every facet of forex trading, and will be able to use those patterns to trigger your decisions whether you're day trading or in it for the long haul.

Fibonacci Numbers — Trade For Huge Profits With This Unique Tool!

The Fibonacci number sequence and golden ratio can be found throughout nature and traders such as Gann applied them to financial markets and made millions using this unique tool as part of his trading method.

The Fibonacci number sequence and golden ratio is used by many savvy traders today so let's look at how they can make huge profits in ANY financial markets.

Support and resistance levels are critical for all traders as they can help identify entry and exit points when trading.

Fibonacci percentage "retracement" levels derived from the Fibonacci number sequence and golden ratio are an innovative and useful tool for any trader, so why are they so useful.

Let's find out.

Fibonacci Numbers and Golden Ratio Applied To Trading

The Fibonacci sequence was printed in the Liber Abaci, written by Leonardo Fibonacci in 1202. It introduced Hindu-Arabic to Europe for the very first time and they replaced Roman numerals.

The Fibonacci number sequence was based around the following equation:

How many pairs of rabbits can be generated from one single pair, if each month each pair produces a new pair, which, from the second month, starts producing more rabbits?

While the Fibonacci number sequence and golden ratio was used to solve the above equation.

The result was:

It produced a number sequence that has importance throughout the natural world.

After the first few numbers in the sequence, the ratio of any number in relation to the next higher number is approximately .618, and the lower number is 1.618.

These two figures are known as the golden mean or the golden ratio.

The Golden Mean and Golden Ratio

These numbers are pleasing to the us and appear throughout biology, art, music, weather, creatures and even architecture.

Examples of natural objects based on the Golden Ratio are:

Snail shells, galaxies, hurricanes, DNA molecules, sunflowers and many more objects that occur in the natural world.

Retracement Levels

The two Fibonacci percentage retracement levels considered the most critical by traders are: 38.2% and 62.8%.

Other important retracement percentages are: 75%, 50%, and 33%.

So how can traders use them?

Well, there are three main advantages and they are:

1. Fibonacci numbers Define exit numbers

If three or more Fibonacci price levels come together, a stop loss can be placed above the area which indicates an important area of support or resistance.

Setting stop loss trades using Fibonacci retracements allows traders to set pre defined exit points, so they can exit the market if their wrong.

This means they can trade in a disciplined fashion and protect their equity, which is critical to all traders.

2. Fibonacci levels Can Define Position Size

Depending on the risk a trader wants to take on a trade Fibonacci numbers can give the size of position to be taken, in terms of risk the trader wishes to assume.

Why?

This is simply because the monetary loss from the stop for a trade is different on most positions taken in the market.

A stop close to resistance and support may mean that a bigger position than one where support or resistance is further away.

Traders can therefore decide position size within their money management parameters easily and have a pre defined exit point.

3. Fibonacci Numbers & Profit Per Trade

With Fibonacci numbers, once a pattern completes against a Fibonacci price area traders can use them to lock in profits.

This indication of how far a profit may run, enables traders to lock in profits at pre defined set levels.

The advantage of the Fibonacci number sequence is they are a predictive tool:

So, they allow traders to have specific stop loss and profit objectives in advance.

Traders can then use them to lock in more profits and cut losses to a minimum, which is essential for longer term profitability.

Gann used them for this purpose and that is why they are such a useful tool for traders

One of the keys to trading any market is discipline:

To cut losses and run profits and win over the longer term by trading without emotion.

Gann knew this and all traders who have traded know how emotions can wreck a trading plan and the Fibonacci number sequence makes a trader stay disciplined.

Do they work?

Gann understood that using Fibonacci numbers could make large profits and cut losses on his trades and he used them to amass a fortune of over $50 million.

Fibonacci numbers are useful but should be used as part of a trading plan and Gann for example did not just rely on them he had an array of innovative tools that he combined to make stunning profits.

He was one of the most successful traders of all time and his legend lives on and many savvy traders around the world still use his methods

Check them out and you may be glad you did.

Not only are they innovative, they can give you big profit potential and that's what we all want as traders.

Gann Angles — A Unique Powerful Tool For Trading Profits

W D Gann developed technical trading systems that made him a fortune of in excess of 50 million dollars.

Gann was a trading legend and his stature is reflected in the life size portrait people see when they enter the New York Stock Exchange.

Gann Angles were one of his most effective tools so let's look at them. What do they do?

Gann angles allow you to pinpoint your entry and exit levels for bigger profit potential. Let's look at why Gann angles work.

Gann based his investment strategy on the fact that by studying the Past we can see patterns that will be reflected in the future which is true of any technical systems, but his view was unique on how these patterns occurred

Gann based his methods on the following:

1. Price, time, and range are the only three factors relevant to market movement.

2. Markets are cyclical in nature.

3. Financial price movements are geometric in design and function.

Gann believed that market movements were a reflection of human nature which is constant over time and by studying the past we can predict the future.

Gann's use of angles

Gann's used three patterns to predict market behavior in the future

1. Price study- This uses support and resistance lines, pivot points and angles.

2. Time study — This looks at historically reoccurring dates derived from natural order that Gann believed governed market movement.

3. Pattern study — This studies trends using trend lines and reversal patterns.

Using Gann angles requires practice and experience and below we have outlined tha basics that anyone using Gann angles should keep in mind.

Firstly, determine time units.

The way to determine a time unit is to study charts and look at the distances in which significant price movements occur.

Put the angles to the test and see how they perform.

The intermediate time period ( 1 — 3 months) tends to produce the highest number of accurate patterns and is the time frame to trade.

Secondly, a trader needs to determine the high or low from which to draw the Gann lines

Here you can use Fibonacci levels or pivot points to help you get an accurate picture . Gann then looked for "vibrations" or "price swings."

Finally, you need to know which pattern to use:

The most common patterns are the 1x1, the 1x2, and the 2x and are purely differences in the slope of the line.

The 1x2 is half the slope of the 1x1.

The numbers simply indicate the number of units and the slope of the line.

Traders need to look for patterns to trade.

The direction of the slope will be either down and to the right from a high point or up and to the right, if it's a low point.

Always look for repeat patterns on the charts.

Gann' theories are based upon the cyclical in nature of market movement, so the easier the patterns are to spot the more likely they will be tradable for profit.

Using Gann Angles for Trading Profits

Gann angles are a fantastic tool for predicting support and resistance levels.

Of course, many other trading methods use support and resistance lines however Gann angles add a new dimension, simply because they are diagonal.

The best Gann Formation

Will indicate a balance between time and price.

This will occur when prices move in synch with time.

This is present when the Gann angle being studied is at exactly 45 degrees.

In total there are nine different Gann angles that can be applied.

When one line is broken, the following angle will then give the next area of support or resistance.

Gann angles are just one of the tools He used to amass a fortune trading other include, the Golden ratio, Fibonacci numbers — when combined you have a powerful proven trading method.

As markets are cyclical and human nature never changes Gann's methods still apply today and are used by many savvy traders.

Gann made millions from Gann angles and the tools above study his methods further and see what they can do for your trading and you may be glad you did.