Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves

291 Pages·2015·4.7 MB·English

by  Kathy Lien

D T
AY RADING
S T
AND WING RADING
C M
THE URRENCY ARKET
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D T
AY RADING
S T
AND WING RADING
C
THE URRENCY
M
ARKET
Technical and Fundamental
Strategies to Profit from Market Moves
Third Edition
Kathy Lien
CopyrightC2016byKathyLien.Allrightsreserved.
PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey.
ThefirsteditionwaspublishedasDayTradingtheCurrencyMarketbyJohnWiley&Sons,Inc.in2005.The
secondeditionwaspublishedasDayTradingandSwingTradingtheCurrencyMarketbyJohnWiley&Sons,Inc.in
2008.
PublishedsimultaneouslyinCanada.
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LibraryofCongressCataloging-in-PublicationData:
Names:Lien,Kathy,1980-|Lien,Kathy,1980-.Daytradingthecurrencymarket.
Title:Daytradingandswingtradingthecurrencymarket:technicalandfundamentalstrategiestoprofitfrom
marketmoves/KathyLien.
Description:Thirdedition.|Hoboken:Wiley,2015.|Series:Wileytrading|Revisededitionoftheauthor’s
Daytradingandswingtradingthecurrencymarket,2009.|Includesindex.
Identifiers:LCCN2015031925|ISBN9781119108412(paperback)|ISBN9781119220107(ePDF)|
ISBN9781119220091(ePub)
Subjects:LCSH:Foreignexchangefutures.|Foreignexchangemarket.|Speculation.|BISAC:BUSINESS&
ECONOMICS/Investments&Securities.
Classification:LCCHG3853.L542015|DDC332.4/5—dc23LCrecordavailableat
http://lccn.loc.gov/2015031925
CoverDesign:Wiley
CoverImage:CJohnLund/GettyImages
PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
Dedicated to My Son Jackson,
Who I Hope Will Share His Momma’s Love for the Markets
And to My Husband and Wonderful Family, for Their Love and Support

CONTENTS
Preface ix
AbouttheAuthor xi
CHAPTER1 ForeignExchange—TheFastestGrowing
MarketofOurTime 1
CHAPTER2 HistoricalEventsintheFXMarkets 17
CHAPTER3 WhatMovestheCurrencyMarket? 31
CHAPTER4 ADeeperLookattheFXMarket 53 vii
CHAPTER5 WhatAretheMostMarketMovingEconomic
Data? 61
CHAPTER6 WhatAreCurrencyCorrelations,andHowCan
WeUseThem? 67
CHAPTER7 TradeParametersforVariousMarket
Conditions 73
CHAPTER8 TechnicalTradingStrategy:MultipleTime
FrameAnalysis 91
CHAPTER9 TechnicalStrategy:TradingwithDouble
BollingerBands 101
CHAPTER10 TechnicalTradingStrategy:FadingtheDouble
Zeros 111
CHAPTER11 TechnicalTradingStrategy:Waitingforthe
Deal 117
CHAPTER12 TechnicalTradingStrategy:InsideDays
BreakoutPlay 123
CHAPTER13 TechnicalTradingStrategy:Fader 129
CHAPTER14 TechnicalTradingStrategy:20-DayBreakout
Trade 135
CHAPTER15 TechnicalTradingStrategy:Channels 139
CHAPTER16 TechnicalTradingStrategy:PerfectOrder 143
CHAPTER17 FundamentalTradingStrategy:PairingStrong
withWeak 149
CHAPTER18 FundamentalTradingStrategy:TheLeveraged
CarryTrade 153
CHAPTER19 FundamentalTradingStrategy:MacroEvent
DrivenTrade 161
CHAPTER20 QuantitativeEasingandItsImpactonForex 169
CHAPTER21 FundamentalTradingStrategy:Commodity
PricesasaLeadingIndicator 177
CHAPTER22 FundamentalStrategy:UsingBondSpreadsasa
viii LeadingIndicatorforFX 181
S CHAPTER23 FundamentalTradingStrategy:RiskReversals 187
T
N
E
T CHAPTER24 FundamentalTradingStrategy:UsingOption
N
O
C VolatilitiestoTimeMarketMovements 191
CHAPTER25 FundamentalTradingStrategy:Intervention 195
CHAPTER26 CurrencyProfilesandOutlook 203
CHAPTER27 CurrencyProfile:Euro(EUR) 213
CHAPTER28 CurrencyProfile:BritishPound(GBP) 223
CHAPTER29 CurrencyProfile:SwissFranc(CHF) 231
CHAPTER30 CurrencyProfile:JapaneseYen(JPY) 239
CHAPTER31 CurrencyProfile:AustralianDollar(AUD) 247
CHAPTER32 CurrencyProfile:NewZealandDollar(NZD) 255
CHAPTER33 CurrencyProfile:CanadianDollar(CAD) 263
Index 269