The Forex Markets Are Great For Beginning Traders - Part 1

In 1876, gold exchange standard was implemented to stabilize world currencies. The gold standard was dropped at the beginning of World War 2 as major European countries did not have enough gold to support all the currency they were printing to pay for military projects. In 1944, the world decided to have fixed exchange rates which resulted in the U.S. dollar being the primary reserve currency back by gold aka the Bretton Woods System. In 1971, the U.S. declared that it would no longer exchange gold for U.S. dollars that were held in foreign reserves. The end of the Bretton Woods System ultimately led to a global acceptance of floating foreign exchange rates in 1976, better known as the foreign currency exchange market.

Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to travel aboard or conduct foreign trade and business.

The foreign exchange market is where currencies are traded. When investors trade foreign exchange (forex or FX for short) they’re buying and selling currencies over the foreign exchange market.

The forex market is the largest and most traded financial market in the world. The forex market has grown to a daily trade volume of over $5 trillion a day which is over 200 times bigger than the New York Stock Exchange.

https://www.thestreet.com/markets/top-10-most-tradable-currencies-in-the-world-15065154?puc=yahoo&cm_ven=YAHOO&yptr=yahoo

I use multiple time frame (MTF) analysis to improve my discretionary trading decisions. MTF analysis involves analyzing the same asset on multiple time frames. The rule of thumb when using MFT is you want your charts to scale down/up by 4X – 6X. In my case I tend to look at:

Monthly Charts (curve time frame) – which represents that jet fighter flying over the football stadium.
Weekly Charts (trend time frame) – which represents the concession stands looking down at the field.
Daily Charts (entry time frame) – which represents being on the football field with the player.
4 Hr Charts (entry time frame) – which represents the center hiking the ball to the quarterback.