PART ONE
Basic Training
The goal for Part One is to develop a common language that you and I can use. The rest of the book will discuss how the technical indicators highlighted in the first two chapters work together to tell a story of what is happening in the foreign exchange (forex) market.
Currency charts use candles and technical indicators to communicate. It is important for you to have a strong understanding of these building block indicators that form the foundation of the trading methodologies discussed in this book.
To learn this language as you read this book, I highly recommend that you take the time to set up your charting package with these indicators and settings so you can practice the methodology. Members of FX Bootcamp have access to a template that makes this easy. Nonmembers will just have to invest a little more time, but it will be worth the effort. Read the book, study the concepts, practice on your demo account, and develop long-term positive trading skills.
In Part One you will learn:
• The difference between a simple moving average (SMA) and an exponential moving average (EMA).
• How to trade moving average crossovers.
• How to use the moving average convergence divergence (MACD) indicator.
• How to trade MACD divergence.
• How to use Bollinger Bands.
• How to trade volatility.
• How to spot a technical reversal.
• How to identify support and resistance (S&R).
• How to trade a break or bounce of S&R.
• How to trade S&R role reversals.
• How to use ...
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