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Forex Trading Stategy
Among the 4 famous currencies in foreign exchange trading (Great Britain Pound (GBP), Euro (EUR), Japanese YEN (JPY), Swiss Franc (CHF), I prefer to play in CHF. The Swiss currency is most obedient to my trading strategy.
As a beginner in the foreign exchange trading in 2002, I have to learn many things and test any existing techniques. During the first 6 months I am in this business, I am trying to test a formula given by my forex teacher from Hongkong.
A formula is a set of data such as opening prices , the highest price, the lowest price and the closing price on that day and the closing price of the previous day and 4 constants that resulting certain numbers that represent the movement area of the currency.
For 6 months, every day except holiday, after the market is closed, I always record the opening price, highest price, lowest price, the closing price that day and previous day's closing price of the 4 currency.
The formula processes the data to produce 5 important prices. This produce 5 important price will be the area of the currency movement.