In this article are some reasons why every trader should consider forex trading according to the price action as an integral part of the range of trading instruments.

First, it can be said that the price action provides the data more closely related to the trading representative in real time. When you do Forex following the price action leads to a series of interesting information about markets, not filtered through mathematical calculations, that characterize the often ambiguous indicators. Often the action is less vulnerable to price volatility due to fundamental news. Most systems based on indicators create great confusion in terms of volatility when reports fundamental analysis are released, with the risk that you may create unreliable signals. With specific training on the price action you could also exploit news to be able to collect large profits.

Analyzing the indicators a classic signal may disappear within a few minutes to reappear later. When this happens, you will probably lose any position. With the price action that analyzes the candles, however, you can be sure that once a candle has been completed as designed there is no risk that it can be changed by some event. The patterns of price action may not always be easy to read or translated into trading signals but you can be sure that a candle, once completed on a graph, will not change its shape. What would happen if instead one were to use the classic indicators.

With the price action you can concentrate on the indicator number one, or the price. In the next article we will further detail this concept and we will also see other reasons why it is important to use the price action in the currency market.

When you do Forex what you would ideally do is to open the first time all the positions that come out, perhaps by using a 4-hour chart. The real thing is that sooner or later we all will miss an opportunity to trade. But what do you do when it happens? How do you stick with a trading plan even if you lost a chance?

When you open positions it is important to always open the same position if you want to reach a certain price level. These types of positions are called stop orders. Use a “buy-stop” or a “sell stop” to achieve this goal. These positions are intended to wait until the price moves to a certain point on the graph, only then you can enter the market. These are orders that are waiting for the market to reach a certain price level. They can also be useful for those who will not or can not stand in front of the computer at all times.

There are those who, instead of opening a stop position, prefer to remain at the computer and manually open a position, when the price reached a certain level. So, if you forget to open a position and you can see this only at a later time, there are three things that can happen. The first is that the price has not yet reached the price of entry. The second is when the price has reached the price of entry, and could have been opened a position but the price has retraced the price. The third is when the price reaches the specified price and continues in that direction. A business that would be inserted in this case would make a nice profit.

We will see in the next article, case by case, how to behave.

George Soros, one of the biggest investors of all times, has decided to quit. Let’s retrace his history. In 1997, his philantropic tendencies led him to buy some Russian assets. He earned a billion dollars in shares in RAO Svyazinvest, in Russia, a state telecommunication company and continued to buy shares and Russian bonds. He did sell his positions not even after the publication of a piece of the Financial Times that advised the government to devalue the ruble of the 25 percent. Four days later, the Russian government followed his advice.

In a recent essay, Soros has echoed comments of an ex colleague. He states to have pursued a personal interest in his job, subject to legal and ethical limitations and was guided by a philantropic principle. If these two are in conflict, the public interest must prevail.

Soros has opened its first foundation, the Open Society Fund, in 1979, when his fund had reached about 100 million euros and his personal wealth had risen to about 25 million. His initial goal was to promote democracy and market economy in Eastern Europe. Today Soros manages funds through a network of foundations operating in 70 countries around the world, from the United States to Montenegro, to South Africa and Haiti.

In the ed of 188, he hired Druckenmiller in order to make him become his chief strategist to bring on the operations of the daily operations of its business activities, so that he could better concentrate on charity.

Druckenmiller was the architect of the transaction of $10 billion on the British pound, which then made ??the same Soros world famous as the only person capable of beating the BOE. Soros has urged the young to invest, encouraging him to increase his “bet”.

George Soros, the millionaire known in the world for winning a “forex” share, decides to terminate his manager career of hedge fund, job that he has done for more than four decades.

Soros, that will turn 81 in a while, has decided to return money to the investors of his company. The sum is about 1 million dollars that will be returned by the end of the year. His company will now focus on resource management for only Soros and his family. George is therefore leaving the company to his sons, Jonathan and Robert.

Soros expresses gratitude to those who have chosen to invest their capitals with the Soros Fund Management LLC in the last 40 years.

Those that do not know Soros, he is the man that in 1992 has earned a billion dollars betting on the fact that the Bank of England would be forced to devalue the pound.

Soros  was born in Budapest in 1930 and is one of the most influential investors of the world. When the nazists invaded the city in 1944, Soros’ father used false documents that identified them as non-jews.

After being in London, Soros arrived in New York at the age of 26 and became a trader by initially buying and selling shares. He had in mind to work for five years, enough time, it is estimated, to set aside $500.000 and return to England, where he continued his studies in philosophy.

Instead he remained in the world of finance and started his activity in 1973.

Over the years, Soros has made ??gains with heavy decision. For example, his fund has earned about $750 million by betting on a decline of the Thai baht in 1997. The Thailandiandere government has instead spent billions, unsuccessfully, to defend its currency. In the wake of the devaluation, Thailand was forced to cut public spending in exchange for an aid package of $17.2 billion from the International Monetary Fund.

The week has not started in the best way for Greece and the euro zone. Moody’s, the important rating company, has infact said that it downgraded the rating of the Greece’s sovereign debt of three notches, leaving the country with only one notch that separates it from the default, warning private creditors that risk to lose lots of money since the last rescue plan.

The rating company has stated that it had downgraded Greece’s rating from Caa1 to Ca, looking at a prospect of development of the country and, therefore, its credit rating. The combination established by the program of support of the European Union, which also includes investment by private traders in greek exchange titles, and the debt exchange proposed by major financial institutions will mean that private creditors will incur significant economic losses for their participations in the country’s public debt.

The rating reflects the current uncertainty about the development of the country and the market value that the title creditors will receive in exchange.

Also in the statement that the agency Moody’s announced, after the exchange of debt securities will be completed, Moody’s will reassess the risk profile of debt securities that are already in circulation and those newly issued by the greek government.

The aid program announced in fact implies that the exchange, since it is in a difficult situation, might be risky for individuals. In addition, Moody’s thinks that the Greek government bond default is practically possible to 100%, that’s also the reason for the downgrade.

The support package for Greece, remember, was approved last week.Sempre nel comunicato che l‘agenzia Moody’s ha reso noto, dopo che gli scambi di titoli di debito sono stati completati, Moody’s andrà a rivalutare il profilo di rischio dei titoli di credito che sono già in circolazione e di quelli di nuova emissione da parte del governo greco.

L’annunciato programma di aiuti implica infatti che lo scambio, dato che avviene in situazione di difficoltà, potrebbe essere rischioso per i privati. Inoltre Moody’s pensa che il default sui titoli di Stato greci sia praticamente possibile al 100% , ecco anche il perché del downgrade.

The support plan for Greece, remember, was approved last week.

Now we just have to think about what would happen to the sovereign debt of other countries in the euro area in case there is a default, therefore a further loss of ratings of the greek debt.

Amazingly the U.S. manufacturing sector has supported the dollar against major currencies during the session of yesterday, while the euro has remained low again because of the fears surrounding the Greek debt crisis. The value of the U.S. manufacturing sector was of 55.3, higher than the forecasts of 51.8. This was the twenty-third consecutive month of growth.

However, the global economic outlook remains uncertain. With the nervousness linked to the debt crisis of Greece which has now retreated into the background, investors are increasingly concerned about the “battle” fought in Washington on the roof of the $ 14.3 trillion of debt and financial deficit. Analysts warn about the repercussions that such a huge debt will have on the global economy if no agreement is reached by next August 2, as there may be an unprecedented default in the United States.

Most market participants are already looking to next week’s calendar of events, which also includes data related to the services sector and the payroll in June.

U.S. data are not all rosy, though. The expenditure related to the construction sector has reached its minimum value for almost 12 years, suggesting that the sector will remain a weight on the economy. Everything else is equal, and now that the interest of the crisis in Greece now seems passed, the dollar will weaken.

Meanwhile, it is always the situation in the Hellenic country that may limit the gains of the euro. A final agreement on a second rescue package for the country could not be reached until September. The European Ministers of Finance will hold a conference call over the weekend to finalize the details of the next tranche of funding for Greece.

We have already said in the last article that this week is crucial for Greece. The solution to the problem of the Greek debt will have to deal with the outstanding amount of past debts. The country has very limited options: heavy application of austerity measures or the debt cut.

Governments must decide which option it must be chosen, even if many think that the Greek situation will inevitably lead to the second solution, in this way there would be the possibility to cut the losses and start over.

Meanwhile in Greece there are protesters with drums and whistles, waving flags of Greece. The headquarters of these protests is Syntagma Square, in front of the Greek parliament. Surveys show that three quarters of the 11 million of Greeks oppose the measures.

Meanwhile, the unions have asked for a two-day national strike to put pressure on the government. Many companies, including the PPC electricity group, have already begun to write of outages in service.

The steps that are needed to be done in this austerity package, which should rise tomorrow, include higher taxes on heating, increases on fuel and lowering of the level of minimum income tax, from 12,000 euros to 8,000 euros. All this has alarmed some members of the ruling party. A series of defections over the past 13 months had already squeezed most of Papandreou’s majority to 155 seats out of a total of 300 seats in Parliament.

So far, three legislators have indicated that government would vote against the austerity package, even if they said that they are willing to support it provided to receive assurances from the government.

Meanwhile, the Deputy Prime Minister Theodore Pangalos said that parliament would approve the complex of the austerity package, but lawmakers can still block some of the specifically provided reforms.

Trading on the U.S. dollar continued to be very volatile due to the collapse of oil prices and the crisis of the U.S. economy. The oil dropped below $90 per barrel following the IEA statement that it would put on the market another 60 million barrels of crude oil to counteract the disruption of production due to the conflict in Libya.

The euro continues its series of uncertainties and risks, making the value of the currency pair EUR/USD to much lower levels, before the news that the couple IMF/EU has agreed to an austerity plan for a period of 5 years, news that has pushed up all the markets in a fairly aggressive way. The news could also create turmoil in European markets. Overall, the currency pair was traded at a minimum of 1.4125 and at a maximum of 1.4325.

The Japanese yen is very stable against the dollar as a result of the influx of capital into the Japanese currency, seen as a safe haven. There is forming a resistance at value 80.80 and support at value 80.

The pound broke through 1.6000 share in an extremely negative market. The general outlook is negative for the pound.

The Australian dollar lost ground after breaking key resistance, before gaining ground after the news concerning Greece and its crisis. The prospects are closely linked, as always, to the stock market movements, with great attention being given to China. Overall, the currency pair AUD/USD was traded at a minimum of 1.0453 and at a maximum of 1.0569.

Oil and gold have lost ground, reaching minimum values ??of the month. Oil has reacted angrily to the news of the IEA, but was able to recover a substantial part of the losses.

The Federal Reserve chairman, Ben Bernanke, has erased the speculations about another round of bond purchases from the FED, which increased the value of the dollar. Speaking after the policy statement of the Federal Open Market Committee, Bernanke has not said clearly that there would not be a further easing phase, but has also said that this move is highly improbable.

The current purchase program of the Treasury has sought to stimulate the U.S. economy by flooding the markets with dollars, a move that has diluted the dollar’s value.

The market has received Bernanke’s comments as a sign of reluctance towards a third relaxation, which has had positive effects on the dollar. The euro has lost the modest gains that had accumulated since that time and the dollar has strengthened also against the yen. The ICE Dollar index, that evaluates the dollar against a handful of currencies, has rose from 74.54 to about 74.85,

What does the FED expect from the market? The USA central bank continues to expect that the economic growth will recover during the year, but the interest taxes will still remain at the minimum values indefinitely. The market experts have then said that the market has problems that derive from several problems in Europe, therefore this is why there still is a weak situation.

The European leaders are fighting to try to reach an agreement on a salvage plan for Greece. The next deadline for the Hellenic country is expected to be next weak, when it has to approve the new austerity measures. Greece must let these measures pas in order to obtain the next financial support from the EU.

We will finish to analyse, in this article, the situation that the USA is facing referring to what the FED expected some months ago. Two important data are the consumers’ confidence and the spending, which both declined compared to the previous months.

Two positive data are the decrease oil prices, decreased of the 18% since last April 29, and of the average gas prices, which declined of almost the 8% in the last five weeks.

Both these price reductions allow to have a lesser weight on the shoulders of the consumers especially if a look to the third quarter of the year is given. Now it is expected that the growth of the gross domestic product of the USA could accelerate, from a annualized rate of the 2% to a tax of the 3% in the third quarter and of the 3.5% in the fourth quarter.

It was said in the past that the FED could take in consideration the opportunity to give new incentives on the market, considering that the recovery continues to be sluggish. This fact is supposed to be considered only later on in time for a simple reason, that the American central bank should want to re-invest the money from its wallet, sum that is of 2.6 trillion dollars in new government bonds.

What does this mean? Knowing that the central bank will almost surely keep the interest taxes by the zero, it could mean that the future situation, according to the FED, will be of growth.

Those who instead are against the actions of the FED say that the recovery that was report until now is false, since it deals only with a derivative of the government’s actions and of the loans of the FED. What now is expected from the USA market is an actual growth, without anymore helps from the central bank.