wealth in fx

  Fundamental Analysis
Before we dive into the strategy, let’s review some of the basics:
Market is driven by speculation. Fundamental events change speculations, thus if we
want to understand the market, we need to pay attention to fundamental events…
Without getting too much into
Fundamental Analysis, key focuses are
Central Bank and Monetary Policy when
it comes to market direction. Forget
about CPI, PMI, Retail Sales, or any other
economic acronyms; if you just focus on
Central Banks and their respective
monetary policies, you’ll be right on the
money 9 out of 10 times.
Remember when it comes to trading currencies, you are either right or wrong, since you
can only go in one of two directions: BUY or SELL. If you can identify market direction


 you’ve already won 50% of the battle. Think about it again, just by picking the right
direction in your trading, your trading result can improve significantly overnight.
Of course, I’m not discounting all other important aspects to trading, I’m sure they are
all important, but with little patience and practice, there should be no reason why you
couldn’t achieve success in Forex, if you can successfully pick the right direction.
Trend Changing Event (TCE)
The focus of this special report is Trend Changing Event. TCE by definition is a type of
market event that has the potential of changing market trend. Almost all TCEs are
related to central banks or its monetary policies, or at least have something to do with
them. Below is a brief overview:
Trend Changing Event (TCE)
TCEs are high impact news releases or combination of releases that change the long,
medium, and short term trends of a currency. Market is usually taken by surprise when
such event takes place and the effects are usually long-lasting.
A sudden change in monetary policy could also be classified as a TCE; however, not all
monetary policy surprises are TCEs.
TCE doesn’t really occur often, but you can usually spot it in the chart. Here’s a chart of
USDJPY that pinpoints a TCE eventwww.forextraderbeverages.wordpress.comIn this particular case, the effects of TCE moved USDJPY from 78.50 to 104.00 in just
under a few months, for a total of 2600+ pips!
Imagine if you were to get advanced notices when USDJPY was trading around 80.00
that in a few months it would be above 100.00, how much is this information worth to
you?
Let’s take a step further and expand our minds here a little, because aside from the
USDJPY, EURJPY moved over 3000 pips, GBPJPY also moved over 3000, and not
mentioning AUDJPY moved over 2600… All of these pairs capitalized on JPY weakness.
Here is what I’ve done during that period of time after identifying this TCE