FOREX MARKET page 2

Usually, the word "rally" is associated with racing. But it has another meaning besides the competition. In stock trading, the notion of a rally is used to refer to a period during which there is a rush of assets on the market. As a rule, it is expressed in the sharp increase of almost all quotes and the increase in total sales volume. Simply speaking, a market rally is a short period, when investors are trying to manage to buy more stocks with the maximum profit for themselves.

Key events: Eurozone - CPI (YoY) (Oct)   The economy does not stand still, and the figures of more than three weeks ago do not reflect the current situation. Time, it should be said, has generally flattened lately, and what was going on a few weeks ago may well be considered "old times." For instance, the U.S. Consumer Confidence Index fell from 107.8 to 102.5 in October, and the manufacturing shipments index from the Richmond Fed fell to -10, instead of the -5 the market was forecasting.

Any price movement can move in one direction only for a limited period of time. After that the quote changes its trend, goes to a sideways trend or starts an opposite trend. It is quite difficult to predict such changes, that is why modern traders invent more and more methods of market analysis. By understanding when a correction begins, traders can determine the probability of the next reversal and place appropriate orders.

Economic indicators are reports that include financial and economic data that are published by government agencies and private entities regularly. These data help market observers track the current state of the economy and make their predictions, which most financial market participants will then rely on.

For all traders, whether beginners or professionals, a very important thing to remember is to use proper capital management techniques. Considering that trading is a skill that is improved through experience, traders must learn how to avoid forex risk. Traders will avoid forex risk if they pay attention to the factors that affect the forex market and make a trading strategy before trading live.