The currency market is an international exchange where governments, businesses, and individuals can buy or sell one currency against another. The fundamental reason for the currency market’s existence is to facilitate the exchange of currencies between countries whether it is for businesses transactions or for individuals who are traveling abroad. Trading the currency market has become very popular for retail investors as there are often some very strong trends and volatile price action occurring in the currency market. This allows for small traders and investors to use the currency market as a quality source of diversification for their investments.
Generally speaking, the foreign currency market is more tailored for technical trading, or chart reading, than what the stock market is. This is because price action in the currency market tends to be dependent more on macro events rather than the micro events like those that occur within an individual company that might influence the price movement of a specific stock. This fact makes the currency market an easier to read trading vehicle due to the very pronounced trends which occur as a result of global variables that typically take more momentum to shift than variables on smaller levels.
Another factor that contributes to the FX currency market being a great market for technical traders is that it is open 24 hours a day, 6 days a week. This means that no matter what your schedule is like you can always find at least a small amount of time each day to look at the charts and check for any relevant price action setups that may have occurred since the previous day. Unlike the stock market, there is no need to wait for market hours to place a trade in the currency market, if you see a great setup at 2 a.m., then you can simply buy or sell as you see fit without having to wait for the market to open.
Since the forex currency market is so well adapted to technical trading and chart reading, it only makes logical sense to learn how to use price action setups to easily and effectively navigate the market. With strong trends almost always present in some of the currency pairs; it is very possible to get into some great moves off of a simple pin bar setup or various other price action setups. There is no need to analyze balance sheets or try to figure out P/E ratios or any other confusing fundamental variables of the sort. Learning to read a naked price action only chart will give you the ability to analyze all market variables from the perspective of the only indicator that really sums up all the information in the forex market, this is indicator is price action.
The price action strategies that Nial Fuller teaches will give you an effective base to build your currency market trading plan on. These price action strategies are simple yet effective setups that occur over and over periodically in the currency market and so they provide a very consistent method to build your trading strategy around. Nial teaches a unique way of looking at and thinking about price dynamics within the foreign currency market.