Volume

Four easy rules to follow regarding Volume:

1. When prices are rising and volume is increasing, prices will continue to rise. The uptrend is being confirmed.
2. When prices are rising but volume is decreasing, the uptrend is losing momentum and may be near the end.
3. When prices are falling and volume is increasing, prices will continue to fall.
4. When prices are falling and volume is decreasing, the downtrend is losing momentum and may be near the end.

Forex Trading different roles in the FX Market

Central Banks and Governments

Policies that are implemented by governments and central banks can play a major role in the FX market. Central banks can play an important part in controlling the country's money supply to insure financial stability.