The overall forex market generally trends more than the overall stock market. Why? The equity market, which is really a market of many individual stocks, is governed by the micro dynamics of particular companies. The forex market, on the other hand, is driven by macroeconomic trends that can sometimes take years to play out. These trends best manifest themselves through the major pairs and the commodity block currencies. Large professional traders usually trade less often for longer periods of time and use a larger percent of their currency trading portfolio than day traders. Many successful short term traders have some long term trades on.
The DiCHI Forex Index takes a look at these trends by examining, testing and following theories..
DiCHI Forex Index Di=Directional C=Currency H=Height I=Indicator Index.
Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.