Forex Patterns and Probabilities: Trading Strategies for Trending and Range-bound Markets is an excellent book on the foreign currency exchange market, offering specific and detailed information about some of the most successful methods and strategies of foreign currency trading. In fact, it is unlike most other books on this same subject in that the information and advice it contains is specific, rather than somewhat broad and vague. This is an aspect of the book that truly sets it apart from the rest of the pack and makes it an excellent resource to consider adding to your library of foreign currency exchange market books.
The clarity of writing and ease of understanding are above average in Forex Patterns and Probabilities: Trading Strategies for Trending and Range-bound Markets, which is a real accomplishment when you consider that the subject can be complicated, dry, and even boring at times. Author Ed Ponsi has a real talent for taking otherwise complex subjects and relating them in a way that is thorough without being overwhelming or confusing. The writing is excellent, and is enhanced even further by the plentiful charts, graphs, and illustrations included throughout the book. Each one adds to the clarity and understanding of the topic at hand and does an excellent job of taking the reader step by step through the processes and methods set forth by author Ponsi.
Setting the stage for the book
Over the last decade or so, trading on the foreign currency exchange market has experienced literally explosive growth all over the world. This area of trading and investment, previously the nearly exclusive playground of large corporations, banks, and governments, is now increasingly populated and traded by individuals and independent traders. Their participation and success has grown tremendously thanks to the ease and convenience of online access to trading on the foreign currency exchange markets. It’s no wonder, then, that the marketplace for “how to” books on trading have also exploded over the last few years.
The challenge for traders of all levels, from novice to expert, is to sort through the very large (and growing larger) collection of books and resources to separate the ones that are legitimate and helpful from those that are frivolous and borderline in terms of the quality and accuracy of information they set forth. With all of this in mind, then, it is worth noting that Forex Patterns and Probabilities: Trading Strategies for Trending and Range-bound Markets definitely falls into the category of legitimate and helpful rather than frivolous and borderline.
Perhaps the best and most successful part of the approach this book takes is that is emphasizes the importance of understanding the basics of the foreign currency exchange market, how it operates, the environment in which trading occurs, and the best approach to successfully trading in what can be an extremely volatile and risky financial marketplace. Author Ponsi is particularly skillful in doing this, thanks in large part to his depth of experience and knowledge developed both as an active trader and an active trainer and educator of other traders.
Key topics and areas of discussion
As complex and changeable as the foreign currency exchange market is, sometimes it is hard to narrow down the most important key topics and areas of discussion to include in a book like Forex Patterns and Probabilities: Trading Strategies for Trending and Range-bound Markets. This book does an exceptionally good job of picking out the right topics and formulating the right discussions to give the reader a complete and comprehensive learning experience.
Author Ponsi divides the book into four main categories of guidance and discussion:
Section One – This part is where the author lays out the landscape that is the foreign currency exchange market. He does so in a way that is thorough, accurate, and easy to understand, thanks in large part to his generous use of examples and analogies that bring different trading situations and scenarios to life by comparing them to real world situations the reader might encounter as part of everyday normal living.
Section Two – This part introduces the concept of using specific trading strategies to participate in the foreign currency exchange market, particularly those that involve comprehensive and specific trending activities related to the marketplace. The author discusses several different strategies for successful trading, such as the FX-Ed Trend Technique and more.
Section Three – This part explores trading strategies and techniques that do not involve trending the markets, but rather on some unique tendencies of the market that occur. The strategies and techniques discussed include the Interest Rate Edge (based on hedge fund activities) and the Squeeze Play (based on market volatility circumstances) and more.
Section Four - This part focuses on mental discipline and patterns of behavior that are important to traders in the foreign currency exchange markets. The author brings an insider’s perspective and experience to these subjects, offering some excellent insights and guidelines based on the patterns of behavior most often associated with professional foreign currency traders who are quite successful. In terms of mental discipline, there is a good discussion of the importance of mindset and mental approach, including how to avoid becoming trapped into common mental mistakes of the novice or amateur trader.
As you can see, the topics and subjects included in Forex Patterns and Probabilities: Trading Strategies for Trending and Range-bound Markets are significant and appropriate to the subject at hand. What’s more, the book covers these topics in a way that is thorough, easy to understand, and accurate.
Summary
Of the many hundreds of books in the marketplace offering information and guidance about the foreign currency exchange market, Forex Patterns and Probabilities: Trading Strategies for Trending and Range-bound Markets is one of the most unique and the most informative. It offers a terrific combination of technical information, professional insight, and real world discussion about the risks and potential benefits of the Forex market. It is well worth adding to your library of foreign currency exchange market resources.