Important to know what makes the forex market move.

Just like in the great Star Wars world, behind the trend lines, double tops, and head and shoulder patterns, there is a fundamental force behind these movements. This force is called the news! To understand the importance of the news, imagine this scenario (purely fictional of course!) Let’s say, on your nightly news, there is a report that the biggest software company that you have stock with just filed bankruptcy. What’s the first thing you would do? How would your perception of this company change? How do you think other people’s perceptions of this company would change? The obvious reaction would be that you would immediately sell off your shares. In fact, this is probably what just about everyone else who had any stake in that company would do. The fact is that news affects the way we perceive and act on our trading decisions. It’s no different when it comes to trading currencies. There is, however, a distinct difference with how news is handled in the stock market and the forex market.