Categoria: Forex Trading

An ascending triangle is a powerful technical analysis pattern with a predictive accuracy of 83%. A bullish flag is a popular yet widely misunderstood technical analysis pattern characterized by a rapid upward price trend followed by parallel downslope consolidation in price. The price increase resembles a flag pole, while the price consolidation is the flag.

It should be noted, like most approaches and models in finance and investment, that patterns like these are not 100% reliable. While the rising wedge pattern is a well recognized tool among traders and investors for its predictive power, it should be used as part of a diversified trading or investment strategy. The reversal is either bearish or bullish, depending on how the trend lines converge, what the trading volume is, and whether the wedge is falling or rising. Some rising wedges are vectored at steeper inclines than others, known as a reversal pattern. They were starting wide at the bottom and moving into a point at the top as the price began to trade in the narrowing range.

  1. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.
  2. After a stellar performance in the last couple of years, Apple stock appears to have entered a neutral zone.
  3. The in-between, sideways, messy, wish-it-didn’t-exist areas and draw a rough shape tracing the…
  4. The shallower the lows, the more of a decrease in selling pressure.

On the other hand, the rising wedge is still a technical indicator that only generates a signal. As every other indicator, it is not, and it can’t be 100% correct in predicting future price movements. Thus, it is best applied alongside other technical indicators. The best possible way to identify the key strengths and weaknesses of a rising wedge is to start analyzing the pattern yourself. For this purpose, MetaTrader 5 trading platform offers a great trading environment which allows you to focus on the price action and get more familiar with this and other chart formations. Together with the rising wedge formation, these two create a powerful pattern that signals a change in the trend direction.

We’re also a community of traders that support each other on our daily trading journey. A good upside target would be the height of the wedge formation. As you can see, the price came from a downtrend before consolidating and sketching higher highs and even higher lows. 2009 is committed to honest, unbiased investing education to help you become an independent investor. We develop high-quality free & premium stock market training courses & have published multiple books.

Traders can use trendline analysis to connect the lower highs and lower lows to make the pattern easier to spot. A break and close above the resistance trendline would signal the entry into the market. It is wide at the top and contracts to form the point as the price moves lower; this gives it its cone shape.

What is a Falling Wedge Pattern?

As the price action continues to fall, the trading range tightens, indicating that selling pressure pushes the stock downward. Ultimately, there is a 68% chance of an upwards breakout as buyers take control. There are currently two trading platforms offering bullish chart pattern scanning and screening. TrendSpider and FinViz enable complete market scanning for bullish and bearish patterns. Finviz is a good, fast, and free pattern scanner, whereas TrendSpider enables full backtesting, scanning, and strategy testing for chart patterns.

How important are bullish patterns?

There is a strong bias about chart patterns and their interpretation in the technical analysis space. It is a very common belief that a rising wedge forms bullish wedge pattern bearish sentiment and a falling wedge forms bullish sentiment. In order to understand this, we need to dig a little bit about how such concepts could…

This is the natural exposure why the chart patterns are garbage. A rising wedge formed after an uptrend usually leads to a REVERSAL (downtrend) while a rising wedge formed during a downtrend typically results in a CONTINUATION (downtrend). Today I want to discuss with you the bullish movement or bullish momentum. Beginning of observations

To begin with, we need an uptrend. If you open long positions when there is an uptrend in the market, you will make a profit more often.

The company has a wide range of product portfolio which makes it appeal to a wide range of customer demand. Below are the company’s diverse offering and their respective revenue contributions. The waves are made when the price moves inside a narrowing range.

There was a major double bottom formation that took place before the price moved up to the top of the falling wedge. For this reason, it is commonly known as a bullish wedge if the reaction is to the upside as a breakout, aka a falling wedge breakout. Ideally, you’ll want to see volume entering the market at the highs of the ascending bearish wedge. This is a good indication that supply is entering as the stock makes new highs. A good way to read this price action is to ask yourself if the effort to make new highs matches the result. Rising Wedge appear in uptrend and it indicates that the…

TRADING ROOMS AND LIVE STOCK TRAINING

It is composed of two converging trendlines connecting highs and lows and followed by a breakout to the upside. The triple bottom chart pattern is considered a reliable reversal point in the market, with an 87% success rate in bull markets. This is because buyers begin to take control of the market when the price breaks above the intervening peaks, and the trend could change from bearish to bullish.

Trading the Rising Wedge

The main strength of an ascending wedge pattern is its ability to warn us of an imminent change in the trend direction. Despite the fact that the wedge captures the price action moving higher, the consolidation of the energy means the breakout is likely to happen soon. Given that the lows are progressing faster than the highs, the wedge is squeezing towards the point where the two trend lines intersect. Despite a push from the downside, the buyers are finding it difficult to break out to the upside, which triggers a move in the opposite direction.

In this article, we’ll delve into the details of the rising wedge pattern, explore its characteristics, and… Technical analysis or Charting allows investors to use a range of patterns to assist them with timing their entry to and exit from positions. In contrast to triangles, which are continuation patterns, Wedges are reversal patterns (like Head https://1investing.in/ & Shoulders and Double/Triple Top/Bottoms). They signal a change of trend – via breakout or breakdown – following consolidation within a narrowing range where both support and resistance are either rising or falling. The falling wedge pattern occurs when the asset’s price is moving in an overall bullish trend before the price action corrects lower.

Stock prices fluctuate over time, affected by numerous factors, and the prediction of their changes is at the core of both long-term and short-term financial investing. The main objective of this analysis is to evaluate and compare the various classification statistically sound machine learning for algorithmic trading of financial instruments algorithms for the automatic identification of favourable days for intraday trading using the Croatian stock index CROBEX data. Intra-day trading refers to the acquisition and sale of financial instruments on the same trading day.

Time series prediction is a challenge for many complex systems, yet in finance predictions are hindered by the very nature of how financial markets work. In efficient markets, the opportunities for stock price predictions leading to profitable trades are supposed to rapidly disappear. In the growing industry of high-frequency trading, the competition over extracting predictions on stock prices from the increasing amount of available information for performing profitable trades is becoming more and more severe. With the development of big data analysis and advanced deep learning methodologies, traders hope to fruitfully analyse market information, e.g. price time series, through machine learning. Spot prices of stocks provide a simple snapshot representation of a financial market.

Statistically Sound Machine Learning for Algorithmic Trading of Financial Instruments

The goal is to discover relation between selected financial indicators on a given day and the market situation on the following day i.e. to determine whether a day is favourable for day trading or not. The problem is modelled as a binary classification problem. The idea is to test different algorithms and to give greater attention to those that are more rarely used than traditional statistical methods. Semantic Scholar is a free, AI-powered research tool for scientific literature, based at the Allen Institute for AI. You can download the paper by clicking the button above. We are preparing your search results for download …

  • We are preparing your search results for download …
  • Semantic Scholar is a free, AI-powered research tool for scientific literature, based at the Allen Institute for AI.
  • The problem is modelled as a binary classification problem.
  • Intra-day trading refers to the acquisition and sale of financial instruments on the same trading day.
  • With the development of big data analysis and advanced deep learning methodologies, traders hope to fruitfully analyse market information, e.g. price time series, through machine learning.

One of such advantages is that broker has a wide range of services and instruments. For example each client has access to a large number of financial instruments, which opens up a lot of trading opportunities. In addition broker has excellent set of platforms and mobile applications.

Hello Haji Wan Ridwan R,

Thank you for taking the time to leave such a positive review! We are thrilled to hear that you are enjoying our academy and finding it helpful for expanding your knowledge base. Our team works hard to provide comprehensive educational resources to our clients, and we’re glad to know that it’s paying off. Please don’t hesitate to reach out if you have any questions or feedback for us. We look forward to continuing to serve you as your trusted brokerage firm. This company has advantages that are significant and profitable regardless of traders’ opinions.

  • Keep enjoying the journey with LimeFx!
  • I was surprised to see that this broker has a social-trading feature too, there are only a handful of brokers out there offering this interesting option.
  • Hi Aryo,That’s fantastic to hear about your positive experience with LimeFx!
  • So fear not, your personal information at LimeFx is under maximum protection, as well as your funds.
  • I quickly get answers to all my questions.

Because I am still a new trader, I cannot really tell you much about the technical trading experience with this broker but I am led to believe that they are also really good. However, I can tell you a lot about the experience as someone new to trading.The broker LimeFx has a very broad educational base, which breaks down everything into simple terms. LimeFx offers a perfect trading environment for beginners. Not only for them, but in this review I would like to underline that the broker is beginner-friendly, for two major reasons. The first reason is their trading academy.

We strive to provide an intuitive, fast, and stable platform with a plethora of useful charting tools. Keep exploring and thriving with LimeFx! Hello Fernando,We’re delighted to hear that our YouTube videos piqued your interest in the trading limefx review field and led you to explore our broker! 😎 Our specialists work hard to provide insightful content, and we’re thrilled that you found it engaging. We’re here to support your journey and provide valuable resources for your trading experience.

I think I will give the broker a chance, in the end you never know until you try it. Their custom academy is worth its weight in gold! I daily check some interesting materials and it helps to gain new knowledge almost every day. I believe even professional traders can, check out this academy to refresh their knowledge about trading sphere.

I tried TradeCopier

The most mentioned feature of this broker is the education. All the other aspects of the company are still top quality. Honest bro advice, don’t rely on these terrible so called “Copy traders”.

You can trade across all of your devices on an intuitive trading platform with top trading conditions. There is a generous selection of financial instruments to choose from and account types for everyone. Beginners can get access to free educational resources and a demo account to practice trading online. When you are ready, you can open a real live trading account in just minutes with a deposit starting from just $100. This is all backed by 24/5 customer support.

  • At LimeFx, we strive to provide a range of trading options and tools to cater to the diverse needs of our clients.
  • I trade here without second thoughts knowing that my funds and data are secure, while trading itself represents a mix of modernity and advancement.
  • LimeFx will provide the tools and support to help you develop your trading skills and unlock your potential.
  • It’s a free investment into your knowledge base expansion.

We appreciate your balanced perspective on our services and are pleased to hear that you have had a positive experience with our platform. Thank you for choosing LimeFx as your CFD broker, and we look forward to serving you in the future. Hello Carlos,We’re delighted to have you onboard and to hear that our platform keeps you engaged and satisfied! 🚀🌟 We’re committed to maintaining a stable and high-quality service. Whether you prefer manual trading or using our TradeCopier, we’re here to support your success. I want to quickly give a shout-out to the education section of this broker📖.

The Trustpilot Experience

🤩😃 If you have any more questions or if there’s anything else we can assist you with, feel free to reach out. Hi RRamon,We’re thrilled to hear that our variety of account types is helping traders unlock their potential! 🌟🔓 Whether it’s the Standard account or an advanced one, we’re here to cater to your needs. No restrictions, just choices and opportunities.

Questo è uno dei broker forex più…

And I wanted to engage in copy trading for some time. Now I follow a couple of traders and trade manually as well. I think the bottomline of my review would be – https://limefx.vip/ try everything. You never know until you try it with your own hands. Hello Khalid,We’re glad you didn’t throw in the towel and decided to give LimeFx a chance!

Be careful for your hard earned money

🙌 Exploring copy trading can be an exciting next step, allowing you to leverage the expertise of other traders. If you ever have questions or need assistance with any feature, feel free to reach out either via email or through the live chat available on our website 😉. Wishing you continued success in your trading journey! LimeFx excels with a couple of things I reckon. But the main thing to highlight is the trading Academy.Firstly because the broker that provides a comprehensive educational materials for beginners deserves a lot of credit.

LimeFx aims to provide a diverse range of assets for traders while continually improving its offerings. I want to write not just review about the service of this broker, but also give advice. If you, like me, do not have much experience in forex trading, you can choose an easier way. I started copying trades of more experienced and successful traders. In addition, I am also studying at broker’s academy and soon I will be able to trade on my own. And this will allow me to get income from two sources.

one of the most decent and proper online trading brokers i have yet to discover! glad to trade here.

If you are looking for the lowest spreads possible, then you might want to consider the floating spreads account. Either way, both options have very low spreads on par with some of the top brokers. This is especially the case when you consider that they do not charge a commission on top like most do. The MT4 platform comes fully loaded with all of the trading tools that you need to analyse the charts of your favourite symbols for potential trade opportunities. There are also thousands of free and paid add-ons that you can install to further enhance the already substantial capabilities of this leading platform. Whatever your idea for a trading strategy, you can bring it to life by creating customised trading templates for all of your charts.

With LimeFx, you can always improve your trading knowledge with unique educational resources, including webinars, podcasts and trading videos. These are hosted by experts and can help you to sharpen your skills and become a better trader in the long run. This emphasis that the broker wants to encourage informed trading decision and cares about their trader’s success. You can learn in your own time and take advantage of a free demo account to put what you have learned into practice. LimeFx will provide the tools and support to help you develop your trading skills and unlock your potential.

LimeFxFX offers platform versions for both Windows and Mac desktops. Guaranteed stop order fees, overnight funding fees, and currency conversion fees are not separately specified by LimeFxFX. Incorporated into the spread, offering cost-effective trading for CFDs. People who write reviews have ownership to edit or delete them at any time, and they’ll be displayed as long as an account is active. I have got very good experience from you and I humbly request you to please share the updated news related to forex market with me as well.

The Copy Trading app is available for Android and iOS devices. The company’s educational library is well maintained and offers rich learning resources that includes webinars, articles, platform tutorial videos and a video course. The mobile app offers a wide array of tools and indicators ranging from trends, to oscillators, to volumes and lastly bill Williams.

The third-party risk of choosing LimeFxFX in Malaysia is higher than all the top-tier regulated CFD brokers in Malaysia. If you’re interested in comparing LimeFxFX against other popular brokers in the industry, check out our LimeFxFX Vs pages. Our team has compiled a series of detailed LimeFxFX comparison articles, pitting the LimeFxFX platform against some of the best-rated LimeFxFX competitors in the market.

cTrader Open API available on LimeFxFX

In such a scenario, LimeFxFX offers the ability to reset a customers account balance to zero. Any processing fees from your bank will have to be incurred by you. Yes, trading via LimeFxFX is a nice and decent experience indeed.

  • If you want to expand your research, and evaluate some options similar to this broker, you can consult the alternatives to LimeFxFX.
  • The broker also offers wonderful features that are unique to the company alone.
  • This LimeFxFX review breaks down every one of the applicable non-trading charges for you in detail.
  • Please keep using it, and we’ll provide you with the best user experience.
  • LimeFx Markets Incorporated is the brand’s international entity.

You can sign up for a demo account to acquaint yourself with LimeFxFX platform. As a trader, you should feel confident that your financial investments are in good hands with LimeFxFX. That’s why it’s essential to understand the LimeFxFX company policies and practices before making any investment decisions. By doing your due diligence and understanding LimeFxFX platform, you can make informed investment choices that align with your financial goals. So take the time to research LimeFxFX thoroughly and make the most of your online investing experience. Online investing with LimeFxFX can be just as risky as traditional offline investments.

LimeFxfx Highly Recommended

If you wish to add anything else, contact us at We’d love to hear from you.Kind regards,LimeFx Rep. And more than likely https://limefx.name/ a no-go for wherever in the world you may be located. Yes, LimeFxFX allows withdrawal of funds through multiple methods.

LimeFxFX Islamic Account

The task becomes even more daunting when considering the vast number of online brokers like LimeFxFX available, each with unique features, fees, and regulations. LimeFxFX has over trading tools to support all types of traders. These instruments are lively and convenient for both the new and experienced traders.

Brokers By Platforms

The information provided by the applicant must be accurate, relevant, and up-to-date. After all the required details have been completed and submitted, a confirmation email will be sent to the applicant’s account. A Trader has to deposit at least $50 USD to earn a deposit of $25 USD.

This is a high-risk investment and you should not expect to be protected if something goes wrong. When a trading account goes unused for a certain period, brokerage clients may be charged an account inactivity fee. To avoid such fees, clients may need to fulfill specific trading activity requirements outlined by LimeFxFX terms and conditions. It’s important to note that inactivity fees are not unique to online trading accounts, as many financial service companies may also charge them. Don’t be scared off by brokers like LimeFxFX charging a minimum deposit to open a trading account. Brokers charging higher minimum deposits may offer additional premium services on their platforms that are not free on other platforms.

The kinds of trading charges and the prices vary from broker to broker. Many unethical brokers attempt to pressurise users into bigger funding for premium services. Dealers can expect trading conditions to be reasonable, honest and transparent.

You may use this feature to build your faith in the machine and yourself and your trading strategies. The broker also offers wonderful features that are unique to the company alone. In addition to keeping the client’s investments safe and separate from its capital, the broker ensures maximum transparency. However, the company’s offshore entity is not regulated by a tier 1 regulatory body, which offers a less sense of security. 74% of clients give the broker a 5 star rating, cementing its place as one of the best forex brokers.

It is important to remember that not all regulators are created equally. The products, features and protection can all vary depending on the entity that you decide to open a trading account with. When it comes to education, LimeFxFX realizes the importance limefx forex broker of your continued development and progress in the sector. They particularly cater very well for the new traders with an excellent basic training in forex including topics like how to get started with the broker, ECN trading, and technical analysis.

In terms of education, there are platform tutorial videos and a basic forex trading course, which would probably be okay for absolute newbie traders. A side note, with something that we’ll discuss later, is that the customer support person wasn’t able to communicate major details regarding the regulatory processes of LimeFxFX. But, it must be said that depositing funds and holding your capital with LimeFxFX is definitely a higher risk than trading with other, more regulated brokers. There was one slightly different trading platform, which is the LimeFx CopyTrading software. This allows CFD and Forex traders to either copy other traders’ trading signals or let you broadcast your own trading signals to other traders on the social trading platform. The LimeFxFX platform is essentially a white-label licensed version of MT5.

These monetary tools restrict the total currency supply in the market, resulting in lower inflation rates and stronger currency value. However, traders should also be aware that hawkishness can lead to volatility in the forex market. As central banks raise interest rates or tighten monetary policy, it can lead to increased uncertainty and volatility in the market. Traders should be prepared to adjust their positions accordingly and manage their risks carefully. Hawkish refers to when a central bank’s policymakers talk about raising interest rates, slowing down economic growth, or even easing up on inflationary pressures.

When inflation is high, it erodes the purchasing power of consumers, making it more expensive to buy goods and services. This, in turn, can lead to reduced consumer spending, which could slow down economic growth. Currencies tend to move the most when central bankers shift tones from dovish to hawkish or vice versa. When a central bank adopts a dovish monetary policy, it sends a signal to the market that it is willing to take a more relaxed approach to controlling inflation. This can lead to a decrease in demand for the currency, as investors see it as less attractive.

What does dovish mean?

In conclusion, the term hawkish in forex trading refers to a monetary policy that aims to control inflation by increasing interest rates or reducing the money supply. Central banks or policymakers who adopt a hawkish stance are perceived as being more proactive and bullish about the economy’s future prospects. The hawkish stance can have a significant impact on the value of currencies, and traders can use it to make informed trading decisions. Understanding the hawkish/dovish stance of central banks is crucial for success in forex trading. Central bankers can be said to be hawkish if they talk about tightening monetary policy by increasing interest rates or reducing the central bank’s balance sheet.

This article will explore what does it means in the context of forex and its impact on currency markets. Hawkishness in forex refers to a monetary policy stance that is focused on controlling inflation by raising interest rates or tightening monetary policy. This stance can have a significant impact on the forex market, as it can lead to a stronger currency and increased volatility. Traders can use hawkishness to their advantage by identifying currencies that are likely to benefit from a hawkish monetary policy stance. However, traders should also be aware of the potential risks and manage their positions carefully. In summary, hawkish and dovish are two terms used to describe the monetary policy stance of central banks.

  • This, in turn, can lead to reduced consumer spending, which could slow down economic growth.
  • We also offer a range of trading guides to supplement your forex knowledge and strategy development.
  • It is basically good for the currency in question when a central bank is hawkish.

They increase interest rates so as to prevent the economy inflation from going very high and decrease interest rates to prevent economic deflation and stimulate GDP growth. If everyday goods are too expensive, then it is unable for people to buy goods and services. That’s why central bank doesn’t want the economy to grow at fast pace because it is not sustainable.

Unexpected Hawkish policy

Central bank policy makers determine whether to increase or decrease interest rates, which have significant impact on the forex market. Central bank policy makers determine whether to increase or decrease interest rates, which have significant impact on the forex market. You have probably heard a financial news presenter say something along the lines of “The central bank governor came out slightly hawkish today after bouts of strong economic data”.

There are several indicators that traders can use to identify hawkishness in forex. These include:

Dovish is an expansionary monetary policy in which central banks decrease interest rates to increase the country’s money supply. A fall in interest rate directly decreases the country’s currency value in the forex market as lower interest rates signal pessimistic economic growth. As a result, foreign direct investments fall, and so does the demand for the country’s currency. The fall in demand due to currency depreciation leads to a further fall in the currency’s value. The hawkish stance is often used by central banks or policymakers when the economy is growing rapidly and inflation is high. In this scenario, the central bank may increase interest rates to slow down the economy and prevent prices from rising too quickly.

What is an ecn account in forex?

The hawkish stance can also be adopted when there are concerns about asset bubbles or excessive risk-taking in financial markets. Hawkishness is a term used to describe a monetary policy stance that is focused on controlling inflation. This stance is typically characterized by a central bank that is more concerned with keeping inflation under control than with promoting economic growth. A hawkish central bank is one that is focused on raising interest rates or tightening monetary policy to control inflation. Hawkish is a contractionary monetary policy in which central banks increase interest rates to lower the country’s money supply. A rise in interest rate directly increases the country’s currency value in the forex market as higher interest rates attract more foreign investment that increases demand for the country’s currency.

Therefore, a hawkish stance by one central bank can lead to a higher interest rate differential and increase the attractiveness of a currency. Forex trading is a complex and dynamic market that involves different elements, including political and economic factors, which affect the value of currencies. As such, traders use different terminologies to describe their strategies, opinions, and the market conditions. One of the terms commonly used in forex trading is hawkish, which refers to a particular stance or behavior of central banks or policymakers. The opposite of hawkishness is dovishness, which is characterized by a central bank that is more focused on promoting economic growth than on controlling inflation. A dovish central bank is one that is more likely to lower interest rates or ease monetary policy to stimulate economic growth.

So by being hawkish, they try to keep the economy growing at more reasonable pace. Central bank usually do this by raising the interest rates, which increase the value of currency. Conversely, when a central bank adopts a dovish stance, it can lead to a decrease in demand for the currency, as investors see it as less attractive.

As a result, we assume the USD/EUR exchange rate to drop from 2 to 1.5, implying that now only 1.5 US dollars instead of 2 are needed to purchase one Euro, making the Dollar cheaper in the market. The falling demand for the USD will further decrease its value in the market, leading you to place short or sell orders for the USD. The rising demand for the Dollar will further increase USD’s value in the market, leading you to place long or buy orders with respect to the USD. In regard to the way markets think of the central bank’s statement, the currency markets will normally react accordingly. The term is used in fighting inflation when it begins to rise past the central bank’s target rate. Higher interest rates make it more expensive for consumers and businesses to borrow money.

It is the Fed’s responsibility to balance economic growth and inflation, and it does this by manipulating interest rates. Esther George, the Kansas City, Mo., Federal Reserve (Fed) president, is considered a hawk. George favors raising interest rates and fears the potential price bubbles that accompany inflation. Keep reading to learn more about hawkish and dovish policies and how to apply this knowledge to your forex trades.

In this case, Hawkish often means that policymakers want to control inflation in order to set their own course independent of any other pressures. Janet Yellen, Fed chief from 2014 to 2018, was generally seen as a dove who was committed to maintaining low lending rates. Jerome Powell, named to the post in 2018, was rated as neutral (neither hawkish nor dovish) by the Bloomberg Intelligence Fed Spectrometer. Hawkish policies will likewise tend to reduce a company’s desire to borrow and invest, as the cost of loans and interest rates on bonds rise. Moreover, companies will be less eager to hire and retrain workers in such an environment. Usually, this expression is used for interest rate report that presumes the growth of upcoming interest rate.

Fluctuation in currencies can be expected when the central bank shuffles tone from hawkish to dovish or vice-versa. Central bankers can be stated as Hawkish if they are thinking of securing Hawkish financial policy by raising interest prices or decrease the central bank’s balance sheet. A financial policy proves to be Hawkish if it presumes the growth of upcoming interest rates. Central bankers are also Hawkish if they are optimistic about the financial growth outlook and hope inflation will grow. This can involve analyzing economic data, such as inflation rates and GDP growth, as well as keeping track of any policy changes announced by central banks. The Federal Reserve undertook one of the most aggressive hawkish stances in history last year to counter the burgeoning inflation crisis.

Inflation hawks believe that low target inflation rates, around 2% to 3%, should be maintained, even it comes at the expense of economic growth or employment. It is the job of the trader to watch for clues and economic data that could shift the tone of the central bank to either more hawkish than currently, or to dovish. When a central banks’ monetary policy stance moves more towards the left (dovish) hawkish meaning in forex their currency could depreciate against other currencies. Generally, words used that indicate increasing inflation, higher interest rates and strong economic growth lean towards a more hawkish monetary policy outcome. While hawkish monetary policy is helpful to stabilize prices, if interest rates are high for too long, it could decrease employment and lead to a decline in economic growth.