1699,202.00100
It is interesting to note that as of 4/21/2006 only six world currencies have a parity ratewith  the  USD  greater  than  1.0000:  Kuwaiti  Dinar  (3.42407),  Baharaini  Dinar  (2.65266),Omani  Rial  (2.59774),  Cypriot  Pound  (2.14777),  British  Pound  (1.78280),  and  the  Euro(1.23450). Coincidentally, at the bottom of the list, both alphabetically and parity-wise, isthe Zimbabwe Dollar, which requires over 99,000 to equal one USD.
Additional information on current exchange rates can be found at http://money
central.msn.com/investor/market/rates.asp.
APPENDIX C
Global Banking Hours
P rice  ﬂuctuations  in  the  spot  currency  markets  are  essentially  news-driven.  Or
more accurately, it is the human reaction to news-driven events that makes trad-ing possible and proﬁtable. How traders interpret these news events determinesin  which  direction  the  market  will  travel.  As  in  all  ﬁnancial  markets,  the  foreign  ex-change also has its share of contrarians who keep runaway breakouts in check whilesupplying additional volatility to the overall situation.
Despite all the fundamental and technical inﬂuences on the foreign exchange, onemajor constant in determining periods of high volatility is the hours of operation for thecentral banks of each major currency country.
The  following  table  emphasizes  the  importance  of  the  effect  of  time  of  day  onForex  market  activity  and  volatility  based  on  hours  of  operation  around  the  globe.Because banking hours vary from country to country, we have arbitrarily set hours ofoperation from 9:00 A.M. to 5:00 P.M. for consistency. The top row is expressed as Cen-tral European Time (Greenwich Mean Time + 1 hour), which aligns with the CentralBank of Europe in Frankfurt, the most prestigious central bank in the European Mon-etary Union.
The table allows traders to view overlapping time periods when central banks for dif-
ferent currencies are operating and thus guarantee a certain degree of mutual activity.
For example, when banks open in New York City at 9:00  A.M. EST, the Frankfurtbank has already been operating for six hours. So there is a two-hour overlap of trad-ing  in  the  EURUSD  currency  pair  on  both  sides  of  the  Atlantic  Ocean  (9:00  A.M. to11:00 A.M. EST). This can be readily recognized in the Time of Day Activity Chart forthe EURUSD pair.
219
220
APPENDIX C
FIGURE C.1 Global Banking Hours
If we are interested in initiating a trade in the EURHKD cross rate pair, we note thatthere  is  a  one-hour  overlap  in  banking  operations  between  central  Europe  and  HongKong which occurs between 9:00 A.M. and 10:00 A.M. in Frankfurt (or 3:00 A.M. to 4:00 A.M.in New York).
Dedicated currency traders may have to adjust their sleeping schedules to take ad-vantage of increased activity and volatility when trading non-USD cross rate currencypairs.
Internet
The amount of information now on the Internet about currency trading is enormous—aGoogle search ﬁnds over 2.2 million entries for “Forex”; inclusion herein does not repre-sent an endorsement of any kind. We suggest beginning with one of the major portalssuch as www.goforex.net.
Online Brokers and Dealers
http://www.abwatley.com/forex/
http://www.ac-markets.com/
http://www.admisi.com
http://www.advancedﬁnancialworldwideinc.com
http://www.akmos.com/
Global Banking Hours
221
http://www.alphaonetrading.com
http://www.ancofutures.com
http://www.apexforex.com
http://www.alipes.net
http://www.arcadiavest.com
http://www.axistrader.com
http://www.cbfx.com
http://www.charterfx.com/
http://www.choicefx.com/
http://www.cmc-forex.com
http://www.cms-forex.com/
http://www.coesfx.com
http://www.csfb.com
http://www.currencyconnect.net/
http://www.currencytradingusa.com
http://www.currencyuk.co.uk/
http://www.currenex.com 
http://www.cytradefutures.com
http://www.dfgforex.com
http://www.directfx.com
http://www.dukascopy.com
http://www.eminilocal.com
http://www.enetspeculation.com/pub/en/defaut.asp
http://www.etradeprofessional.co.uk
http://www.ﬁbo-forex.it
http://www.ﬁnanza.saav.biz
http://www.FlashForex.com
http://www.forex.com/
http://www.forex.ukrsotsbank.com
http://www.forexcapital.com/
http://www.forex-arabia.com
http://www.forex-day-trading.com/
http://www.forexforyou.com
http://www.forex-mg.com/
http://www.forex-millenium.com
222
APPENDIX C
http://www.forexsolutions.com/
http://www.forextradingusa.com
http://www.forextradingdirect.com
http://www.forexsystembroker.com/
http://www.fxadvantage.com/
http://www.fxall.com 
http://www.fxcm.com/
http://www.fxdd.com
http://www.fxonline.co.jp
http://www.fxpremier.com/
http://www.fxsol.com/
http://www.fxtrader.net
http://www.fxtrading.com
http://www.gaincapital.com 
http://www.gcitrading.com
http://www.gfsbroker.com
http://www.gftforex.com/
http://www.ggmk.com
http://www.gnitouch.com/
http://www.goldbergforex.com
http://www.guardianfx.com/
http://www.hawaii4x.com/
http://www.hotspotfx.com 
http://www.ifxmarkets.com 
http://www.interactivebrokers.com
http://www.interbankfx.com
http://www.invest2forex.com
http://www.kshitij.com/
http://www.mvpglobalforex.com
http://www.oio.com
http://www.pfgbest.com
http://www.powerforex.com
http://www.proedgefx.com
http://www.propfx.com
http://www.rcgtrader.com
Global Banking Hours
223
http://www.realtimeforex.com
http://www.realtrade.lv
http://www.refcofx.com/
http://www.rjobrien.com 
http://www.saxobank.com/
http://www.socoﬁnance.com
http://www.sncinvestment.com
http://www.spencerfx.com
http://www.strategybroker.com
http://www.strikefx.com
http://www.superfutures.com
http://www.swissnetbroker.com
http://www.synthesisbank.com
http://www.titanﬁngroup.com
http://www.tradeamerican.com
http://www.tradestation.com 
http://www.x-trade.biz
http://www.zaner.com
Data
http://www.ozforex.tradesecuring.com/misc/ozchart.asp
http://www.csidata.com
http://www.forexcapital.com/database.htm
http://www.olsendata.com/
http://www.disktrading.is99.com/disktrading/
http://www.cqg.com/products/datafactory.cfm
http://www.datastream.com/
http://www.tenfore.com/
http://www.dukascopy.com
http://www.netdania.com
http://www.pctrader.com
http://www.csidata.com
http://www.ebs.com/products/market-data.asp
http://www.infotecnet.com/
http://www.comstock-interactivedata.com/index.shtml
APPENDIX C
224
Charts
http://www.fxtrek.com
http://www.esignal.com
http://www.forex-markets.com/
http://www.forexcharts.com/
http://www.moneytec.com
http://www.global-view.com/beta/
http://www.fxstreet.com/
http://www.forexdirectory.net/
http://www.forex-markets.com/
Portals, Link Pages, and Forums
http://www.forexmagazine.com
http://www.moneytec.com
http://www.goforex.com
http://www.forexsites.com/
http://www.investorsresource.info/
http://www.global-view.com/beta/
http://www.fxstreet.com/
http://www.forexdirectory.net/
http://www.forexvision.com/
http://www.currencypro.com
http://www.forexcentral.net/
http://www.forexpoint.com/
http://www.piptrader.com/
http://www.forex-registry.com/
Software Development
http://www.snapdragon.co.uk/
http://www.fxpraxis.com
Global Banking Hours
225
Performance Evaluation
http://www.parkerglobal.com/
http://www.marhedge.com/
http://www.barclaygrp.com/
Professional and Regulatory
http://www.aima.org/
http://www.cftc.gov/
http://www.nfa.futures.org/
http://www.mfainfo.org/
http://www.ﬁaﬁi.org/
Co-Author Archer’s Forex web site
http://www.fxpraxis.com
Resources
PERIODICALS
Active Trader (TechInfo, Inc.)—www.activetradermag.com
Futures (Futures Magazine, Inc.)—www.futuresmag.com
Currency Trader—www.currencytradermag.com
eForex—www.eforex.net
Euromoney—www.euromoney.com
Forex Magazine—www.forexmagazine.com
FX&MM—www.russellpublishing.com/FX&MM/index.html
FX Week—www.fxweek.com
GoForex—www.goforex.net
Technical Analysis of Stocks & Commodities—www.traders.com
Traders Journal—www.traders-journal.com
BOOKS
Aby, Carroll D., Jr. 1996. Point & Figure Charting. Greenville, SC: Traders Press.Archer,  Michael,  and  James  Bickford.  2004.  Getting  Started  in  Currency  Trading.
Hoboken, NJ: Wiley.
Bickford, James. 2002. Chart Plotting Techniques For Technical Analysts. Boulder, CO:
Syzygy.
Bigalow, Stephen. 2002. Proﬁtable Candlestick Trading. Hoboken, NJ: Wiley.Bulkowski, Thomas. 2005. Encyclopedia of Chart Patterns. Hoboken, NJ: Wiley.Dorsey, Thomas. 1995. Point & Figure Charting. Hoboken, NJ: Wiley.DraKoln, Noble. 2004. Forex for Small Speculators. Long Beach, CA: Enlightened Finan-
cial Press.
Henderson, Callum. 2002. Currency Strategy. Hoboken, NJ: Wiley.Horner, Raghee. 2005. Forex Trading for Maximum Proﬁt. Hoboken, NJ: Wiley.Klopfenstein, Gary. 1993. Trading Currency Cross Rates. Hoboken, NJ: Wiley.Lien, Kathy. 2004. Day Trading the Currency Market. Hoboken, NJ: Wiley.
227
228
RESOURCES
Luca, Cornelius. 2000. Technical Analysis Applications in the Global Currency Mar-
kets. Upper Saddle River, NJ: Prentice Hall.
———. 2000. Trading in the Global Currency Markets. Upper Saddle River, NJ: Pren-
tice Hall.
McGee, John. 2001. Technical Analysis of Stock Trends. New York: American Manage-
ment Association.
Murphy, John. 2000. Intermarket Financial Analysis. Hoboken, NJ: Wiley.———.  1999.  Technical  Analysis  of  the  Financial  Markets. Upper  Saddle  River,  NJ:
Prentice Hall.
Rosenstreich, Peter. 2004. Forex Revolution. Upper Saddle River, NJ: Prentice Hall.Ross, Joe. 2001. Trading by the Minute. Cedar Park, TX: Joe Ross.Schlossberg, Boris. 2006. Technical Analysis of the Currency Market. Hoboken, NJ:
Wiley.
Shamah, Shani. 2003. A Foreign Exchange Primer. Hoboken, NJ: Wiley.Zieg, Kermit. 1997. Point & Figure. Traders Press.
The  world’s  largest  supplier  for  mail-order  trading  books  is  Traders  Press
(http://www.traderspress.com).
INTERNET
The amount of information now on the Internet about currency trading is enormous—aGoogle search ﬁnds over 2.2 million entries for “Forex”; inclusion herein does not repre-sent an endorsement of any kind. We suggest beginning with one of the major portalssuch as www.goforex.net.
ONLINE BROKERS AND DEALERS
http://www.abwatley.com/forex/
http://www.ac-markets.com/
http://www.admisi.com
http://www.advancedﬁnancialworldwideinc.com
http://www.akmos.com/
http://www.alphaonetrading.com
http://www.ancofutures.com
http://www.apexforex.com
http://www.alipes.net
http://www.arcadiavest.com
Resources
229
http://www.axistrader.com
http://www.cbfx.com
http://www.charterfx.com/
http://www.choicefx.com/
http://www.cmc-forex.com
http://www.cms-forex.com/
http://www.coesfx.com
http://www.csfb.com
http://www.currencyconnect.net/
http://www.currencytradingusa.com
http://www.currencyuk.co.uk/
http://www.currenex.com 
http://www.cytradefutures.com
http://www.dfgforex.com
http://www.directfx.com
http://www.dukascopy.com
http://www.eminilocal.com
http://www.enetspeculation.com/pub/en/defaut.asp
http://www.etradeprofessional.co.uk
http://www.ﬁbo-forex.it
http://www.ﬁnanza.saav.biz
http://www.FlashForex.com
http://www.forex.com/
http://www.forex.ukrsotsbank.com
http://www.forexcapital.com/
http://www.forex-arabia.com
http://www.forex-day-trading.com/
http://www.forexforyou.com
http://www.forex-mg.com/
http://www.forex-millenium.com
http://www.forexsolutions.com/
http://www.forextradingusa.com
http://www.forextradingdirect.com
http://www.forexsystembroker.com/
http://www.fxadvantage.com/
230
RESOURCES
http://www.fxall.com 
http://www.fxcm.com/
http://www.fxdd.com
http://www.fxonline.co.jp
http://www.fxpremier.com/
http://www.fxsol.com/
http://www.fxtrader.net
http://www.fxtrading.com
http://www.gaincapital.com 
http://www.gcitrading.com
http://www.gfsbroker.com
http://www.gftforex.com/
http://www.ggmk.com
http://www.gnitouch.com/
http://www.goldbergforex.com
http://www.guardianfx.com/
http://www.hawaii4x.com/
http://www.hotspotfx.com 
http://www.ifxmarkets.com 
http://www.interactivebrokers.com
http://www.interbankfx.com
http://www.invest2forex.com
http://www.kshitij.com/
http://www.mvpglobalforex.com
http://www.oio.com
http://www.pfgbest.com
http://www.powerforex.com
http://www.proedgefx.com
http://www.propfx.com
http://www.rcgtrader.com
http://www.realtimeforex.com
http://www.realtrade.lv
http://www.refcofx.com/
http://www.rjobrien.com 
Resources
231
http://www.saxobank.com/
http://www.socoﬁnance.com
http://www.sncinvestment.com
http://www.spencerfx.com
http://www.strategybroker.com
http://www.strikefx.com
http://www.superfutures.com
http://www.swissnetbroker.com
http://www.synthesisbank.com
http://www.titanﬁngroup.com
http://www.tradeamerican.com
http://www.tradestation.com 
http://www.x-trade.biz
http://www.zaner.com
DATA
http://www.ozforex.tradesecuring.com/misc/ozchart.asp
http://www.csidata.com
http://www.forexcapital.com/database.htm
http://www.olsendata.com/
http://www.disktrading.is99.com/disktrading/
http://www.cqg.com/products/datafactory.cfm
http://www.datastream.com/
http://www.tenfore.com/
http://www.dukascopy.com
http://www.netdania.com
http://www.pctrader.com
http://www.csidata.com
http://www.ebs.com/products/market-data.asp
http://www.infotecnet.com/
http://www.comstock-interactivedata.com/index.shtml
RESOURCES
232
CHARTS
http://www.fxtrek.com
http://www.esignal.com
http://www.forex-markets.com/
http://www.forexcharts.com/
http://www.moneytec.com
http://www.global-view.com/beta/
http://www.fxstreet.com/
http://www.forexdirectory.net/
http://www.forex-markets.com/
PORTALS, LINK PAGES, AND FORUMS
http://www.forexmagazine.com
http://www.moneytec.com
http://www.goforex.com
http://www.forexsites.com/
http://www.investorsresource.info/
http://www.global-view.com/beta/
http://www.fxstreet.com/
http://www.forexdirectory.net/
http://www.forexvision.com/
http://www.currencypro.com
http://www.forexcentral.net/
http://www.forexpoint.com/
http://www.piptrader.com/
http://www.forex-registry.com/
SOFTWARE DEVELOPMENT
http://www.snapdragon.co.uk/
http://www.fxpraxis.com
Resources
233
PERFORMANCE EVALUATION
http://www.parkerglobal.com/
http://www.marhedge.com/
http://www.barclaygrp.com/
PROFESSIONAL AND REGULATORY
http://www.aima.org/
http://www.cftc.gov/
http://www.nfa.futures.org/
http://www.mfainfo.org/
http://www.ﬁaﬁi.org/
CO-AUTHOR ARCHER’S FOREX WEB SITE
http://www.fxpraxis.com
Index
Absolute dispersion, 11Absolute momentum, 10Absolute range, 8, 9Activity, concept of, 7–8Activity Oscillator, 5Activity vs. volume and open interest, 
180
exchange rates 1948–2004, 55gold standard, 54historical perspective, 53–54monthly charts, 67, 68–70, 
71
reason for trading, 53weekly composite charts, 80–81
ADX. See Average Directional Index
Brokers and dealers, online, 
(ADX)Annual charts:
British Pound, 59, 60–66Euro currency, 25, 26–32Japanese Yen, 124–130Swiss Franc, 91, 92–98
Arbitrage, 206Archer’s Forex web site, 225Average Directional Index (ADX), 8
Banknotes:
British Pound, 56Euro, 17, 18–19, 20, 21Japanese Yen, 118, 120, 121Series E, 56Swiss Franc, 87, 88f
Base currency, 3Bid-ask spread, increasing, 49Bona ﬁde currency, 18British gold dealers, 183British Pound: 
annual charts, 59, 60–66banknotes and coins, 56, 57daily composite charts, 73, 74–81
220–223
Buy orders, 49
CHF currency activity, 170CHFJPY: 
composite activity chart, 168cross rate activity, 169
CHFJPY OHLC and activity chart: 
Jan.–Apr. 2006, 1622000–2005, 156
Chicago Mercantile Exchange (CME),
149
cross rate futures, 150
Clearing houses, 175CME. See Chicago Mercantile Exchange
(CME)
Coefﬁcient of correlation, 11Coefﬁcient of variation, 11, 190, 196Coins: 
British pound, 57commemorative, 88Euro, 17, 18–19, 22Japanese Yen, 120, 121Swiss Franc, 88, 89, 90
235
236
INDEX
COMEX. See New York Metals Market
(COMEX)
Commemorative coins, 88Composite charts. See also Annualcharts; Daily composite charts;Monthly charts; Weekly charts
as analytic tool, 11–12CHFJPY, 168daily range (Wednesdays), 12EURCHF, 164EURGBP, 163EURJPY, 165GBPCHF, 166GBPJPY, 167weekly activity, 13
Cross rates: 
activity summary, 169charts, 149deﬁnition of, 3
Daily OHLC and activity charts, 157Data:
Forex, 4interval, 5web sites, 224
Day of Week Chart, 11Direction: 
deﬁnition of, 8formula, 8
Directional Indicator, Negative, 8Direction Oscillator, 5Disk Trading Ltd., 4Dispersion, absolute and relative, 
11
Dodge Line Policy, 118Downticks, 5
Economic Stabilization Board, in Japan,
118
Currency(ies). See also Euro (EUR)
ECU. See European Currency Unit 
currency
(ECU)
base, 3bona ﬁde, 18correlation with gold, 190cross rate futures, 149exchange rates, 217–218minor, 3, 4Mundo, 199–200, 201–207pairs, 3sorted by activity percentage, 170sorted by percentage 2000–2003, 170spot, 7trading, 196, 220USD major activity, 169world, 212–215
Daily composite charts:British Pound, 40–45calculation of, 39Euro currency, 73, 74–79Japanese Yen, 138–144range (Wednesdays), 12Swiss Franc, 105, 106–113
EMU. See European Economic andMonetary Union (EMU)
EURCHF: 
composite activity chart, 
164
cross rate activity, 169
EURCHF OHLC and activity chart: 
Jan.–Apr. 2006, 1582000–2005, 152
EUR currency activity, 170EURGBP:
composite activity chart, 163cross rate activity, 169
EURGBP OHLC and activity chart: 
Jan.–Apr. 2006, 1572000–2005, 151
EURJPY: 
composite activity chart, 165cross rate activity, 169
EURJPY OHLC and activity chart: 
Jan.–Apr. 2006, 1592000–2005, 153
Index
237
Euro dollar, Euro currency vs., 23Euro (EUR) currency: 
annual charts, 25, 26–32banknotes and coins, 17, 18–19daily composite charts, 39, 40–46,
48–49
vs. Euro dollar, 23historical perspective, 17–18monthly charts, 33, 34–36, 37reason for trading in, 17web site, 18weekly composite charts, 46–49European Currency Unit (ECU), 18European Economic and Monetary Union
(EMU), 17, 18
EURUSD: 
currency activity, 169vs. ECM4, 180pip differential oscillator, 
178
EURUSD OHLC and activity chart:
Jan.–Mar. 2006, 34–362000–2005, 26–32
Exchange rates, 3, 217–218
GBPJPY: 
composite activity chart, 
167
cross rate activity, 169
GBPJPY OHLC and activity chart: 
Jan.–Apr. 2006, 1612000–2005, 155
GBPUSD:
vs. BPM4, 181currency activity, 1691948–2004, 55, 55pip differential oscillator, 179
GBPUSD OHLC activity chart:
Jan.–Mar. 2006, 68–702000–2005, 60–66
Global banking hours, 219–220Gold: 
currency correlation with, 190spot prices, 183–184statistics, 190U.S. and British dealers, 183Gold standard, British Pound, 54Group of Eight (G8), 170
Forex Chartist Companion, The, 7, 
High relative range, 9Hunt Brothers, 196
11Forex data, 4Forex market, 175Forex trade, 3Forums web sites, 224Futures: 
contract, 175volume and open interest, 176, 177
G8. See Group of Eight (G8)GBPCHF: 
composite activity chart, 166cross rate activity, 169
IMM. See International Monetary Market
(IMM)
International Monetary Market (IMM),
175
currency futures, 199
International Standards Organization
(ISO), 18
currencies pairs, 211, 212–215designation for gold, 183designation for silver, 191symbol for Swiss Franc, 85Internet, currency trading and, 
GBPCHF OHLC and activity chart: 
220
Jan.–Apr. 2006, 1602000–2005, 154
GBP currency activity, 170
Interval data, 5ISO. See International Standards
Organization (ISO)
238
INDEX
Japanese Yen: 
annual charts, 123, 124–130banknotes and coins, 120, 121currency activity, 170daily composite charts, 137, 
138–143
historical perspective, 117–119monthly charts, 131, 132–135, 
136
Pairs trading, 9Performance evaluation web sites, 
225
Pip: 
deﬁnition of, 3pip-tick relationship, 4standard deviation and, 11
Pip differential oscillator, 177, 178–179,
180
reason for trading, 117web site on, 1