Forex encyclopedia

In summer 1944 WW II started to evolve into closing stage and allied countries began seriousely deliberating financial shape of postwar world. All leading economies except for the USA were worn out and on the decline. Up to the end of the war, the most part of golden reserves was accumulated in the USA whereas winning and lost countries both were badly in need of oil, row materials, food and equipment. To prevent further global conflict for resources, Bretton Woods agreement was concluded, which was named after the New Hampshire town where the agreement was reached. According to this agreement, International Bank for Reconstruction and Development (IBRD) and International Monetary Fund (IMF) were established. Participants countries contributed money funds (the largest contribution was from the USA) and every country could lend from those funds to support its currency. For the currency leading by that moment – US dollar – so called Golden Standard was created and was equal to $35 for golden ounce.
You've probably once thought: "Why are prices moving in graphics?" There is a currency vendor, and there is the buyer of the same currency, they make a bargain and everybody is happy. Who then needs to grow or fall in price then? After all, when you buy a bread at the store, such an action does not allow the price of bread to change. Maybe it's a global financial conspiracy or brokers hiding something from us? Undoubtedly, you've also heard an old, good tune-up: Trend is your friend. Have you ever wondered why Forex strategies based on trend tracking work and why trend-based marketing is so universally recognized and popular? The reason is simple. The trend is likely to continue and go on. Once the movement has begun, it is easier for it to continue the movement in the direction than to stop, let alone reverse. This is one of the axioms in the treasure. We give this expression a variety of definitions, trend, momentum or tendency. However, what is the real reason for this? What's really going on in the market and what makes the price move after the trend?
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