Forex

Federal regulators have filed suit against 14 small firms that officials say are breaking the law by selling foreign-currency contracts to individuals without being registered with a government agency. The lawsuits announced Wednesday were the first show of force by the Commodity Futures Trading Commission under new regulations that took effect in October under the financial overhaul law. The lawsuits seek to force the firms to register with the CFTC before they can continue to operate. They also seek civil fines and restitution. When an investor buys a foreign-currency contract, he buys the right to purchase an amount of foreign currency at a fixed price in dollars. Investors hope to profit from ups and downs in currency markets, but they can also suffer losses from sharp price swings. The CFTC urged the public Wednesday to check whether a firm is registered before investing money. If the firm isn't registered, people should be wary of investing with it, the a

The Relative Strength Index (RSI) is one of the most popular Technical Indicators in oscillator charting methods. RSI is normally used to compare the currency strength and to predict currency price movements. Developed J. Welles Wilder, the Relative Strength Index ( RSI ) is a momentum oscillator that measures the speed and change of price movements. RSI oscillates between zero and 100. Traditionally, and according to Wilder, RSI is considered overbought when above 70 and oversold when below 30. Signals can also be generated by looking for divergences, failure swings and centerline crossovers. RSI can also be used to identify the general trend. RSI is an extremely popular momentum indicator that has been featured in a number of articles, interviews and books over the years. In particular, Constance Brown's book, Technical Analysis for the Trading Professional, features the concept of bull market and bear market ranges for RSI . Andrew Cardwell, Brown's RSI mentor, int