Technical analysis means studying historical price movements on a visual chart and using this information to make trading decisions.
Traders who implement this approach are called technical analysts or technicians.
Let’s talk about wicks in Forex trading, many things are believed about where to draw trendlines and support or resistance lines. Usually, the question is, “Do I draw the trendline along the wicks of the swing points or just along the bodies of the candles and ignore the wicks?” You will get different answers from different traders about what to do, and that is it can be so difficult for beginners to know what is right and what is wrong. In this article, we will break down the answer for you.
Forex charts will be your view of the marketplace. Your view will directly affect your perspective of the Forex marketplace. So before you go onto trading the forex market, you must decide how you want to see the forex market. Many people have already heard of Japanese candlesticks, but few beginners know there are two other main ways to look at price action in the Forex market.
A timeframe in trading means a period in which trading takes place, which is then represented on a price chart.
Even though the instrument stays the same, each timeframe has a different look and gives a different perspective on the market.
As Forex traders with the leverage we get from Forex brokers we are able to double, triple and even quadruple our trading accounts in a matter of days, this is of course with high risk positions and scalping, but under normal circumstances the outcome is still possible over a longer period of time if the trader is disciplined in following their trading plan and keeping their emotions and psychology balanced.
Spread is present in Forex Trading just like it is in the business world.
When business owners sell a product to someone, they don’t do it at cost. They add a markup/margin AKA Spread so that they can make a profit off of the transaction.
This cost is what allows most brokers to make a profit and stay in business.
A channel is a chart pattern consisting of two parallel trendlines connecting swing highs and swing lows. This pattern presents great trading opportunities since the trendlines act as support and resistance levels.
Channels are also an excellent tool to analyze trend continuation or reversals since prices stay within the channel until a breakout occurs.
The age-old debate. New Forex traders might come across this debate and be curious about the difference between these two approaches. Should they use Forex indicators? Or just trade using Price action? This is what that article is going to answer for you.
There are 4 Forex Sessions in total, but there are only 3 Important Forex sessions that every trader needs to know.
Asian, London, and New York Forex sessions. The Australian and Tokyo session are combined because they closely overlap each other, so they are usually combined into what is called the ASIAN session.
A trend resumption occurs when a market correction comes to an end and price continues in the prevailing trend direction.
In an uptrend, this would mean the market retraces before moving to a new high. In a downtrend, this means price corrects before moving to a new low.