There are many different strategies that traders pick from. As a beginner, it is common for a trader to run through all types of trading until he or she finds the style most suited for them. This kind of searching may take a couple of weeks, months, or years dependent on the person.
It’s not what you think.
This particular topic is a bit taboo in Forex trading for some and a real reality for others. But how can that be? If you’re new to Forex then allow me to disabuse you of the notion that everyone experiences the market the same way.
This is a question that may plague a lot of traders. Some of you might have heard things like “trade all of them” or “trade one until you master it”. These opinions can come from leaders in the trading industry thus leaving some newbies or even intermediate traders in the grey about which route to take. Which answer is the right one? Both…
Price action refers to the price changes of a security, which is represented on a chart. All forms of technical analysis are based on price action since these methods are used to analyze the changes in price.
Making decisions based on price action means that your actions are based on the movement of price on a chart.
Growing up as a Forex baby you may have thought to yourself that your analysis is a big part of whether you make money trading Forex but that is not entirely true, unfortunately for some, your actual trading is responsible for a green P&L at the end of the month.
Candlesticks were first used in Japan by rice traders, the use of candlesticks charts then became popular in other markets, including Forex trading. Today, Japanese candlesticks are one of the mainstays of technical analysis in markets, why is their use so popular?
Trendlines are a form of dynamic support and resistance which means trendline breaks signal a potential shift supply and demand, just as breakouts of horizontal levels do. Traders can take advantage of these occurrences and position themselves on the correct side of the market.
Before we rush, what is a trendline breakout? This occurs when price closes past a trendline that previously acted as support or resistance.
Retracements are temporary moves against the overall trend direction and eventually result in a trend resumption i.e. retracements can be considered as temporary trend reversals.
In Forex trading, a retracement occurs when the weaker currency overall, has a burst of strength that ends when the overall stronger currency overpowers it again (and the trend resumes). Below is an example of retracements within a prevailing trend.
In this article, we will discuss a few key pointers that every Forex trader needs to know about his or her currency pairs. So let me start by asking you a few questions… How well do you know your pairs; EURUSD, GBPUSD, USDJPY?
Seriously how well?! Do you know what happened 2 weeks ago with cable? Or why the Euro gained so much strength over the past week? Or what price your favorite pairs are sitting at right now?
Have you ever read through a trading article that uses the terms long and short, confused because it doesn’t refer to the length of the trade? No issues, this post will discuss long and short positions and how they apply to Forex trading.
A long position is another name for a buy position, when going long (buying) you expect prices to increase. A short position is another name for a sell position, when going short (selling) you expect prices to fall.