This is very much a beginner topic, but I think it is essential to learn about the market open and close because trading mistakes made during these times can be avoided, as long as you are aware of them.
To start, I want to point out that the Forex market is not the same as the stock market in terms of when the market closes and opens.
Today we will look into the rising wedge pattern which occurs in the markets when price contracts in a specific direction. On a chart, you will observe a trendline underneath price and channel line above.
Within the wedge, the market still has bullish momentum, but breakouts out of this pattern can occur in either direction.
There are two ways most traders achieve a positive expectancy (get the probabilities in their favor). These can be used separately or together to gain an edge but the logic is simple – You either FOLLOW THE TREND or trade using CONFLUENCE.
Volume refers to the amount that a financial instrument has been traded over a specified period. In the Forex market, this would be how much a certain currency pair has been exchanged. For example, traders will analyze the volume of EURUSD over a 4-hour timeframe.
As a trader, there aren’t going to be too many things you have in common with other traders because everyone is different right? Trading is one of the few things in this world that rewards using the ideologies of others.
It is of the utmost importance that you know how to mark up zones in the Forex market. When you can mark these zones correctly, you are able to see why price reacts a certain way around a zone, whether that be support or resistance.
Newbie trader, this one is for you and maybe a couple of traders who still aren’t too sure of their trading skills or whether or not their strategy still works!
Here is one thing we should always remember about the Forex markets – the Forex markets are a game of probabilities and as much as we want to win every single trade, unfortunately, it is merely impossible. IMPOSSIBLE!
Reversals refer to a change of direction in a market. If the market is in an uptrend then a reversal would lead to a price decline, if the market is in a downtrend then a reversal will lead to a price increase.
In all markets, prices are governed by the laws of supply and demand. As Forex traders we must understand these forces and how they relate to our analysis of the market.
Supply represents selling within a market and demand represents buying, thus supply and demand are all about the interaction between buyers and sellers.
Profitable trading strategies are usually extremely simple. Fibonacci is one of the easiest forms of technical analysis to grasp which is why today I will show you a Fibonacci Forex strategy.
What is the basis of Fibonacci trading? These levels are calculated relative to the size of the previous move i.e. the value from one swing point to another.