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.
Like always, I want to debunk any myths you might believe about profitable Forex trading. I will start by saying No! A holy grail does not exist the way most people think. There is no strategy that doesn’t take a loss or have a losing streak every now and then. There is, however, a strategy that you have to FIND (If you haven’t bought a course and you don’t have a mentor) that makes money in the markets.
I feel like the word “Diversify” may be over-rated. In some circles, they trade commodities. In other circles, they trade cryptos, and in my circle, we trade Forex. Which should you trade? Should trade you trade all of them? I don’t recommend it. It’s never as simple as ABC or 123 when it comes to trading.
Our goal as Forex traders is to be consistently profitable. But we need a consistent process to achieve success year after year.
A framework allows us to study the results of our actions. Therefore we can make success repeatable by simply following the same process.
Head and shoulders (H&S) refers to a popular technical analysis pattern used to trade market reversals.
A classic head and shoulders indicates the probable end of an uptrend proceeded by a downtrend. Inverse head and shoulders also occur in markets, and these suggest that a downtrend should come to an end followed by an uptrend.
Forex Trading? Stock trading? Indices? What’s the difference?
Do they make you money or not? That is the question you should be asking. Whether you’re a Forex trader, a stock trader, or a dedicated indices trader, you need to have a green bottom line.
Market trends are formed by a series of with-trend and countertrend price moves. Understanding the terminology used when describing price action is vital for anybody starting in the Forex market.
Pip is an acronym for “price interest point” or “percentage in point”, which is a price change of 1/100 of 1% or one basis point. This represents the smallest possible change in an exchange rate.
The majority of Forex pairs are quoted up to 4 decimal places i.e. a pip is the last of those 4 decimal places.