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.
The All-Star RSI indicator is probably one of the indicators you heard about on your quest for more knowledge about Forex Trading and trading in general. Prepare for shock and awe. The RSI indicator is the fraternal twin sister of the stochastic indicator which means, most people have also been using this indicator the wrong way!
Trading is about edge which, is basically your Win rate against your average RR. Using Multiple Time-Frames (TFs) can help your trading improve significantly by increasing your win rate. Your decisions are much clearer when they are based on the “Bigger picture”. The “Bigger Picture” is only clear when you can see the WHOLE picture of a single instrument. This is what Multiple Time-Frames can help you do. Now that you know why you should use Multiple Time-Frames, let’s break down how…
For the longest time, I never understood what market structure referred to and how exactly you would trade that as a trader, with or without experience.
Market structure is simply support and resistance on your charts including swing highs and lows. These are levels on your chart attracts the most attention.