The ADR (Average Daily Range) is sometimes called the ATR (Average True Range) depending on your platform but don’t worry THEY ARE THE SAME.
The ADR is an indicator that does a simple calculation of the average movement of price within a day over a number of days (or periods).
We have 3 types of movements that create cycles in a market, either within a year, a month, a week, a day, or any other timeframe. Cycles are everywhere.
We have the bullish, bearish, and ranging movements. The interesting thing about these movements is if you are not able to spot what market environment we are in, you are probably the joker at the poker table, ready to lose all your money.
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 a securities value.
Making decisions based on price action means that your actions are determined by market movements on a chart. In Forex trading, this means focusing on the fluctuation of the exchange rate between two currencies.
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?