Bulls and bears are two of the most used words in all trading, including Forex. Without an understanding of these terms, a new trader can be left asking what animals have to do with financial markets? The purpose of this article is to explain what these terms mean and show how they are used in Forex trading.
Growing up, I played a game where you had to swim to the bottom of the pool and collect as many coins as you could. Whoever had the most coins, (had the most money) won. The easiest way to win was to go where most of the coins were or at least where you saw the most coins piled up.
Not what you think.
The stochastic indicator is very popular and a lot of beginners are drawn to it for its clear “Over-bought” and “Over-sold” signals, but a lot of them don’t know what it actually indicates.
The stochastic indicator ladies and gentlemen…
Think of trading in probabilities! This is one of the most used statements in trading education because it is the best approach. But what does “think of trading in probabilities” mean? By the end of this article, you will have an understanding of how probabilities apply to the market and why focusing on the odds in trading will make you a more profitable trader.
Trendlines form part of the core set of tools used by Forex traders who implement technical analysis. If you want to understand this concept better, then fate has lead you to the right place.
Trendline- A line drawn on a price chart that connects swing highs or swing lows. Trendlines act as support and resistance just as normal horizontal levels do.
I’ve specifically titled this article… what it is, because there isn’t just one MACD indicator or at least one way to use it. Most of the pictures of the MACD you’ll probably see have a zero-line (Explained further down), histograms and two moving averages and are not what I’m about to show you. Let me Explain.
It is impossible to talk about technical analysis in financial markets without the topics of support and resistance coming up. It is the equivalent of trying to explain soccer without mentioning passing. Using support and resistance in trading is arguably the most widespread factor used in the strategies and approaches of traders.