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Momentum oscillator charts are useful investing tools that track the velocity of price movement. The Relative Strength Index (RSI), created by Welles Wilder, helps traders identify markets that are either oversold or overbought. When evaluating a currency with the RSI, the recent gains are measured against recent losses. It is then assigned a [...]
Successful Forex training depends on knowing how the market works: a thorough market education is essential in determining market trends, and this in turn, is vital in maximizing profits. Charts and indicators can be very helpful for those who know how to use them. Among them is Welles Wilder’s Parabolic SAR (Stop and [...]
Forex trading is complicated, but there are strategies that can help you make sense of it. A very simple, yet effective, technique uses trend lines. With these, you can better time your trades.
Trend lines are very basic and easy to use. They simply follow ups and downs in the market, which [...]
Bollinger bands were created to determine patterns in more volatile markets. They are used to help the investor anticipate new trends or movements in the market. Bollinger bands, which are comprised of three lines, can be used with foreign currency trading, as well as in the stock market.
The central line on [...]
The ability to spot forex trends early is what separates modest profits from substantial gains in Forex trading. When investors can determine where the market is heading, they can maximize their gains. Following and anticipating trends is an important strategy for Forex traders.
Do you need to know everything about the Forex market and [...]
It seems even the experts can misjudge the market and make, what is in hindsight, poor choices. The strategy of using scalping expert advisor software had been a popular trading technique, but many now are questioning its efficacy. Should you scalp forex using a scalping expert advisor? What are the pros and [...]
Thorough – and effective – Forex MACD technical analysis depends upon making use of a wide variety of indicators. No one strategy will predict Forex market swings all the time, but several are available that can help investors time trades. One very useful, if underused, tool is the Forex MACD indicator.
One [...]
At first glance, stochastics seem like a complicated forex indicator. But when broken down, they offer a solid tool for Forex investors. The market fluctuates during any given period, and you can measure the velocity or momentum of a trend with this forex indicator.
Stochastics works on the premise that while prices are rising, [...]
Fundamental and technical analysis are the two major approaches to forex market analysis.
1. Fundamental analysis concerns itself with identifying socio-political and economic forces, and analyzing their impact on the market.
2. Technical forex market analysis, on the other hand, employs graphs and charts to infer patterns in an attempt to predict price movement.
Choosing one over the [...]
What is a Forex Trading System? Even better, what is the best forex trading system? At the end of this article you will find links to help you find a top notch forex trading system course. There you will learn about specific, proven strategies in detail.
A forex day trading system can be thought [...]
Predicting the movement of prices through forex trading analysis is key to successful trades. This applies equally to commodities, stocks, bonds, and currency.
Technical analysis along with forex fundamental analysis are the basic two forms of foreign exchange analysis.
The study of prices is the realm of technical analysis. Analyzing past price behavior and using it to [...]
Studying price movement is the realm of forex technical analysis. The history of price movements are tracked via price charts and these are used to predict future market direction.
Most Forex brokers online will have numerous forex technical trading analysis tools available for their clients. Below are some of the more popular ones.
Forex Bollinger Bands
Forex Bollinger [...]
A forex trading margin account can benefit you greatly if you know how to manage it. For just a small amount down, large currency positions can be purchased on margin.
The is referred to as Forex leverage, and allows you to increase your gains by a large factor. Of course this also applies to potential losses, [...]
To forex traders, everything revolves around forex pips.
“I’m up 52 pips today.”
“I earned a 228 pip profit on my last trade.”
That’s great, but what’s a forex pip?
Pip is short for “percentage in point” and you may sometimes hear people refer to forex pips as points.
Put simply, forex trading pips are the smallest unit [...]
Understanding the math involved in computing forex profit and loss is essential even if your trading platform computes this automatically. Aside from letting your broker know he can’t put one over on you, understanding your forex profits just makes good sense considering the amount of money generally involved in a forex trade.
Forex trading profit is [...]
Traders often use forex trading signals to assist them in determining when to enter or exit the market.
Forex Robot and Forex signals software can provide this type of information. Aside from generating signals, Forex robots interfaced with your brokers trading platform can even trade on your behalf with no intervention from you. Using forex signal [...]
For those attempting to read Forex quotes for the first time, it can look intimidating. Looks are deceiving, hoewever, as they are not that hard to understand.
Here’s a typical example of a Forex quote:
EUR/USD = 1.2526
Pretty elementary. From here you can see that the exchange rate between the Euro and the US Dollar is 1.2526
Remembering [...]
Do trading forex and Japanese candlesticks have something in common? Actually they do.
Seven centuries past in Japan, multitudes of rice traders utilized candle charts to keep track of rice prices.
They are very popular due to the fact that people generally have an easier time reading candle forex charts compared to the run of the mill [...]
Leonardo Fibonacci is not particularly well-known in today’s modern world.
But he certainly was well known circa 1175-1250 and beyond, since that is when he was living as a Mathematician in Italy. He introduced the decimal system to Europe among other very significant contributions to mathematics.
One popular contribution bears his name, the Fibonacci Sequence or Fibonacci [...]
There are two main schools of thought when it comes to forex analysis. Fundamental analysis studies the overall picture of a nation’s economy. This so called big picture view has practitioners who insist that the overall state of the economy as indicated by the different economic indicators is the key to forecasting price movements.
On the [...]
