Breakout trading means buying an asset after it has moved above a certain price level (and vice versa for selling). The breakouts can emerge on any time frames. The 5-minute and 15-minute charts are popular among day traders practicing brea...
Hedging is the parctice of protecting client's funds from unfavorable price fluctuations by opening a position in a contrary or opposing market. Hedging: ensures protection from possible losses by the time of forward deal settlement; provid...
Locking is a type of a hedging strategy aimed at minimizing risks associated with changes in markets behaviour. The difference between hedging and locking is that hedging is used for different trading instruments, while locking is used for...
There is no single opinion about the scalping trading strategy. However, more and more traders are getting interested in this method. Why does scalping look so appealing? Probably because it is one of the few ways to make a quick profit on...
The Elliott Wave Theory was once quite popular and remains widely-used to this day. However, every popular theory undergoes various modifications and additions. A good example of this is a complex mixture of the Chaos Theory and the Wave th...
Automated trading is the final step on the path of becoming a trader. If a trader is able not only to create his own trading strategy, but also to code it properly and make it workable, then his/her financial independence is guaranteed.What...
The charts of any currency price movement with any units of time measurement form periodical and identical patterns of different type. Some of these figures are always formed on the charts before the trend ends, when the operation volume in...
The Fibonacci numbers is a theory, named after an outstanding Italian mathematician of the XII-XIII centuries, which affords to use numerical coefficients (Fibonacci numbers), which, in their turn, play an important role in forecasting the...
The average daily trading strategy consists of certain steps, including analysis, setting certain targets, placing orders, and executing a deal. The main idea of such a strategy is that the trade depends on the analysis that you have carrie...
When you develop a long-term trading strategy for EUR/JPY, it will be useful to look at the trading history of this currency pair in the past few years.So, if you look at the weekly chart of the EUR/JPY, you will notice continuous growth fr...
The next technical analysis indicator which should be paid attention to in the process of Forex education is the Parabolic Stop and Reversal System (PSAR). This indicator was developed by the famous trader Welles Wilder, who contributed muc...
We will consider a number of patterns which comprise of two or more Japanese candlesticks. It should be noted, that they are of limited use on Forex as they presuppose that the closing price of the prior trading period and the opening price...
The price is not the only weighty factor to be considered while analyzing Forex market. Besides the currency exchange rate, its trading volume plays an important role, too.There is the postulate of the Dow Theory that tells that the trend m...
The primary task of technical analysis of financial markets in general and the Forex market in particular is finding a trend on a plotted chart. The Dow theory discerns three types of trends: long-term, medium-terms and short-term trends. T...
The plain form of the [[Moving Averages|moving average (MA)]] is a simple moving average, SMA. This type of technical analysis indicators is depicted as a curve on the price chart, the main task of which is to even (or filter) price changes...
Another type of [[Moving Averages|moving average]] is the Exponential Moving Average (EMA). It can be considered as weighted MA which weights are decreasing exponentially with the remoteness of the trading period taken for calculation start...
Moving average convergence divergence (MACD) is a technical indicator that follows the trend of a dynamic indicator. It shows the relationship between two moving averages of an asset price.The MACD technical indicator is calculated by subtr...
The “secret” of this trading strategy is that the shorter the duration of your trade, the less money you will make.Think about any investment you have ever made. Did you make a killing in one day?And even if you are so lucky, how many times...
The trend exists as long as prices maintain the tendency to rise and to fall through time. When the trend is uprising, every following support and resistance level exceeds the preceding. During the downtrend every following level of low and...
A straight line, connecting two neighboring lows, shows the minimal strength denominator of bulls; and the line, connecting two neighbouring tops, shows the lowest strength denominator of bears. These lines are called trend lines. Trend lin...
As time goes by, the speed of price movement within a trend can change. It can increase which corresponds to the bigger angle of the [[Trend Lines|trend line]], or decrease and make the [[Trend Lines|trend line]] not that steep. In these ca...
Point and Figure charts differ from the bar charts in two significant ways. At first, bar charts are constructed on time intervals regardless of whether there is any change in price. A new plot on a Point and Figure chart is made only if th...
To use non-standard indicators on the MT4 trading platform, select Open Data Folder command in the File menu. Then you need to choose the MQL4 folder and copy indicator files to the Indicators folder. In case the custom indicator is importe...
Index, or a stock index, is a composite indicator of prices of assets belonging to a particular group (securities, commodities, derivatives), a so-called stock basket.As a rule, the readings of indices are not as important as the index chan...
Until the 1970s, the exchange rate of a particular currency was determined by the country's gold reserves. That was due to the fact that global markets were regulated by the gold standard. Each currency had its equivalent in a troy ounce. H...
It is vital to understand what part a private investor plays in the global currency exchange market before starting trading forex. Giving an insight into the types of forex participants, as well as their influence on the market, will help y...
When we buy something in a shop, a price tag shows us the price of an item in the domestic currency. For example, we pay $12 for a book which is common practice for us.In the Forex market, we always trade one currency against another. There...
Until now, talking about quotes, we have intentionally used only spot (current) Forex exchange rates to make our website easier to understand. However, a Forex quote consists of two rates (prices) - the sell rate (bid) and the buy rate (ask...
The trading operations on Forex are carried out not only against the US dollar. We intentionally have not touched on these operations until now to make the content more intelligible. The currency rates, which do not include the US dollar, a...
Forex trading is aimed at making money on currency speculations. We have been describing the currency market above but avoided such topics as what starting capital is needed to work on Forex and what profit can be expected. In this chapter...
We have already clarified that margin trading supposes the usage of the loan capital, when a trader borrows assets from his broker to carry out operations on Forex. For better understanding of this chapter, let us study the principle of cas...
We have thoroughly considered the basic terms used on Forex and the main principles of margin trading. It is the time to study how to calculate profit and loss of the opened trades. We know that a trader enters the international currency ma...
There are many articles on the internet in which trading on Forex is compared to gambling in casinos, and in particular, to roulette. The authors of these articles bring out different proofs, citing mathematical extracts from the theory of...
Even though this section is devoted to forex education, we will also touch on the stock exchanges and stock indices. At first glance, it seems that the chapter is not related to Forex, but, in fact, it is. Currency rates are interrelated wi...
As we have already found out from previous chapters, the currency price is determined by a great variety of factors, such as: economic, political and some others. All listed factors concerning each country separately influence its national...
If you top up your trading account with a credit card, you must verify it by uploading copies of the front and back sides of the credit card in the Verification > > Verify card section of the client area.The requirements for a bank card ver...
The client terminal can be installed and run on computers with Mac OS using Wine. Wine is free software that allows users of the Unix-based systems to run an application developed for the Microsoft Windows systems. Among all the Wine versio...
If you want to verify a bank card with no name on it, you need to upload a document showing the information about this card such as the number, the validity period, and the card owner’s name. Importantly, you need to hide a part of the card...
Dividends are payments made by a company to its shareholders as a portion of its profits. Not all companies choose to distribute dividends, especially in the early stages of their development. Whether or not you can receive dividends on IPO...
There are the following risks:- Market volatility: IPO shares can be subject to significant price fluctuations in the early stages of trading. The market demand and sentiment surrounding the company's stock can lead to high volatility, resu...
