Posts Tagged ‘Forex trading’

You need to be aware of news events and economic releases ahead of time. You will be caught by surprise if you are a day trader or a scalper when the market makes sudden impulsive movements to cause huge losses. In this video, you will learn about how to use the forex factory economic calendar. You need to start with setting your timezone. You need to use high impact and low […]

Copy trading has become very popular among forex traders. If you do not have enough time to invest in analyzing the markets and use a strategy to trade the markets, then you should consider copy trading. With copy trading, you take the trades, which is a copy of trades from another trader. You basically use the trading signals from another trader. There are a number of signal providers […]

Choosing a trading style is based on your preferences and lifestyle requirements. Trading style usually resonates within the personality of a trader. You need to be honest with your personal traits and choose a trading style that reflects your nature. Using a trading style that does not reflect your personality can lead to deviations from the trading plan. Here are some of the trading styles that you should know […]

As you can see on the chart, you have the ADX indicator added to the 1-min chart. You have the ADX line, which is green in color. It gives you the readings on trend strength. Above the 20 level is considered as a strong trend. The higher the readings, the stronger the trend. You also have the +DI and the -DI line. You can use the crossover of these lines to generate trading signals. When the +DI line crosses […]

The RSI indicator is a momentum oscillator and it helps you to measure the speed and the change of price movements. It is plotted in a scale from 0 to 100. Above the level 80 is considered overbought condition. Below 20 is considered oversold. As you can see from this example, you have the RSI indicator added below the price chart. After the readings reach the value of 80, the market slows down, and then […]

As you can see on the chart, you have the 14-period ATR indicator added below the price chart. This indicator helps you identify periods of high volatility and low volatility. The price action is ranging during periods of low volatility. The body and the wicks of the candlesticks are small. As you can see on the chart, during the periods of low volatility, the ATR is pointing down. When the price breaks out to the upside of the range, the ATR […]

The head and shoulders pattern is formed at the top of an uptrend. It is a bearish reversal pattern. The market forms the first high, which is the left shoulder. It is followed by a higher high, which is the head of the pattern. It is then followed by a lower high, which is the right shoulder of the pattern. The important thing to note is that you need to pay attention to the neckline, which is the support level. To trade […]

A hammer candlestick appears at the end of a downtrend. It indicates a potential reversal to the upside. It consists of a small body with a lower wick twice the size of the actual body. The longer the lower wick, the more reliable the reversal is. The pattern becomes complete when the following candlestick closes above the close of the hammer candlestick. You can take a long position using this pattern. Your stop-loss can be placed before the low of the hammer […]

In this video, you will learn about a trading strategy using the stochastic indicator for buy and sell signals in a range bound market. For example, look at this chart. You have the stochastic indicator added below the price chart. It consists of two lines. They are the two moving averages, the %K line, and the %D line. George C. Lane developed this indicator. According to him, the momentum changes direction before the price […]

The bearish engulfing pattern is a reversal pattern, which signals a potential reversal to come. This pattern consists of a bullish candlestick and is followed by a bearish candlestick, which completely eclipses or engulfs the body of the first candlestick. It indicates that the sellers have overtaken the buyers. For this pattern to form, you need an existing uptrend. This pattern becomes more reliable when the bearish candlestick opens above the close of the bullish candlestick and closes […]