A forex broker is a financial services company that provides traders access to a platform for buying and selling foreign currencies. Forex is short for foreign exchange. Transactions in the forex market are always between a pair of two different currencies. A forex broker may also known be as a
What is a Forex Trading Strategy? A forex trading strategy is a technique used by a forex trader to determine whether to buy or sell a currency pair at any given time. Forex trading strategies can be based on technical analysis, or fundamental, news-based events. The trader’s currency trading strategy is usually made up of trading
What is Forex? Forex, also known as foreign exchange, FX or currency trading, is a decentralized global market where all the world’s currencies trade. The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $5 trillion. All the world’s combined stock
In the arena of active trading, the examination of a financial instrument’s price action over many different frequencies, compressions or time frames is known as multiple time frame analysis (MTFA). It’s a widely practiced method of examining instrument-specific pricing charts and a key aspect of technical analysis as a whole.
Divergence occurs when an asset moves in the opposite direction to a technical indicator, usually a momentum oscillator or relative strength indicator. When trading currencies, Forex divergence is typically seen as a sign that the current price direction is weakening and losing momentum, resulting in a possible change of direction.
Trend lines are fairly graphical representations of Forex price behavior that guide Forex traders’ decisions to buy, sell or even issue a stop order in trading. Rooted in the Dow Theory, market prices always indicate a ‘trend’ after discounting several factors such as the political environment that affect it. Thus,
1. Trend trading This involves looking for a new high or low that breaks from an old resistance by at least three pips and then opening a trade from there. Trading on trends requires you to learn how to spot (not predict) trends to profit from Forex. 2. Swing trading
1. Support and Resistance This is where you trade based on a breakout from important levels on the chart. You must first determine the support and resistance levels on a higher time frame and then switch to lower time frames. Go short if the price action breaks a support level
1. Exchange v/s OTC The stock markets are traded at a stock exchange. One of the most well known examples can be trading stocks at an exchange such as the New York Stock Exchange (NYSE). Trading at an exchange come with certain benefits. For one, traders and investors get access
