The Forex market is a place where both novices and professionals converge, where success stories and failures coexist. What draws people to this market is the multitude of sellers and buyers, all with equal opportunities for conducting technical and fundamental analysis, accessing highly liquid currencies, and executing the best deals available. Moreover, everyone can work independently and utilize the best Forex robots, which automate routine processes, leaving traders to focus on improving their strategies, optimizing them, learning, and making final decisions.
When conducting technical analysis, traders rely on various signals and indicators to help them identify the best trading opportunities, forecast trend movements, and make informed trading decisions. They also utilize such tools when using the best Forex robots, as automated trading also involves using such instruments. One of the best and most popular indicators for traders is the Forex exponential moving average (EMA).
Starting in Forex and understanding the intricacies of how this market operates, you'll inevitably come across the term "speculation." What is speculation in Forex? Despite carrying a somewhat negative connotation, in Forex, this term essentially defines a trader's daily activity, allowing them to profit from the difference between the buying and selling price of an asset. However, speculation can result in both profits and losses, so in speculative trading, risk assessment is crucial: it's about determining whether the profit potential outweighs the potential loss (compensates for risk) or not.
What does Forex hedge mean? The direct interpretation of the term “hedge” is a fence. Figuratively, it can mean insurance or a guarantee. In a broad sense, hedging can be understood as actions aimed at reducing the risk of unfavorable changes in the price of a particular asset. The characteristics of these actions may vary depending on the unique aspects of the market. This article offers a detailed description of Forex hedging and the best strategies for using it.
The Money Flow Index is an indicator (from a group of oscillators) used as part of the FX market tech analysis. The tool was developed by traders Gene Quong and Avrum Soudack, and the principles of its use were described in detail more than 30 years ago. What is its essence, and why should traders and investors know about it? Essentially, the indicator gauges the pressure of buyers and sellers. MFI reflects the intensity with which funds are invested in or withdrawn from an asset.
Every trader wants to catch a graph reversal in time. After all, in this case, they will be able to enter the market at an early stage of a new trend and get maximum profit. Often, for predicting reversals and finding entry points, the concept of divergence is used. This article gives a detailed explanation of what is divergence in Forex trading, how to recognize it, how to use it on charts, and which indicators are the best for this purpose.
Most industries generate income from the sale of goods and services. The exchange of an asset for money is a cornerstone of the economy. Forex works a little differently. Traders constantly buy and sell currencies and make money from market volatility. This business model requires special skills and a willingness to explore new things. This article is devoted to the essential concepts of FX trading and answers to what is bid and ask in Forex.
New Forex traders often tend to overcomplicate things. They delve into the hundreds of technical indicators and try to come up with a perfect strategy. Surely, most of them fail because there is no such thing as a perfect strategy. Trading is a series of iterations that allow you to improve consistently.
Forex attracts traders with its versatility and many opportunities. On the one hand, it can’t be absolutely predicted and “calculated.” There is always room for unforeseen circumstances. However, it is dependent on many factors that can be detected and analyzed. Forex signals help us to succeed in trading and make more profit. This review helps to understand what is Forex signal and explains how to use different types of signals.
Opening a trading account comes with a certain level of responsibility. Traders have to know the basics of market behavior, the functions of trading software, and plenty of terms and principles. Among all the terms, margin and free margin are those that can't be avoided. They can seem simple, but smart traders understand that the ratio of margin and free margin is an essential indicator and can greatly impact trading strategy.
Japanese candlestick charts are a very convenient way to represent price movements. They provide a lot of details for analysis and prediction. Today, most traders use these graphic patterns to enter the market, close the position, set stop-loss orders, and for many other reasons. Their simplicity made them a notable part of Forex's technical analysis.
Candlestick patterns are a relatively rare technical analysis tool. It has been used by merchants for over 200 years and is still extremely popular. Today, most stock, crypto, and Forex traders incorporate it into their working routines. The range of patterns has increased a lot during the last decades. If you combine them with other indicators and oscillators, you’ll get a powerful price prediction instrument.
The Forex market is an extremely competitive field. Not only is it overwhelmingly complicated, but while trading, you are permanently exposed to some percentage of risk. Thus, it’s crucial to find that one broker you can trust and rely on for a fruitful partnership. To do so, it’s important to stick to some determined parameters, which are going to be fully revealed in this article.
Among numerous FX indicators, the Average True Range stands out. Its primary goal is to measure the instability of an asset’s price. It doesn't actually say anything about the vector of the trend but simply shows the level of fluctuations. The metric is used in trend strategies to assess the probability of a trend reversal and determine the moment the price exits the flat. It also serves to set stop loss and take profit orders and is used to estimate the width of the interval when trading using channel strategies. If you have any questions, the ATR indicator is explained in this article.