There are different methods of analysis that you could employ when anticipating trading. However, to identify good trading opportunities, you should keep it simple. Here are three common forex analysis techniques you could use to help you shape a trading strategy that best suits your trading styles: technical, sentimental, and fundamental. Technical Analysis This is one of the most widely used types of forex trade analysis. Using past price patterns involves determining the most probable time and place to enter or exit a trade. Forex is one of the most liquid and most significant markets whose price action movements on a chart give you cluesRead More →

Traders on the forex market take time to analyse data to determine how and when to invest. Technical and fundamental analysis are the most common methods of analyzing the market. Fundamental analysis is a great opportunity for investors who are seeking to invest long term. Many factors affect the market and prices of assets. This is why fundamental analysis is very thorough in its data collection. What Is Fundamental Analysis Fundamental analysis is the assessment and measurement of intrinsic values of assets. This is achieved by measuring different macroeconomic and microeconomic conditions. It also analyses the different elements affected by the prices of assets inRead More →

Forex trading is becoming more attractive to every investor because the profitability is impressive. However, becoming a successful forex trader does not happen overnight. Forex trading requires attention and time. Additionally, you have to be good in numbers and have the ability to time markets successfully. Forex trading does not need an impulse trader. You should have the patience to study a market and predict the future exchange rate of a currency. Here are a few tips for becoming a successful forex trader. Top 6Tips for Becoming a Successful Forex Trader 1.    Expand Your Knowledge Base about Forex There are several online courses that youRead More →

CFD (contract for difference) is a financial-derived trading arrangement. In CFD, differences between closing and open trade prices get cash-settled. It is also an advanced strategy of trading commonly used by experienced traders. It is, however, prohibited in the U.S.A. When trading CFD, it means you have agreed to exchange an asset’s price difference from the moment the contract is opened to when it closes. A vital benefit of this kind of trading is that you’ll be able to speculate the movement of prices in all directions. As such, the loss or profit you will make will depend on whether your forecast was wrong orRead More →

The current capital market is quite volatile. This volatility has not only had an impact on asset classes but is also controlling the demand of financial products offering leverage. Contract for differences is a financial tool used to track a variety of assets. These underlying assets include cryptocurrencies, indices, commodities, individual equity shares, and forex. CFD is different from underlying tools in that you aren’t required to post the total capital amount to purchase underlying instruments. As an alternative, you need enough capital to cover the price change of the place you want to enter and exit the trade. Can CFDs offer leverage? Each CFDRead More →

Forex exchange involves trading currencies with the aim of profiting from the variation in currency prices. It is a lucrative business that you can perform any time of day considering the forex market operates 24/7 5 and ½ days a week. However, success in the forex trade is not a guarantee but requires one to know how to trade and understand the tricks of ins and outs in the trade. The following comprises some tips you can employ in forex trade to ensure successful trades. 1.           Learn the Market Take the time to educate yourself on matters to do with foreign exchange trade. Take asRead More →

In any trend-following strategy, there are two outcomes any trader wishes for. These are to enter a trade on time and exit it on time. All traders aim to detect trend changes early enough and exit the transaction on time after exploiting it to the fullest. This is easy in theory and more difficult in practice, with most indicators lagging and not as reliable as they should be.Read More →

The Fibonacci retracements use the Fibonacci sequence that was discovered by Mr. Fibonacci, an 11th-century mathematician. It is argued that there are Fibonacci numbers that occur everywhere in nature, and traders use this sequence in forex trading. Fibonacci retracements are identifiers of key support and resistance levels. When a market curve has made a large upwards or downwards move and seems to flatten at a certain level, this is usually when traders can do the Fibonacci level calculations. In Fibonacci retracements, traders set a target on a set of percentage points on a trade of a particular commodity. If the price falls beyond the lastRead More →

Measuring Forex Market’s Volatility Using Bollinger Bands

Technical analysis has become very common in the forex market. Bollinger Bands, created by John Bollinger in the 1980s, is being used for exceptional insights into price and volatility. He used a moving average technique with two trading bands.  The bands have to be above and below the MA. Compared to a normal MA, the percentage calculation of Bollinger bands is attained by adding and subtracting a standard deviation calculation. Standard deviation measures volatility to show how the market stock price varies from its actual value. Hence, Bollinger bands adjust to the market condition by measuring the price volatility. Using Bollinger bands, a forex traderRead More →

Throwbacks And Pullbacks In Forex Trading

One of the leading ways forex traders succeed is learning the ability to identify price patterns and act accordingly based on the movements. Some chart patterns are easy to read, while others are challenging, especially to the novices. Throwbacks and pullbacks are technical indicators with patterns that novices take time to understand. They can cause panic, especially to novice traders leading to the early exit of the trade. However, once they learn how to read and follow the patterns, throwbacks, and pullbacks become some of their best technical trading strategies. The trading strategies present forex traders with reliable profit-making opportunities, and they are amongst theRead More →