When interpreting price charts, technical analysts typically use a variety of well established techniques. These might include drawing trend lines or channels to identify trends, recognizing classic chart patterns and classifying the market’s observed price action according to type. Trend Identification Trends consist of a series of higher highs and higher lows, for an upwards […]
Technical analysts use a variety of price chart types to analyze the action of currency exchange rates. They typically use these charts to look for trends and other key chart patterns that will help them forecast upcoming exchange rate movements. The data used to create these charts typically contains opening, closing, high and low prices […]
Technical analysis does not take into account any of the aforementioned fundamental factors, but instead relies solely on technical data obtained and computed from market observables like price, volume and open interest. The basic premise of technical analysis assumes that all available fundamental information is already reflected in the exchange rate for a currency pair. […]
The analysis of financial markets consists of two main schools of thought: fundamental and technical analysis. Although some technical analysis buffs tend to dismiss fundamentals by considering any fundamental news already discounted into the exchange rate, this assumption breaks down during volatile time periods surrounding the release of major economic data or news that differs […]
An important difference between the stock and commodity markets versus the forex market involves the manner in which trades are sized. Instead of shares of stock or bushels of grain, forex transactions need to specify the amount of currency involved. What are Lots? Lots are the minimum transaction size in a market, and futures markets […]
In order to make money in the forex market, a good working knowledge of the quotation conventions is imperative, as well as a strong understanding of other key details of the forex market. A good place to start when it comes to understanding quotations would be with the minimum fluctuation in the exchange rate for […]
Unlike the share trading where there is a central marketplace, the Forex market is decentralised. Therefore, you need a Forex broker and trading platform to help you place trades. The Forex Broker facilitates your trade and the platform is where you place your trades. If this sounds complicated. Please visit our ranked post on the […]
Forex has its own language, that is, special terminology. If you don’t want to be embarrassed in front of other trade