In trading, like in life, simple things work best. Traders that search how to measure volatility use the average daily range for it. The idea is not a bad one. The average daily range represents the purest form of interpreting a market. The Forex dashboard consists of multiple currency pairs. Either a major pair or […]
Forex trading has much to do with trends. To ride them, traders look for trend continuation patterns. To fade them, they ignore continuation patterns and focus on reversal ones. There aren’t many continuation patterns technical analysis provides. But those that exist are enough for the right positioning. Any journey into continuation patterns technical analysis offer […]
One of the best volatility indicators, the average true range indicator helps traders understand the way a currency pair moves. Moreover, the atr formula considers large ranges that accompany strong moves. Any financial product moves in its own way. Stocks move differently than bonds, bond move differently than currency pairs…and so on. Even among currency […]
Every trader has heard of candlesticks. But not all traders have heard of a Heikin Ashi chart. To know how to read Heikin Ashi Candles, one needs to understand the concept first. Most of the traders take today’s technical analysis for granted. They assume it was always like this. In fact, technical analysis has changed. […]
Technical analysis changes continuously. In the past, traders looked at the market’s basic concepts. Today, the personal computer allows using complicated functions. A linear regression channel is such one. A regression channel and channel trading strategies derived from it are statistical functions traders use to forecast prices. Furthermore, technical analysis splits in two. One part […]
One of the oldest principles in technical analysis, the Dow Theory guides traders to this day. For almost a hundred years, the Dow Theory technical analysis principles fascinated traders. Those still wondering what is Dow Theory, will find this article useful for Forex trading too. Traditionally, there are two ways to look at a market. […]
Every business is about understanding people. So is trading. Only that it’s about understanding the market. Long term trading or position trading is a great way to trade. As such, long term trading strategies appeal to many retail traders. When buying or selling a currency pair, traders make an investment. They hope, eventually, to make […]
Every trader hates the false breakout pattern. However, a whipsaw Forex environment ends up in multiple fakeout moves. Or, false breakout situations. Therefore, a whipsaw on the Forex market is common. Hence, whipsaw trading is a reality for any Forex trader. In Forex trading, and not only, a whipsaw shows levels of increased volatility. And, […]
