There are different ways to analyse price movement in the Forex market. Technical analysis is one way to do it. It involves studying the historical price movement to determine the probable future price movement. Line charts, bar charts, and candlestick charts are applied in technical analysis. They help in showing price fluctuations across different time frames. One very popular chart is the candlestick chart. What is a Japanese Candlestick Chart? Japanese candlestick charting was used back in the 18th century by a rice trader called Munehisa Homma to trade Japan’s financial instruments. Steve Nison later introduced Japanese candlesticks to western…
Author: Kent
Kent
Kent has been working in the FX industry since 2012, and has become a successful, experienced forex expert. He is a regular contributor to our website and provides exclusive insights into the financial markets.
Risk management is one of the most discussed topics in financial trading. Most traders end up with an unsuccessful trading journey because they have never studied what risk management is and how to implement it in their trading plan. Today we’ll cover some basic risk management techniques. How Much Should You Risk? In simple terms, you should not risk more than 1% of your balance on a single trade, and you should not risk more than 3% of your total balance on all open positions at a time. Let’s say you have a $1000 balance in your account. One percent…
Access to the forex market is important to forex traders. With billions of transactions done daily in the market, opportunities to make profits are immense. This is where trading platforms come in. Trading platforms are what gives traders access to the forex market. They are where you do your research, plan your trades, and execute your trading strategy. The most commonly used trading platforms are Metatrader 4 (MT4) and Metatrader 5 (MT5). Today, we are going to be taking a look at Metatrader 5. What is MT5? Launched in 2010, Metatrader 5’s purpose is to provide traders access to the…
There’s a lot to learn when it comes to trading, and all the complicated terminology certainly doesn’t help. Here are a few essentials to help you get started. Pips You might have noticed that currency pairs are usually shown to four decimal places. The pip is the 4th digit shown. So, if the price goes up by 0.0001 then the price has gone up 1 pip. The only time this doesn’t apply is for the Japanese yen (JPY), where the pip is the 2nd digit. Lots A lot represents the volume of currency being traded. One lot is equal to…
In order to open a position, you need to place a trading order on a trading platform. The trading order tells your broker what you want to trade and at what price. It also tells the broker how and when you want to execute the trade. In this article, we’ll look at the different types of trading orders and how to use them when trading. Types of Trading Orders There are many different orders you can choose from, depending on your platform and on your forex broker. These eight orders fall into two main categories. Market orders: An order to…
There are many strategies you can use to trade the Forex market. One strategy is to use Forex chart patterns that regularly occur in the market. These patterns show can you which direction the price may be going in. Some of these Forex patterns are: Double Top This is a pattern that forms after an uptrend. The tops are formed when the price reaches a certain level and can’t rise any higher. When the price reaches that level, it drops a little and then rises again to test the original level where it couldn’t move higher. If the price does…
Axiory, an industry-leading forex broker, has strengthened its account offering by lowering its minimum deposit to just $10. The decision, announced earlier this week, is part of Axiory’s continued effort to offer an even better online trading experience, complete with lower trading costs, improved trading conditions, and better market access. Commenting on the new minimum deposit Axiory Global Marketing Director Dominic Poynter said that the company is seeking to evolve its account offering in line with client demand. The new minimum deposit will open up new opportunities for traders, giving them the chance to access even more great account benefits.…
Forex charts are used to study price changes during a chosen time period. For example, forex charts show minute, hourly, daily, weekly and monthly price movements. This helps traders predict future short term and long term price movements. The most common forex chart types are the line, bar, and candlestick charts. About Forex Charts Line Charts The most basic type of forex chart is the line chart. Line Charts show whether the market is in an uptrend, downtrend or in a range. However they also give minimal information. A line chart is formed by connecting one closing price to another.…
To start, let’s look at three ways of analysing and developing trading ideas. There are three main types of market analysis. These are technical analysis, fundamental analysis, and sentiment analysis. Many traders choose to stick to one type of forex analysis is better, but the best traders usually know how to do all three types of analysis. Technical Analysis This type of market analysis involves studying price charts. The goal is to use difference charts to understand historical price data and recent price trends. You can then use this information to understand how prices may change in the future and…