November 13, 2013 by Rick Buchanan | Comments Off | Filed in Technical Analysis
With the uncertain performance of most stock exchanges in the world, trading via forex trading platform has proved to amongst the investment that is stable regardless of the huge deviation in the market performance.
What are the forex indicators?
1. Moving Average Convergence Divergence (MACD)
If you want to know the strength of the trend as well as the estimated value at the end of the day, then you should use this forex indicator. From the analysis, you can make your prediction on the best time to earn the profits from the difference in pricing. Check the site ForexTradingItalia.COM for more free info about MACD indicator.
2. Moving averages (MA)
This simply tells you the trend of the performance of different currencies on the trading floor. From the trend, you can always make your predictions whenever you want to make the arbitrage profits from each of the currencies.
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Tags: forex indicators, macd, moving average, rsi
April 9, 2013 by Rick Buchanan | Comments Off | Filed in Technical Analysis
Forex technical analysis is used for determining the future price movements of the currencies. There is a wide range of methods which is incorporated in this analysis. Resistance and support lines along with the trend lines are evaluated on the price chart software.
Studies like Elliot waves and Fibonacci retracements are used for predicting the future events. Custom indicators and moving averages play a major role in the technical analysis. This analysis helps you to understand the working of the Forex market which includes the basic understanding of the currencies, economies and analyzing the market.
There are two different kinds of analysis in the Forex market which includes fundamental and technical analysis. Fundamental analysis includes the working of the real economy of the country like trade relations and political developments. Technical analysis looks at the numbers which may be in the form of patterns, curves and charts. The past market data is used for predicting the future developments of the currency.
Forex technical analysis is undertaken with the help of charts that determines the future trends. Technical indicators are also used for validating these trends and predicting the development of these trends in the future. As the trends in the Forex market lasts for a longer duration as compared to the trends in the stock market, therefore recognizing the trends earlier means earning higher amount of profits. It can be done with the help of software charting program that helps in knowing the trend of Forex trading. Resistance and support lines are the basic technical indicators that imply that the price areas of the market are likely to reverse or stall. These lines can go back for months and also for many years. It can be done by finding the areas by locating the reversal points on the historical charts.
Tags: elliot waves, fibonacci retracements, technical analysis
January 1, 2013 by Rick Buchanan | Comments Off | Filed in Trading Explained
One Dollar banknote
The currency market is full of urban legends that can harm a trader’s chances at financial success. By knowing some of the major Forex myths, wise traders can avoid any unnecessary frustrations.
The market is rigged
Another one of the most popular Forex myths is that the currency market is rigged. The Forex market the largest in the world and it is likely that if an individual or company takes a non-businesslike approach to financial trading, it will quickly be spotted. Forex is not a scam and even though losses can occur, a fine-tuned strategy can reap financial dividends for the trader, especially during this economic climate. Accepting that losses do occur and developing a strategy that has a slight edge during these market conditions will bring significant returns.
Losses are the trader’s fault
Forex trading is rarely a way to get rich quick. Trading takes a level of patience, skill and consistency, as well as a knowledge of the market. Losses are not the trader’s fault and are down to market conditions, unless the trader has failed to follow his plan through. The possibility of loss creates opportunities for other winners. Without a small level of risk, no financial return is possible.
A more complex strategy is better
When traders begin with a simple strategy and see small returns, they often change their gameplay, hoping that they will increase their financial return if they evaluate a few more variables. This is often not the case. Profits are usually made at the margin, where even the most successful traders only win slightly more than when they lose. Stick with your original system and focus on managing your money instead.It’s best to develop a strong trading plan that has been tested by yourself. Always take responsibility for the failures and successes of your plan.
Tags: forex myths