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This page boosts your financial knowledge with our exclusive signals and technical analysis.
A trending market is one in which price is generally moving in one direction.
Sure, the price may go against the trend every now and then, but looking at the longer time frames would show that those were just retracements. 🌊
Trends are usually noted by “higher highs”📈and “higher lows” in an uptrend and “lower highs” and “lower lows”📉 in a downtrend.
When trading a trend-based strategy, traders usually pick the major currencies as well as any other currency utilizing the dollar because these pairs tend to trend and be more liquid than other pairs.
Divergence is a popular concept in technical analysis that describes when the price is moving in the opposite direction of a technical indicator.
There are two types of divergences:
Regular divergence
Hidden divergence
Each type of divergence will contain either a bullish🐂 bias or a bearish🐻 bias.
•Regular divergences signal a possible trend reversal.
•Hidden divergences signal a possible trend continuation.
👉🏽While divergences can occur between price and any other piece of data, they are most commonly used with technical indicators, especially with momentum oscillators.
25/02/2021
Everyone has their own look, personality, talents, and pizza🍕 topping preferences (we like pepperoni and potato chips).
We all like different things and are unique in our own way.😊
Trading is the same way. Our unique personalities will lead us to trade differently from one another.Some may be aggressive, “type A” personality traders while others may be more relaxed, “type B” personality traders.
Trying to force a trade that doesn’t match your personality will result in frustration and can hinder you from making consistent profits.
Types of trading:
- Scalping
- Day Trading
- Swing Trading
- News Trading
- Breaking Out Trading
- Range Trading
- Positioning Trading
What type of forex trader are YOU? 🤓
23/02/2021
Fundamental analysis is a way of looking at the forex market by analyzing economic, social, and political forces that may affect currency prices.
If you think about it, this makes a whole lot of sense! Just like in your Economics 101 class, it is supply and demand that determines price, or in our case, the currency exchange rate.
👉The idea behind this type of analysis is that if a country’s current or future economic outlook is good, its currency should strengthen.
The better shape a country’s economy is, the more foreign businesses and investors will invest in that country. This results in the need to purchase that country’s currency to obtain those assets.
□ Moving averages are one most commonly used technical indicators.
□ A moving average is simply a way to smooth out price fluctuations to help you distinguish between typical market “noise” and the actual trend direction.
By “moving average”, we mean that you are taking the average closing price of a currency pair for the last ‘X’ number of periods.
□ But why not just look at the price to see what’s happening❓
- The reason for using a moving average instead of just looking at the price is due to the fact in the real world, aside from Santa Clause not being real…..trends do not move in straight lines.
Price zigs and zags so a moving average helps smooth out the random price movements and help you “see” the underlying trend.
□ Generally, the smoother the moving average, the slower it is to react to the price movement.
The choppier the moving average, the quicker it is to react to the price movement.
To make a moving average smoother, you should get the average closing prices over a longer time period.
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