Double Tops With Stochastic Divergence
Stochastic Oscillator
The stochastics indicator is one of the most popular Forex indicators. This classic indicator was developed in the 1950s by a trader named George Lane. Essentially the indicator meaAsures the closing price of an instrument against a range over a specified lookback period and registers momentum as either...
Uncovering Bitcoin Transactions: How they Work
A bitcoin transaction is a signed piece of information for the purpose of transferring ownership of a set amount of bitcoins from one individual to another. The transaction records all the details of the sender’s unspent bitcoins, their origin (denoted by the transaction ID, or hash of the transaction),...
How to Apply the Right Trading Tools in the Forex Market
When trading the financial markets, one always faces the dilemma of whether to enter a trade or pass on it. Some forex traders use their “gut feeling” to make this important decision. This instinct or intuition that some feel they have is more-often-than-not based on two principle emotions: greed...
Two Simple Ways to Scalp the Markets
Scalping is a trading strategy or style where a trader makes multiple trades over short-term time frames.
This trading style is a low (profit) margin, high volume strategy that requires attention and dedication. If you choose to become a scalper, you‘ll need to dedicate several hours a day to trading....
What Is the “Kelly Criterion” in Forex?
Put simply, the Kelly Criterion or Formula is a way to calculate how much of their assets a Forex trader should risk on any given trade in order to maximize the return.
It became notorious among equities traders because it was said that Warren Buffet uses a version of it...
How Powerful Is Chaos Theory for Financial Forecasting?
At first glance, the markets are quite chaotic, and certainly very complex.
This seems to be a great fit for applying chaos theory and figuring out a mathematical model to generate good market picks.
Chaos Theory uses cutting-edge science, combined with things like algorithms and artificial intelligence, to generate forecasts.
Yet… there...
Trading the Head and Shoulders Chart Pattern
Technical analysis is an efficient technique used to study price movements of financial markets, with its findings forming a credible guide to future market direction.
One of the most well-known chart patterns is the head and shoulders formation, boasting not only high profitability, but also distinct rules for its assembly.
Although...
A Primer to Understanding Basic Chart Patterns
Do technical trading patterns exist and are they profitable?
This is a question often asked by new traders.
Depending on who you ask, the response will differ. Some academics and investors believe patterns don’t exist – that price action is entirely random, whereas the majority of technical analysts are adamant chart...
Interpret the MACD Indicator Like a Professional
Technical analysis contains numerous indicators, many of which traders use daily in the financial markets. Few, however, attain the popularity of the Moving Average Convergence Divergence (MACD).
Developed in the late 1970s by a gentleman who goes by the name of Gerald Appel, the MACD is primarily defined as a...
Trading Cryptocurrencies Using Technical and Fundamental Analysis
As most market participants are aware, there are two main types of analysis traders use to monitor markets and give them more detailed trade ideas. Technical analysis and fundamental analysis are the main areas of study that can be used for any markets, including new ones like cryptocurrencies.
Fundamental Analysis
This...
Reliable Ways to Prevent Yourself from Overthinking When Trading
When trading an active forex market, free yourself from constant worry and apply surefire ways to stop yourself from overthinking. For an effective trading career, you need to have powerful mental strength. To overcome difficult situations, traders need to stay sharp and get ready with the right attitude. By...
Bitcoin Keys and Addresses: What you Need to Know
Digital keys play a central role in the bitcoin network because they act as proof of ownership for the digital currency, and are necessary when signing digital transactions. Public-key cryptography is the science behind the keys, the encryption process basically uses two mathematically related, but not identical, keys -...
The Origins of the Digital Currency: A Beginning of a Long New Road
In recent times, especially after the 2008 financial crisis, we all became more familiar with financial terms such as “bail-in” and “bailout” and those of us who are not economists realised that the heart of a country’s economy beats in its local financial institutions and banks. Hence, the wellbeing...
Discipline in Keeping Your New Year’s Resolutions
As 2020 draws to a close and we look forward to 2021, I thought it was a good time to offer a refresher on how to maintain those New Year’s resolutions.
Here are several ideas that may help you to maintain your resolutions throughout the entire year.
1) Divide a General...
Accept Losses and Become a Consistent Trader
Learn to take losses. The most important thing in making money is not letting your losses get out of hand – Marty Schwartz
Accepting loss to gain trading consistency is an interesting paradox.
Every good trader endures loss. The difference between a successful trader and failure is understanding how to handle...
The Importance of the US Dollar Index
To say the US dollar is important is an understatement.
According to the 2019 Triennial Survey of turnover in OTC FX markets, the US dollar retained its dominant currency status, on one side of 88% of all trades. Additionally, more than 60% of foreign exchange reserves are denominated in dollars,...
What are V-Shaped, U-Shaped and L-Shaped Recoveries?
A lot of economic commenters have used letters as a shorthand to describe potential economic scenarios of what might happen after the covid-19 outbreak is controlled. They are great as visual aids, but what exactly is the difference between them? What do they mean in practice? After all, we...
The Foreign Exchange Market and Inflation
Income and the price of products are vastly different to what they are today.
Mars Bars in the UK cost 29p in 2000, though cost 60p today.
The median annual earnings for full-time employees in the UK was approximately £30,000 in 2019, while in 2000 employees took around £19,000.
This is largely...
Why Do Spreads Widen?
The difference between a bid (buy) and offer (sell) price is the spread. We understand that the cost to trade is a major consideration for our clients, so we work hard to ensure we offer some of the most consistent and competitive spreads in the market. It’s our mission...
5 Surefire Ways You Can End the Year on a Positive Note
To start a new year feeling motivated and centered, it is key for traders to end the year on a positive note. With a difficult and unprecedented year coming to a close, forex traders have to look forward with more determination. Whether these are efforts for a better trading...
Forex Trading: An Introduction to Trading Strategies and Trading Styles
Without rules of engagement, you essentially operate on emotion instead of a well-ordered approach. This is what a trading strategy provides.
Countless Forex trading strategies are available, therefore choosing a suitable approach can be a challenge.
What’s a Trading Strategy?
You may have heard maintaining discipline is key to becoming a successful...
Gann Swing Charts
One of the core principles of technical analysis is that prices move in trends. Subsequently, the goal of technical analysts is to identify the trend in its very early stages of development. While experienced traders may nod their head in agreement, often beginners face difficulties identifying the trend on...
How to Know if a Strategy Works
The sure-fire way to know a trading strategy works, is to start using it and watch your account steadily grow. But how do we know if a strategy is going to work before we put money into it?
Well, we can’t know for sure what will happen; but we can...
How to Become a Forward-Thinking Forex Trader
Look ahead and prepare for the future by becoming a forward-thinking forex trader. Planning for the future of your trading career is highly beneficial for long-term success. With the uncertainty of the forex market, traders need to plan for both progress and possible setbacks. By practicing the different ways...
The Original Gartley Pattern
When researching the Gartley pattern, one can come across many different versions, as different authors add their own “two-cents”. Newcomers to technical analysis may therefore have some difficulty identifying the original pattern itself as presented in 1935 by H.M. Gartley himself in his book Profits in the Stock Market,...
Five Ways to Survive in Extreme Volatility
When we combine leverage and incredible movement in financial markets, we need to adapt our approach. Otherwise, we run the risk of either being stopped out or in line for a loss that could be disproportionate to our account size.
When we anticipate greater movement in an instrument, the first...
How Global Events Can Affect the Foreign Exchange Market
Over the course of the past two decades, the forex market has grown into the world’s largest financial venue. In fact, according to the Bank of International Settlements (BIS) Triennial Survey for 2019, the forex market regularly posts an average daily turnover of more than $5.0 trillion. While these...
How to Trade FX During Volatile Times: Opportunities and Risk Management Strategies
Experienced traders have learned that global financial markets oscillate between periods of low volatility and period of higher volatility. While these different volatility regimes can be specific to a certain market (stocks, bonds, commodities, FX, etc), it’s common to see the magnitude of market movements impact all financial markets...
Factors Affecting the Cryptocurrency Market Today
Cryptocurrency refers to any digital currency that involves cryptographic technologies. Today, cryptocurrency is one of the fastest growing classes of trading assets, which represents great possibilities for making the profit.
Cryptocurrency is characterized by gradual growth and drop in rate, as well as abrupt changes. Like any other asset, the...
What are the Best Market Entry Strategies When Trading Forex?
One of the most important aspects of Forex trading is choosing the right entry point, the most successful moments in which it is profitable to open a deal.
There are several methods for determining entry points: chart patterns, Japanese candlestick patterns, technical indicators, etc. Let’s look at how to determine...