Recently, I was invited by a friend to help out the wife on a few matters in Forex After a short tutorial, we identified a trade opportunity and I asked her to open the trade order. What followed was a disaster. She ended up muddling the order and opened three positions on the same currency pair, […]
Read Some MoreToday we will discuss some more chart patterns that occur periodically. These two patterns actually occur more regularly than I once thought, so I have decided to include them in here. These two patterns are flags and pennants. The reason why we are discussing flags and pennants together is because they are very similar. the […]
Read Some MoreIf you are to succeed in this journey we call Forex trading, you cannot run away from the concept of support and resistance. You need to know when bullish runs will take a breather, and you also need to know when traders will tire of selling. Some of you have at one time or the other, […]
Read Some MoreI have always asked many traders this question: why chase a market trend that is already far gone and in danger of reversing, when you can simply exercise some patience and catch the reversal using a strategy that has worked wonders so many times in the past? Almost all the time, I am met with […]
Read Some MoreToday we will focus on four examples of how to use Forex options to hedge spot Forex trades. If you need a refresher take a look at last week’s article here. Hedging is a strategy used by institutional traders to protect against the adverse and unplanned effects of trades on an asset in a given market. Now that we have let […]
Read Some MorePeople who own gardens constantly have to keep them trimmed. They do this to keep them neat and prevent them from growing out of control. The same concept is also used in Forex trading. It’s called Hedging. In Forex, hedging refers to the methods and strategies used to protect a trading account from excessive risk. […]
Read Some MoreThis is part 2 of the series, for part 1 go here. In the previous article we looked at how to use support and resistance levels to identify ranges and trending phases. In this part we’ll take a look at an indicator to help us solve this problem. Method Number 2 – Average Directional Index […]
Read Some MoreIn this series on candlestick formations, we will take time to break down several important candlestick formations that constitute market defining moments in the market, and also discuss how they can be combined with other technical indicators to produce signals with a high degree of accuracy. We start this series with a discussion on Haramis. […]
Read Some MoreIn today’s article, we will look at another set of patterns that can be derived from the charts and could be used by the trader to make money from the forex market. This pattern is the wedge pattern. The wedge pattern should not be confused with any other triangle pattern. In a wedge pattern, both […]
Read Some MoreOne of the most common areas of confusion for forex traders is trying to determine which direction the trend will take. We have all heard the saying: “the trend is your friend till it ends”. This holds true in forex, as the institutional traders who control the majority of volume in the forex market will […]
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