In the first part of this article, we answered two of the six questions presented around the pricing of currencies in the forex market. Now we know how the price quotes displayed on the forex trading platforms are derived. We have also been able to determine that the liquidity providers (banks) set prices in an […]
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Price channels are chart patterns formed when the highs and lows of the candlesticks can be joined by an upper and lower trend line that are parallel to each other. They occur all the time in the market, but traders sometimes have trouble identifying them, which should really not be the case. There are three […]
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In a previous article, we identified the elements that make news trading tick and why traders should include fundamental analysis as part of their trading. We also identified what tools a trader needs to assemble in order to trade the news. Now we will go to the core aspects of fundamental analysis. Fundamental Analysis: How […]
Read Some MoreFundamental analysis is the process of analyzing the economic and socio-political news headlines released to the markets as part of the Economic Calendar, with the aim of trading currencies based on the prevailing market sentiment derived from the news that is released. So we can refer to fundamental analysis as all the processes that you […]
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When to Trade MACD Divergence + Stop Loss and Take Profit Levels Last time we talked about how to spot a MACD divergence and we looked at the different types of divergence, regular and hidden. See Part 1 HERE. Today we’ll go over regular divergence in more depth, explaining where to put the stop loss […]
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The EUR/USD keeps slowly edging up after making a swing low a month ago. The pair opened at 1.2351 and finished the week 159 pips higher, closing at 1.2510. The main movers for the Euro pairs this week have been a couple of rumors concerning the ECB. The German weekly Der Spiegel and U.K.’s Telegraph […]
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Divergence can be one of the more powerful signals in your trading arsenal if used correctly. Today we’ll look at the MACD and the divergence signals it produces, and we’ll use the most common settings for the MACD which are 26 for the Slow EMA, 12 for the Fast EMA and 9 for the MACD […]
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The EUR/USD pair spent last week trading in a tight 129 pips range, moving back and forth between a low of 1.2255 and a high of 1.2384. Just to give a perspective of how small of a range this is, its 2 times smaller then the average range of the past 14 weeks which currently […]
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