Get started

Forex-trading-signals

Banks are falling, what will happen to EUR/USD?The American economy is currently in a state of financial turmoil, with the banking system on the brink of bankruptcy. This has had a major impact on the US dollar and its value against other currencies, such as EURUSD. In this blog post, we will explore the causes and effects of the US financial crisis on EURUSD, identify strategies for trading during a bankruptcy, and analyze what potential long-term impacts may arise. We will also discuss how current economic conditions in the US have affected currency pairs such as EURUSD, so that investors can make more informed decisions when investing in foreign currencies. Overview of the Financial Crisis in the United States The 2008 financial crisis in the United States has had a profound effect on global markets, with far-reaching implications for investors worldwide. To gain insight into this crisis, it is essential to understand how the US banking system works and its connection to major bankruptcies. The country’s banking system consists of two tiers – commercial banks and investment banks. Commercial banks provide customers with services such as loans, mortgages, checking accounts, and saving accounts whereas investment banks specialize in underwriting stocks and bonds for companies who need capital or advice on mergers and acquisitions. Unfortunately, many of these investment banks were forced into bankruptcy due to their risky investments in mortgage-backed securities. This left US-based investors exposed to great losses resulting from stock market declines while global investors endured unfavourable currency exchange rate fluctuations due to the weakened value of the US dollar compared to other currencies like the euro. As a result of this financial crisis, traders should be cognizant of potential long-term effects when trading EURUSD during times when bankruptcy is imminent. Strategies must be put in place to minimize risk throughout this process. The current state of the US economy continues to be precarious following the 2008 financial crisis with ongoing issues that have not been resolved yet. With this being said, understanding how America’s banking system operates and its connection to large bankruptcy cases can help investors make informed decisions when facing these scenarios so they can protect themselves financially going forward. The Impact of Bankruptcy on the US Dollar The US banking system plays a critical role in the US economy, and when banks fail it can cause ripples of disruption throughout society. The recent bankruptcies of some large US banks have had an especially noticeable effect on the American dollar, causing its value to fall sharply against other major currencies. The Federal Reserve has taken action to restore confidence in the currency by lowering interest rates and pumping money into the economy. However, this may not be enough to prevent further devaluation if additional financial institutions go under; furthermore, the size of a particular bank's bankruptcy could influence how hard or soft its impact is on exchange rates. A lack of liquidity can also follow a bankruptcy as lending falls off due to decreased competition among lenders. This makes it more difficult for businesses and individuals alike to find sources of financing which can stifle economic activity and lead to further devaluation of currencies like the US dollar. Moreover, higher interest rates are likely when there are fewer banks around competing for customers; this means credit becomes more expensive or harder to access, leading people away from borrowing and towards saving instead - thus slowing down economic growth even further. Overall, it is essential that investors understand how an event such as a US bank failure would affect their investments in currency pairs such as EURUSD before they consider trading during turbulent times like these. What EURUSD Traders Need to Know The current economic situation in the United States is volatile and can have a dramatic impact on the EURUSD exchange rate. Bankruptcy proceedings could lead to tighter borrowing restrictions, slower economic growth and increases in tariffs or other regulations related to international trade. These factors can cause fluctuations in currency values, meaning investors must be aware of potential changes when trading during times of financial instability or bankruptcy proceedings. At the same time, there are potential opportunities for savvy traders to capitalise on when investing in EURUSD during periods of bank failure due to increased consumer spending that could result from positive changes following bankruptcy proceedings. In order to take advantage of these chances, investors must carefully analyse market conditions and put effective risk management strategies into place. In conclusion, trading EURUSD requires an understanding of how US financial developments may affect exchange rates as well as the ability to identify investment opportunities arising from bankruptcies or other economic downturns. Risk management is essential for success when trading currencies at times like this, so investors should ensure they have appropriate strategies in place before entering any trades. Analyzing the Impact of Bankruptcy on EURUSD As the US economy faces challenges, investors must consider the impact of a potential bankruptcy of a major bank on their investments in currency pairs such as EURUSD. Short-term effects may include a fluctuating exchange rate and resulting risk-aversion among investors, while longer-term impacts can be mitigated by Federal Reserve action, or balanced by other countries' economic downturns. It is thus essential for traders to assess possible outcomes before entering into any trades, alongside having an appropriate risk management strategy in place. Strategies for Trading EURUSD During a Bankruptcy As the US banking system continues to face bankruptcy risk, investors must be mindful of how their investments will be affected. The EURUSD currency pair is particularly vulnerable to instability in the US economy, as it is directly linked to the value of two currencies. In this section, we’ll explore strategies for trading EURUSD during a bankruptcy. First and foremost, it’s important to understand the relationship between bankruptcy and currency devaluation. When a country is facing financial difficulties, its currency can become weaker relative to other major currencies as investors lose confidence in it. This can have an impact on EURUSD exchange rate, so it’s important to monitor news updates related to the financial crisis before trading. It’s also essential that investors diversify their portfolios in order to manage risk during a bank bankruptcy. By investing in multiple asset classes such as stocks and bonds, you can reduce your exposure should one particular asset class decline significantly in value. You may also want to consider investing in non-currency assets such as gold or commodities that are not as affected by currency devaluation associated with bank failures. In addition, automated trading strategies may provide an additional layer of protection from volatility associated with a US financial crisis. Automated trading relies on predetermined algorithms rather than human judgment when making decisions about what trades to make; this reduces potential losses due to human error or emotion-driven decision-making which can lead to poor investment decisions. Finally, monitoring news updates related to the US economy and any potential changes that could affect EURUSD exchange rate is key for staying ahead of market developments and protecting your investments during times of uncertainty. While no one knows exactly how events may unfold following a US bank failure, being informed about changes in interest rates or government policies can help you make better decisions about when and where you invest your money. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
by Lingrid
21
WHAT ARE THE FIBONACCI LEVELS? 🔵 We are not going to focus on the Golden Ratio and the Fibonacci sequence in nature or around us. You can read about it in various books or on the Internet if you are interested. We will find out how these numbers can help in forex trading. Now, let's talk about Fibonacci retracement levels. Now let's get straight to the point. Fibonacci retracement levels look like this: 0.236, 0.382, 0.500, 0.618, 0.764 The Fibonacci extension levels are as follows: 0, 0.382, 0.618, 1.000, 1.382, 1.618 And these are the extension levels used in forex to set orders like "take profit". In other words, according to them, the price often reaches these levels, which should be taken into account in the analysis. Let us agree that Fibonacci levels are an instrument for trend analysis and are not suitable for consolidation. The point is that when the trend is upward, Similarly, for a down trend and support. We find the lower swing levels, then the upper swing levels, and draw a grid between them. 🔵 Fibonacci in a downward trend Let's act in the same way and draw the grid between the two candlestick patterns-swings, but downwards. The chart of EUR/USD, 4-hour timeframe. The assumption is that as the price rebounds upwards, it will hit one of the Fibonacci resistance levels, since the general trend is very strong downwards. Let's see what happened next. The pullback really came and the market slowed down below 0.382, an early hint of exhaustion of the bulls' forces. Finally, at 0.500 the bulls ran out of steam and the level worked as a resistance. And these two levels, 0.382 and 0.500, interact with each other. Their main purpose is as temporary support and resistance. We all know about the resistance and support, so do not expect the price to bounce from these levels. No. These are, first of all, the zones of trader's interest. Therefore, the price at these levels likes to consolidate into micro-channels before it moves on. As you well know, price can break both support and resistance. That means it will similarly break through Fibonacci levels. So, these levels are a guideline, but not an absolute guarantee of pullbacks and reversals. Sometimes levels are broken through, sometimes instead of 0.500 a bounce occurs from 0.618 and lots of other examples. Sometimes the price doesn't care about these levels. The price, as such, moves between levels, and some levels are more significant for it at a certain moment in time, and some are less significant for it. So, in using Fibonacci levels, you will benefit from all the tools in your arsenal that we already know about. The tools we use to filter inputs from support and resistance levels, whether it's Fibonacci or conventional. Say, oscillators with their divergences, price action patterns and more. In fact, let's combine Fibonacci levels with support and resistance. 🔵 Fibonacci retracement with support and resistance levels We have already learned that Fibonacci retracement levels are quite subjective. Like everything in technical analysis, we shouldn't just use them. In this case, we need a level enhancer. This is when ordinary support or resistance is well combined with Fibonacci retracement levels. An uptrend, so many green candles. it's all very nice, but where to enter? Especially since the price clearly went with low volatility. We use the Fibo and let's add a mirror level, where resistance has become support. It can be seen very well. Notice how it combines with the 0.5 level. Now we have to wait for the price to interact with this level. As you can see, the price really respected that level, it worked as support and did not let the price go further up. As you understand, support and resistance are, first of all, the zones of interest. The area that triggers the maximum reaction of the price. Not the least of the reasons is that everyone uses these levels. And, consequently, the more institutional traders apply Fibonacci levels, the more these levels influence price behavior. There is a direct correlation. This is why simple support and resistance levels also work. Of course, there's no guarantee that these levels will bounce the price, but we don't need guarantees, because we don't know that they don't exist in trading, do we? We know very well. But here is the zone where the price should be watched closely Fibonacci levels are quite suitable for that. 🔵 Fibonacci levels and trendlines Another way to apply Fibonacci levels is with another basic technical analysis tool. And what tool comes after support and resistance? That's right trendlines. Many traders use Fibonacci retracement levels exactly in an uptrend or downtrend, so combining them with trendlines makes confluence. Let's take a look at the next chart. We should take a trade, if such a situation arises, let's say, when the price touches the trendline. However, let's add Fibonacci retracement levels and see what happens. And we will get a more accurate entry zone. Let's use two swing values and watch what happens. We are especially interested in the levels of 0.500 and 0.618. Here we have it, the level 0.618 (61.8%) worked out as support, and it is right on the trendline. It's time to enter to further increase the trend. Two simple tools sometimes give equally simple results. Similarly, you can use the Fibonacci levels with horizontal support and resistance. In this case, Fibonacci will act as another way to filter entries at support and resistance levels. ✅ Conclusion Keep in mind that Fibonacci levels should not be used alone, you will lose everything. They should be combined with other elements of technical analysis, such as indicators, trend lines, Price Action patterns, etc. They are auxiliary tools and you should always remember about it.
Education
by DeGRAM
1
banks are on fire again...The banking system is bursting at the seams again. It all started with the recent series of bankruptcies of several American banks at once and it happened in just a week, which was an echo of the problems of the 2007 crisis, which, as people hoped, we were able to solve. The main signal of the disaster was a sudden failure in the Silicon Valley bank. On March 9, people's deposits disappeared, losses totaled an incredible $42 billion, which brought out an underestimated risk in the system. The problem was hidden in long-term bonds, in which the bank invested during a period of low interest rates and high asset prices, and when the Federal Reserve System sharply raised rates, the bank began to have problems. As a result, the bank was left with huge losses that were not previously recognized due to the fact that American capital rules do not require most banks to report a drop in the price of bonds that they plan to hold to maturity. 620 billion dollars – that's how many unrecognized losses were in the entire banking system of America at the end of 2022. To understand how much it is: this amount is equal to about a third of the total capital stock of American banks. The pandemic has brought even more problems to the economy, and the banking system has become even more shaky. A large volume of new deposits poured into banks, and the Federal Reserve's stimulus measures pumped cash into the system. These deposits were directed by banks to purchase long-term bonds and government-guaranteed mortgage-backed securities, and all this increased the risk of ruin in the event of an increase in interest rates. Having bought bonds with depositors' funds, the bank essentially used other people's funds, but the problem was not that, but that holding bonds to maturity requires matching them with deposits, and as rates rise, competition for deposits increases. At large banks, such as JPMorgan Chase or Bank of America, rising rates tend to increase their earnings thanks to floating-rate loans. However, in about 4,700 small and medium-sized banks with total assets of $10.5 trillion, rising rates tend to reduce their margins, which helps explain why stock prices of some banks have fallen. Another problem for banks is the risk that depositors will start withdrawing their deposits during the crisis, which will force the bank to cover the outflow of deposits by selling assets. If this happens, the bank's losses loom, and its capital stock may look comforting today, but most of its filling will suddenly become an accounting fiction. That is why the Federal Reserve System acted this way last weekend, being ready to provide loans secured by bank bonds. By providing loans with good collateral to stop the flight, the Fed is right, but such easy conditions come with certain costs. By creating the expectation that the Fed will take on the risks of interest rate changes in a crisis, they encourage banks to behave recklessly. The coming year requires regulators to make the system safer and less risky for the people. It is necessary to abolish some strange rules that do not require reporting and answers for increased risks that relate to small and medium-sized banks, Now the government has announced its intention to rescue depositors of the Silicon Valley Bank, which indicates that such banks carry a systemic risk and they need to be rescued in order not to destroy the entire economy of the country. But saving depositors is only half the job, in order to eliminate the repetition of today's and past problems, it is necessary to introduce the same accounting and liquidity rules that big banks follow, as is the case in Europe, and will have to submit plans to the Fed for their orderly resolution if they fail. These decisions and actions concern not only the United States, these rules should require the entire banking sector to recognize the risks associated with an increase in interest rates. Unrealized losses carry the risk of bankruptcy and banks with such losses should be confirmed by more thorough control and verification than those who do not have such losses. Timely testing will help to avoid bankruptcy, which would simulate a situation in which the bank's bond portfolio is released to the market, while rates rise even more. After that, it would be possible to determine whether the system has sufficient capital to avoid bankruptcy or not. Banks, of course, will resist additional control, increasing capital reserves, but all this will help to improve the quality of system security. Depositors and taxpayers around the world face intense fear, and they should not live with the fear and fragility that they thought had gone down in history many years ago.
SEducation
by Lingrid
7
Timeline for an ideal trading dayEvery day, traders around the world wake up and begin their day with the same goal: to make money. But how do they go about doing that? What is the ideal timeline for a trading day? In this blog post, we'll outline the perfect day for a trader, from start to finish. Wake up It's no secret that successful traders need to be up bright and early to get a jump on the day's market action. But what many people don't realize is that there's more to it than just setting an alarm clock and getting out of bed. To start the day off right, it's important to do some light exercises to get the body moving and the blood flowing. A quick jog or some simple calisthenics can make a big difference in terms of energy levels and mental acuity. Just as important as physical activity is eating a healthy breakfast and drinking plenty of coffee. Breakfast provides the body with much-needed nutrients after a long night's sleep, while coffee helps wake up the mind and get those creative juices flowing. So there you have it: the perfect way to start your day as a trader. By following these simple tips, you'll be well on your way to making money in the markets. Check the news As a trader, it's important to start your day by checking the news for any major announcements or news stories that could affect the market. You should find a reputable source for business news and look for any breaking news stories that could impact the stocks on your watchlist. This will help you be more informed and prepared when making trades throughout the day. Make a watchlist When making a watchlist of stocks to trade, there are a few key things to look for. First, you want to find stocks that are trading at new 52-week highs or lows. This can be a good indicator of a stock that is starting to move in a particular direction and could be worth watching. Another thing to look for is stocks that have unusual volume. This could be an indication that something is happening with the stock and it is worth keeping an eye on. Additionally, you want to look for stocks that are making large percentage moves. This could be an indication that there is some momentum behind the stock and it could be worth taking a closer look at. Finally, you want to identify stocks that are breaking out of chart patterns. This could be an indication that the stock is about to make a move and it would be wise to keep an eye on it. Plan your trades When planning your trades, the first thing you will need to do is take a look at your watchlist and identify which stocks look like they are ready to make a move. You can use a variety of indicators to help you with this, such as 52-week high/low, unusual volume, large percentage moves, or breakouts from chart patterns. Once you have identified which stocks look promising, you will then need to review your charts for those stocks and identify potential entry and exit points. Once you have found potential entry and exit points, you will then need to calculate the risk/reward ratio for each trade. This will help you determine whether the trade is worth taking. To calculate the risk/reward ratio, you will need to find out how much you are willing to lose on the trade and how much you think you can gain. For example, if you are willing to lose $100 on a trade but think you could gain $200, then the risk/reward ratio would be 1:2. After calculating the risk/reward ratio, you will then need to decide which trades you are going to make. You should always consider your risk tolerance when making trading decisions. Once you have decided which trades to make, you will then need to place your orders. Execute your trades When it comes time to execute your trades, there are a few things you need to keep in mind. First, you need to find a stock that you want to buy or sell. You can do this by researching the stock and watching for market trends. Once you have found a stock that you want to trade, you need to place an order with your broker. Your broker will then execute the trade on your behalf. Once the trade is executed, you will have a position in that stock. You can then exit your position by placing another order with your broker. It is important to remember that you should only trade with money that you can afford to lose. Trading is a risky investment and there is always the potential for loss. Before making any trades, be sure to do your research and understand the risks involved. Review your trades As a trader, it is important to review your trades at the end of the day. This will help you learn from your successes and failures, and make better trades in the future. When reviewing your trades, there are a few things you should keep in mind. First, consider whether you made the right decision in entering the trade. If not, what could you have done differently? Second, think about whether you exited the trade at the right time. Did you give the trade enough time to play out? Were there any warning signs that you missed? Finally, reflect on what you learned from the experience. What went well? What could have been done better? Taking the time to review your trades at the end of each day is an important part of becoming a successful trader. By learning from your mistakes and celebrating your successes, you will be able to make more informed and profitable trades in the future. End of day As the end of the day approaches, it is important for traders to take some time to review their trades and assess their performance. This process allows traders to determine what they did well and what they can improve on. It also helps traders organize their thoughts and trading strategies for the next day. Taking the time to review your trades at the end of each day is an important part of becoming a successful trader. When reviewing your trades, you should consider factors such as whether you made the right decision in entering the trade, whether you exited the trade at the right time, and what you learned from the experience. By taking the time to review your trades on a daily basis, you will be able to learn from your successes and failures and become a better trader. After you have reviewed your trades, it is also important to take some time to relax before going to bed. This will help you be fresh and ready to start trading when the markets open. Trading is a demanding activity that requires focus and concentration. If you are not well-rested, you will not be able to perform at your best. So make sure to take some time to wind down before bed so that you can be ready to start fresh tomorrow. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
11
WHAT YOU NEED TO KNOW ABOUT TRADING FOREX ON FRIDAY🔵 Friday is a relaxed day with the weekend ahead, followed by a working Monday. How does this affect the market? How do the big players behave on this day? Who holds positions over the weekend, taking risks? Today we will figure out what to keep in mind when trading Forex on Friday, why this day's candle is important, what tips can be extracted from the price direction on this day, and consider a few more important nuances that you are unlikely to think about. ▶️ The Friday news and the NonFarm. Also, newbies should remember that Friday in America on the dollar there are often significant news releases, such as non-farms, which can really shake the market. So, on Friday, don't forget to check the economic calendar. Notice if there are any significant news marked with three red dashes on the calendar. So, there is no point in trading or following the market today. You can calmly leave it and go have a rest. ▶️ The direction of the movement in the second half of the day is the key to the momentum on Monday. The next thing you need to pay attention to is the movement in the second half of Friday and up to the market close. If the price is steadily moving up in that period, we should expect it to continue on Monday. Correspondingly, if the price is steadily going down, we can expect this impulse to go on at least during the first half of Monday. And we are interested in a clear and directed movement. Why it happens, I think, is clear: the big players are buying without fear that something will happen over the weekend. In other words, they are confident in the absence of news, they confidently buy or confidently sell and this means that on Monday we can expect the momentum to continue. ▶️ Weekly candlestick formation In general, the market does not like to change the shape of the weekly candlestick on Friday. Therefore, looking at the chart on the W1 timeframe, and looking at the practically formed weekly candlestick, we can assume what the movement will be at the end of the day. For example, this Friday, at noon on the EURUSD chart, the weekly candlestick has a rather long tail, which indicates that the bulls have already been taken out. Plus, a pretty deliberate downward price move. Even if you take into account the non-farms, often they only take out the stops and then the price recovers in just a couple of hours. So, most likely, the downside movement will continue till the end of the day or the price will stay at the same level. But we should not expect any appreciable rise. Or the weekly candlestick by 12:00-14:00 GMT on Friday is full-body bullish, or full-body (large body, small shadows) bearish, you should not expect a significant price movement in the opposite direction till the end of the day. Accordingly, in this case, if you trade within the day, it makes no sense to look for sell trades, if the weekly candlestick is obviously bullish. Of course, if the weekly candlestick is indistinct, for example something like a doji, the price may go in any direction, and it is difficult to predict anything reliable by such a candlestick. But a solid weekly candlestick allows to rather accurately predict the market behavior on Friday afternoon: a bearish one is down, and a bullish one is up. Or almost no change, which happens more often than we'd like. ▶️ Why is Friday so significant? A huge amount of forex trading is intraday trading. High-frequency and intraday traders account for up to 80% of transactions in the market. And they all get out of the market before Monday. So, who are they those people who open positions on Friday and leave them for the weekend? After all, anything can happen over the weekend. They are the big traders, various serious institutions who have more information than us or the media. At the same time, they agree to the risk of transferring trades through the weekend, they pay swaps. That is, these are very significant traders and the direction of their positions is worth watching, at the very least. Therefore, what happens on Friday often has a significant impact on the further price movement, and can give an impulse for Monday and the whole next week. In addition, according to statistics, Friday is often the minimum or maximum point of the weekly candle. For this reason, we should expect the continuation of the directional movement of the price, if it is present in the weekly candlestick. If you take a single Friday candlestick of D1, in the case if it has any of the signals by your trading system, or by Price Action in general, it is worth paying close attention to it. ▶️ When to open a position with a signal on D1, on Friday or Monday? When it is better to open a position in the presence of a signal on D1 at market closing on Friday evening or at market opening on Monday? The answer is simple: we open positions at market opening on Monday. If there is a gap, we trade it, and if there is no gap, we trade our set-up. Because if you open a position on Friday night, a huge gap can simply take your stops out on Monday and you will make a loss (plus your order may slip). Therefore, if you see any signal on Friday night, you better open positions on Monday. ✅ Conclusion. In addition to the above, we should not forget that many traders close trades and fix profits on Fridays, not wanting to roll over positions through the weekend. This can be due to a possible gap, as well as with the desire to exit the position and quietly go to the weekend. So at the very end of the day if there was a clear bullish trend, price rolls back a bit (bulls fix profit), if there was clearly a bearish trend - price moves a bit higher (bears close positions).
Education
by DeGRAM
2
How to trade trending markets?A trending market is defined as a market where prices are moving in a consistent direction over a period of time. There are many different ways to trade in trending markets, but some common methods include using moving averages, identifying areas of value, and recognizing chart patterns. This article will discuss different aspects of trading in trending markets and provide tips on how to trade in these conditions. Whether you're looking to take profits or cut losses, this article will give you the information you need to make informed trading decisions. Moving averages Moving averages are one of the most commonly used technical indicators by traders. A moving average is simply a line that is plotted on a chart that shows the average price of a security over a certain period of time. The most common time periods used are 10, 20, 50, and 200 days. There are different types of moving averages, but the two most popular are the simple moving average (SMA) and the exponential moving average (EMA). The SMA is calculated by taking the sum of all prices over the specified time period and dividing it by the number of prices in that period. The EMA, on the other hand, gives more weight to recent prices. Traders use moving averages to help identify trends in the market. When price is above a moving average, it is generally considered to be in an uptrend. Conversely, when price is below a moving average, it is typically considered to be in a downtrend. One way to use moving averages is to look for crossovers. A crossover occurs when two different moving averages cross each other on a chart. For example, if the 50-day SMA crosses above the 200-day SMA, it could be indicative of a new uptrend forming. Alternatively, if the 50-day SMA crosses below the 200-day SMA, it might be indicative of a new downtrend beginning. Crossovers can also be used to generate buy and sell signals. For instance, if price is trading above both the 50-day SMA and 200-day SMA, then traders might look for buy signals when price pulls back towards either of those Moving Averages. Similarly, if price is trading below both Moving Averages, then traders might look for sell signals when price rallies back up towards either MA. Moving averages can also be used to help traders identify areas of support and resistance. If price has been trending higher and keeps bouncing off of the 50-day MA, then that MA could be acting as support in an uptrending market. Likewise, if price has been trending lower and keeps bouncing off of the 200-day MA, then that MA could be acting as resistance in a downtrending market. Area of value An area of value is simply a point in the market where traders believe the price is either undervalued or overvalued. Traders use this concept to find potential entry and exit points in a market, as well as to manage risk when trading in a trending market. When looking for an area of value, traders should consider both the price action and the underlying fundamentals of the market. For example, in a bullish trend, an area of value may be found at a support level where the price has bounced off multiple times. Alternatively, in a bearish trend, an area of value may be found at a resistance level where the price has failed to break through multiple times. It is important to note that areas of value are not static; they can move up or down over time as market conditions change. As such, traders should regularly monitor both the price action and the fundamentals to ensure that their areas of value are still valid. Once an area of value is found, traders can then look to enter into a position. When doing so, they should consider both their risk appetite and their desired profit-to-loss ratio. For example, a trader with a higher risk appetite may choose to enter at a point closer to the current market price, while a trader with a lower risk appetite may wait for the price to reach their area of value before entering into a position. Once in a trade, it is important to monitor the market closely and have exit strategies in place should the market move against you. If the market does move against your position, you can either cut your losses or ride out the storm and hope that prices eventually rebound back in your favor. Remember, however, that past performance is not necessarily indicative of future results so always do your own research before making any trades. Chart pattern Chart patterns are a useful tool that traders can use to signal future price movements. There are three main types of chart patterns - reversal, continuation, and bilateral. Reversal chart patterns occur when the price trend reverses direction. The most common reversal chart pattern is the head and shoulders pattern, which is characterized by a peak followed by two lower highs with a trough in between. This pattern signals that the current uptrend is coming to an end and that prices are likely to head lower in the future. Continuation chart patterns occur when the price trend continues in the same direction. The most common continuation chart pattern is the flag pattern, which is characterized by a period of consolidation following a sharp price move. This pattern signals that the current trend is likely to continue and that prices are likely to move higher or lower in the future. Bilateral chart patterns are characterized by a period of consolidation with support and resistance levels that converge towards each other. The most common bilateral chart pattern is the Pennant Pattern, which is formed when there is a sharp price move followed by a period of consolidation. This pattern signals that there is indecision in the market and that prices could move either higher or lower in the future. Tips for identifying chart patterns: - Look for well-defined patterns with clear support and resistance levels - Pay attention to volume; there should be an increase in volume when the pattern forms - Use Fibonacci retracement levels to help you identify potential support and resistance levels. Support and resistance When trading in trending markets, it is important to be aware of support and resistance levels. Support and resistance levels are price points where the market has difficulty breaking through. In a bullish trend, the support level is the lowest point that the market has reached before bouncing back up. In a bearish trend, the resistance level is the highest point that the market has reached before falling back down. Support and resistance levels can be used to signal future price movements. For example, if the market is approaching a support level, this may be seen as a buying opportunity as the market is likely to bounce back up from this level. Similarly, if the market is approaching a resistance level, this may be seen as a selling opportunity as the market is likely to fall back down from this level. It is important to note that support and resistance levels are not static; they can move up or down over time as market conditions change. As such, traders should regularly monitor both the price action and the fundamentals to ensure that their levels are still valid. When trading in trending markets, it is also important to have exit strategies in place should the market move against you. If the market does move against your position, you can either cut your losses or ride out the storm and hope that prices eventually rebound back in your favor. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
9
Why every trader need money management?Almost every trader, at some point in their career, wonders if they need money management. The answer is a resounding yes! Having the proper business mindset is essential to success in trading. This includes having the right attitude, being disciplined, and knowing how to manage your emotions. Without these things, it is very difficult to be successful in the markets. In this article, we will discuss why every trader needs money management. We will talk about the importance of having the proper business mindset, and we will also discuss some of the key components of an effective money management plan. By the end of this article, you will have a better understanding of why money management is so important for traders, and you will be able to start implementing some of these concepts into your own trading strategy. Business mindset Trading is a difficult business. It requires long hours, dedication, and a lot of hard work. But even with all of that, most traders still fail. Why is that? The answer is simple: they don't have the proper mindset. In order to be a successful trader, it is important to have the proper mindset. This means having the right attitude, being disciplined, and knowing how to manage your emotions. If you can master these things, you will be well on your way to success in the markets. Attitude is everything in trading. You have to be positive and believe in yourself, even when things are tough. Discipline is also key. You need to be able to stick to your trading plan, even when you are losing money. And finally, you must be able to control your emotions. Fear and greed are two of the biggest enemies of traders, so you must learn how to control them. If you can develop the proper mindset, you will be well on your way to success in trading. So what are you waiting for? Start working on developing the right attitude today! Manage losses When trading, it is essential to have a well-defined money management plan in place. This plan should include setting stop-loss orders and taking profits at predetermined levels. By having a plan in place, you can help keep your emotions in check and make more informed decisions about when to enter and exit trades. Stop-loss orders are placed with a broker in order to limit losses on a trade. When the price of the security reaches the stop-loss price, the trade is automatically sold. This type of order can be very helpful in managing risk, as it takes the emotion out of the decision of when to sell. Taking profits at predetermined levels is also important in money management. By doing this, you can take some emotion out of the decision of when to sell and lock in profits. It is important to remember that no one knows where the market will go in the future, so it is important to take profits when they are available. It is also essential to have a risk management strategy in place. This strategy should define how much capital you are willing to risk on each trade. It is important to remember that even the best traders lose money on some trades, so it is important not to risk more than you are comfortable with losing. By having a well-defined money management plan, you can help keep your emotions in check and make more informed decisions about when to enter and exit trades. This can ultimately help you improve your overall success as a trader. Confidence and self-control Confidence is key for any successful trader. A clear understanding of the market and your personal trading strategy is essential to maintaining a level head and making sound decisions. Being mindful of your successes as well as your failures allows you to learn from your mistakes and build upon your strengths. Practicing in a simulated environment gives you the opportunity to become more comfortable with the decision-making process before putting real money on the line. Self-control is another important aspect of trading. Emotions such as fear and greed can cloud your judgement and lead to poor decision making if left unchecked. Having a plan in place and sticking to it can help you stay focused on your goals even when things get tough. Diversifying your portfolio is also crucial in managing risk and ensuring that you don't put all of your eggs in one basket. By developing confidence and self-control, traders can set themselves up for success. These qualities can help them make sound decisions, manage risk, and stay calm in the face of market volatility. Keeping emotions out of trading When it comes to trading, one of the most important things that you can do is keep your emotions in check. This can be difficult to do, but it is essential for success. One of the best ways to keep your emotions in check is to have a system or strategy in place that you stick to no matter what. This will help take the emotion out of the decision-making process. Additionally, it is important to know when to walk away from a trade. If you are feeling emotional about a trade, it is often best to just step away and take a break. It is also important to have the discipline to stick to your system or strategy even when it might not seem like the best thing to do in the moment. By keeping your emotions out of trading, you will be more likely to make sound decisions and be successful in the long run. Decision making Traders need to be aware of their goals if they want to be successful. This means having a clear understanding of the risks and rewards involved in each decision. It is also important to have a plan for how to execute each decision, as well as being prepared to accept the consequences of those decisions. Making sound decisions is crucial for traders. What are your goals? Are you looking to make a quick profit or build your portfolio over the long term? Once you know, you can develop a plan that takes into account the potential risks and rewards involved in each decision. For example, if you are looking to make a quick profit, you might be more willing to take on more risk. On the other hand, if you want to build your portfolio over the long term, you might be more conservative with your trades. It is also important for traders to identify when they are making an emotionally-based decision. Emotions can cloud our judgment and lead us to make poor decisions. If you find yourself getting emotional about a trade, walk away and come back later with a clear head. Additionally, it is crucial to have the discipline stick to your system or strategy even when it might not seem like the best thing to do in the moment. Making sound decisions requires traders have a clear understanding of their goals, the risks and rewards involved in each decision, and how emotions can impact their ability make rational decisions. By having plan and sticking it, traders increase their chances success in the markets. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
12
Simple ways to improve trading disciplineIn order to be successful in any market, it is essential to have trading discipline. This blog post will discuss what trading discipline is, why it is important, and how to improve it. Having self esteem and a positive outlook are crucial for any trader, as well as being able to stick to your trading plan. There are no shortcuts to success, so traders need to be patient and handle losses in order to achieve their goals. The importance of trading discipline Trading discipline is key to success in any market. This blog will explore what trading discipline is, why it is important, and some tips on how to improve it. What is trading discipline? Trading discipline is the ability to stick to a plan and not let emotions get in the way- one of the most important factors for success in any market. A lack of discipline is often one of the main reasons why traders fail. Why is trading discipline important? Having a trading plan that you can stick to is crucial, and this plan should be based on sound analysis. Once you have a plan, you need to be disciplined enough to follow it; however, this can be difficult as there are often temptations to enter trades that are not in line with your plan. Additionally, it is easy to let emotions get in the way of your decisions- which can lead to bad trades. How do I improve my trading discipline? To be successful, traders need to be patient and handle losses well in order to achieve their goals. Some tips on how to improve your trading discipline include being selective with your trades- only taking trades that meet your criteria, and waiting for the right opportunities rather than taking every trade that comes along. In conclusion, trading discipline is essential for success in any market and there are no shortcuts to success. By following these tips, you can improve your trading discipline and increase your chances of success. Why having self esteem is key to being a successful trader? Self esteem is incredibly important for traders, as it is key to success. Traders with high self esteem are more likely to take responsibility for their own success or failure, believe in their own ability to succeed, take risks, handle losses, and stick to their trading plan. Conversely, traders with low self esteem are more likely to second guess themselves, give up after a loss, take too much risk in an attempt to recoup losses, or abandon their trading plan. Self esteem is not something that can be faked – it’s either there or it isn’t. And it’s not something that can be built overnight. It takes time, effort and patience to develop self esteem. However, it is worth the investment, as traders with high self esteem are more likely to be successful in the long run. There are a few things that traders can do to build their self esteem. Firstly, they need to have realistic expectations. They need to understand that there will be ups and downs in the market and that they will make losses as well as profits. Secondly, they need to develop a positive mindset. This means looking at the positives even in tough times and believing in themselves even when things are tough. Lastly, they need to take small steps and celebrate each victory, no matter how small. Building self esteem takes time and effort but it is worth it for traders who want to be successful in the long term. How your personal life can affect your trading discipline? Your personal life can have a big impact on your trading discipline. For example, if you’re going through a divorce or have a sick family member, you may be more likely to take risks in your trading. That’s why it’s important to be aware of how your personal life can influence your trading. If you have any major life changes, it’s important to reassess your risk tolerance. And make sure that you stick to your rules and discipline. Don’t let emotions get in the way of making rational decisions. It can be helpful to keep a journal of your trades. This can help you track your progress and reflect on your successes and failures. By doing this, you can identify any patterns in your trading that may be influenced by your personal life. Making small tweaks to your trading strategy can also help you stay disciplined. For example, if you find that you tend to take more risks when you’re stressed, try setting stricter limits on how much risk you’re willing to take. Or if you find that you tend to impulsively buy or sell when the market is volatile, consider using stop-loss orders. The bottom line is that being aware of how your personal life can affect your trading is crucial to success. There are no shortcuts to success—traders need to be patient and handle losses as well as wins. But by sticking to your rules and being disciplined, you increase your chances of success in the long run. There are no shortcuts to success There are no shortcuts to success. You need to put in the work, be willing to sacrifice, and be persistent and consistent. Luck is also a factor in success. You need to be willing to put in the work if you want to be successful. This means being disciplined and sticking to your trading plan. It also means being patient and not giving up when things get tough. You need to be willing to sacrifice your time and energy if you want to be successful. This means making trading a priority and not letting other commitments get in the way. Luck is also a factor in success. While there are things that you can do to increase your chances of success, there is no guarantee that you will be successful. The markets are unpredictable and anything can happen. The bottom line is that there are no shortcuts to success. If you want to be successful, you need to put in the work and be willing to sacrifice. You also needto be persistent and consistent. Luck is also a factor, but there are things that you can do to increase your chances of success. Writing down your rules and being strict with yourself Many traders are not successful because they do not have well-defined rules, which are important because they help to keep you disciplined and focused. Without rules, it is easy to get sidetracked or to make impulsive decisions. Having a set of rules that you strictly adhere to can help you to avoid these pitfalls. It is also important to be flexible and adaptable in your application of the rules. The market is constantly changing and evolving, so your rules need to be able to change with it. Reviewing your rules on a regular basis will ensure that they are still relevant and effective. There are no shortcuts to success in trading; you need to be disciplined, put in the work, and be willing to sacrifice. Luck is also a factor but there are things you can do to increase your chances of success--writing down your rules and being strict with yourself is one of them. Being patient and handling losses Successful trading requires patience and the ability to handle losses. It is important to be patient when looking for the right opportunity to enter a trade. You also need to accept that losses are part of the process and not let them get to you emotionally. Finally, you must have realistic expectations about the market and understand that there are no guarantees you will make money.
OANDA:XAUUSDEducation
by Lingrid
8
WHAT DOES “TRADE WHAT YOU SEE” MEAN?🔵 As a forex trader, you've probably heard about how important it is to keep your emotions under control and follow reason and objective rather than acting on impulses fueled by greed, hope, or fear. But knowing not to trade emotionally is one thing; understanding HOW NOT to trade emotionally and putting that information into practice is quite another. Because of the prehistoric "fight or flight" reflexes that have guided our existence as a species for thousands of years, the human brain is designed to operate against us in the market. The majority of traders, regrettably, are unable to perform to their full capacity on the market due to the same causes. The more rational and objective frontal lobe of the brain, which is the newest section of the human brain and allows us to plan, reason, and make sense of complicated ideas, must thus be used to design a strategy if you want to become a consistently profitable trader. We may ensure that we act on reason and objectivity rather than emotion by learning to trade in what we see rather than what we think. The following information will help you to better understand why it is important to trade what you see rather than simply what you think as well as how to make sure you do so. 🔲 Stop trying to "outsmart" the market Trying to guess what the market will do next, with no real basis or trading setup, is like gambling on a slot machine or a roulette wheel. Yet every day, novice traders, as well as unsuccessful experienced traders, make exactly this emotional trading mistake. Instead of looking at the price chart and checking it against their forex trading plan to see if any price action setups are present, many traders simply "manifest" some idea of what price "should" be doing. When you are not trading on obvious and visible price events or according to a pre-designed trading strategy, you are simply acting on emotions and feelings rather than objective analysis of price movement. Many traders trade emotionally after a losing trade or after a winning trade because they succumb to the feelings of revenge that a losing trade causes, or the greed that a winning trade often causes. It is in these moments that traders stop trading based on what they see on the chart and start trading based on what they "think" or feel, and it is these moments that separate consistently profitable traders from unsuccessful amateurs. 🔲 Don't marry a trade It is important to understand that just because you "think" that something will happen in the market, it does not mean that it will. Similarly, even if you find a very obvious and "perfect" at first glance setup, you must always remember that the Forex market is a dynamic and constantly changing arena where anything can happen at any moment, so do not bet on the farm just because you think you have spotted the "right thing", because that does not happen in Forex, or in any market in general. Instead of allowing yourself to get emotionally attached to any trade or any idea of what the market might do, you need to learn to trade emotionally detached from your trades. Allow price action to light your way through the noise and confusion of the market, while remembering that you must constantly manage your risk even when trading setups look "perfect." Always make sure you are trading according to the concepts of your forex trading strategy and not just on a "whim", if you are trading on price action, then follow the tracks left by price, instead of going astray and succumbing to what you think the market "should" do or "might" do. 🔲 Learn to control yourself One obvious but often overlooked fact about Forex trading is that the market simply does not care whether you win or lose money, it is unaware of your existence and has no emotional reactions to you. However, most traders react emotionally to their trades and to the market, thereby allowing an inanimate being to control their behavior instead of controlling it itself. You won't be able to consistently make money in the market until you learn to control your emotions and reactions to the market. Once you learn to trade only what you see on the price chart and not what you think, you will be on your way to becoming a consistently profitable trader, because trading what you see and not only what you think means that you control yourself, not the market. The key is to consistently trade only what you see, not what you think or feel. This will help you avoid succumbing to the emotions of revenge or greed after a losing or winning trade. Traders who consistently trade only what they see on the price chart and not what they think "might happen," along with effective risk management, are the traders who make money in forex. When you learn how to trade with a high probability of price events while controlling your emotions and risk, you will find yourself in an even better position to make money in the forex market. 🔲 Ask questions before opening a trade Advice on how to ensure that you only trade what you can see, not what you can think. To truly make sure you only trade what you see and not what you think is quite another from simply understanding why you should. Here are some practical suggestions you may use to make sure you only trade what you can see and avoid giving in to emotion. Take the time to consider the following questions before entering into any trade: "Am I doing according to my plan?" "Where is my setup and does it meet the requirement?" "Is the market controlling me?" and "Am I acting logically or emotionally?" "Is it only my imagination, or do you have a bad attitude?". It's a good idea to ask yourself all of these questions before starting any trade. You'll be forced to think through your choices more carefully and decide whether your trade is reasonable or simply motivated by emotion. If you are trading a particular trading strategy, such as price action, make sure that every trade you make is consistent with the concepts you learned in the trading course or study material. Ask yourself any or all of the above questions before every trade you make, until trading only what you see becomes second nature. Eventually, you will develop a sophisticated discretionary trading perspective that allows you to look at the price chart almost instantly and identify price setups. Trading only obvious price action trading setups that are already formed and are not just "possible" setups provides us with a kind of "control and balance" to make sure we are not trading on emotion.
Education
by DeGRAM
10
ELEMENTS OF A TRADING JOURNALA trading journal is an important tool for any trader. It allows you to track your progress and learn from your mistakes. In this blog post, we will discuss the different elements that should be included in a trading journal. These elements include the date and time, the traded instrument, the entry and exit price levels, the position size, and the trade results. Date and Time The date and time when a trade is made is important for a number of reasons. Firstly, it allows you to track your progress as a trader. You can look back at your journal and see how your trades have changed over time. This information can be invaluable in helping you to improve your trading strategy. Secondly, the date and time can be used to help you learn from your mistakes. If you notice that you tend to make losing trades at a certain time of day, or on certain days of the week, you can adjust your strategy accordingly. Finally, the time zone in which the trade is made is important to consider if you are trading in multiple time zones. If you are not aware of the time zone differences, you could end up making trades at the wrong time and missing out on profitable opportunities. Traded Instrument Different types of instruments can be traded on the market, each with their own set of benefits and risks. It is important for traders to understand the instrument they are trading before making any trades. The most common type of instrument traded are stocks. A stock is a share in the ownership of a public company. When you buy a stock, you become a partial owner of the company. The value of stocks can go up or down, depending on a number of factors such as the company's performance, the overall health of the economy, and political factors. Another type of instrument that can be traded are options. An option is a contract that gives the holder the right to buy or sell an underlying asset at a specific price within a certain time period. Options are often used by investors as a way to hedge against losses in the stock market. ETFs, or exchange-traded funds, are another type of instrument that can be traded. ETFs are similar to mutual funds in that they offer diversification and professional management, but they trade like stocks on an exchange. ETFs can be made up of stocks, bonds, commodities, or other assets. Futures contracts are another type of instrument that can be traded. A futures contract is an agreement to buy or sell an underlying asset at a specific price at a specific time in the future. Futures contracts are often used by investors to speculate on the future price movements of an asset. Entry Exit Price Levels Entry and exit price levels are important to track in a trading journal for a number of reasons. Firstly, they allow you to see how well you timed your trades. Secondly, they can help you identify support and resistance levels in the market. Finally, they can be used to help you improve your trading strategy. When it comes to identifying entry and exit price levels, there are a few things that you need to keep in mind. Firstly, you need to make sure that you are using a reliable source of data. secondly, you need to take into account the time frame that you are looking at. And finally, you need to make sure that you are using the correct indicators. There are a few different ways that you can use entry and exit price levels to your advantage. One way is to use them to confirm your trades. Another way is to use them to set stop-loss and take-profit orders. And finally, you can use them to exited positions early if the market turns against you. In conclusion, entry and exit price levels are important elements of a trading journal. They can be used to track your progress as a trader, identify support and resistance levels, and improve your trading strategy. Position Size Position size is an important element of a trading journal. It can be used to track your progress as a trader, identify support and resistance levels, and improve your trading strategy. When identifying position size, it is important to use a reliable source of data, take into account the time frame, and use the correct indicators. Position size can be used to confirm trades, set stop-loss and take-profit orders, and exit positions early. There are a few different methods that can be used to calculate position size. The first method is to use a fixed percentage of your account balance. For example, you could risk 2% of your account balance on each trade. The second method is to use a fixed dollar amount. For example, you could risk $100 on each trade. The third method is to use a fixed number of shares or contracts. For example, you could risk 10 shares or contracts on each trade. The risk and reward potential of different position sizes should also be considered when making trades. A larger position size will have a higher potential profit, but it will also have a higher potential loss. A smaller position size will have a lower potential profit, but it will also have a lower potential loss. There is no right or wrong answer when it comes to position size. It all depends on your individual trading strategy and risk tolerance. Some traders may be willing to risk more money in order to make a larger profit, while others may only be willing to risk a small amount in order to limit their losses. Ultimately, it is up to each individual trader to decide what position size they are comfortable with. Trade Results When it comes to trading, the results of each trade are important. This is because they can show you how much money was made or lost, the percentage return on the trade, and what could have been done better. By looking at the results of your trades, you can learn lessons that will help you improve your trading strategy. One of the most important things to look at when evaluating the results of a trade is the percentage return. This is because it can show you how profitable the trade was. If you are only looking at the dollar amount made or lost, you may not be getting an accurate picture. For example, a trade that made $100 but had a 100% return is more profitable than a trade that made $200 but only had a 50% return. It is also important to look at what could have been done better in each trade. This includes things like entry and exit points, position size, and risk management. By looking at what went wrong in each trade, you can learn from your mistakes and make adjustments to your trading strategy. Finally, it is also important to take into account the lessons learned from each trade. These lessons can be used to improve your trading strategy and make more profitable trades in the future.
OANDA:XAUUSDEducation
by Lingrid
5
4 important trade tips on price actionWhen it comes to trading, there are a few key things you need to keep in mind in order to be successful. In this blog post, we'll cover four important trade tips that focus on price action. By keeping these tips in mind, you'll be better equipped to make profitable trade decisions going forward. №1: Identifying the current market structure The first step to take when trying to identify the current market structure is to examine the overall market trend. This will give you a good idea of whether the market is trending up, down, or sideways. You can use a variety of tools to help you with this, such as trend lines, moving averages, and price action. Once you have a good idea of the overall market trend, you can then start to look for areas of value. These areas could be support or resistance levels, depending on the market trend. For example, if the market is trending downward, you would look for areas where the price has bounced off of support in the past. If the market is trending upward, you would look for areas where the price has bounced off of resistance in the past. It's also important to watch out for price volatility when trying to identify the current market structure. This will help you understand if the market is on the move or consolidating. Price volatility can be caused by a number of factors, such as news events, economic data releases, and even just changes in investor sentiment. Finally, pay attention to chart patterns and breakout levels. These can be important clues for future market direction. Some common chart patterns include head and shoulders, triangles, and double tops/bottoms. №2: Identifying major areas of value In order to identify major areas of value, traders should: 1) First take a look at the overall market trend to get an idea of whether the market is moving up, down, or sideways. 2) Identify potential support and resistance levels. 3) Watch out for price volatility to better understand if the market is on the move or consolidating. 4) Monitor chart patterns and breakout levels, as they can provide important clues for future market direction. №3: Watching for price volatility Price volatility can be defined as sudden changes in prices. These changes can be either up or down, and they often happen very quickly. Price volatility is a normal part of the market, and it happens for a variety of reasons. Some of the most common causes of price volatility include news events, economic data releases, and central bank decisions. One of the most important things that traders need to do is to watch for price volatility. By monitoring price movements, traders can take advantage of market swings to make profits. There are a few different ways to do this. One way is to use technical indicators, such as Bollinger Bands or the Average True Range indicator. Another way is to simply pay attention to price action and look for signs of a potential breakout. When it comes to identifying when the market is volatile, there are a few different things that traders can look for. First, they can look at the overall level of market activity. If there is a lot of activity, it is likely that prices will start to move around more. Second, traders can look at the size of the candlesticks on a price chart. If they are getting bigger or smaller, it could be an indication that prices are starting to move more aggressively. Finally, traders can also listen to news reports and economic data releases for clues about potential market moves. There are a few different techniques that traders can use to monitor price volatility. One way is to set up alerts on their trading platform so that they are notified whenever there is a sudden change in prices. Another way is to check in on the markets regularly throughout the day so that they can spot any potential changes as they happen. №4: Chart patterns and breakout levels One of the most important things for traders to know is how to identify chart patterns and breakout levels. This knowledge can help them take advantage of market swings to make profits. There are many different types of chart patterns that traders can use to their advantage. Some of the most common include head and shoulders, double tops and bottoms, triangles, and flag and pennant patterns. Each of these patterns can give traders clues about future market direction. Head and shoulders patterns, for example, often form at the end of an uptrend and can signal that the market is about to reverse course. Double top and bottom patterns can also be used to predict market reversals. Triangles typically form during periods of consolidation and can be used to trade both breakout and continuation setups. Flag and pennant patterns often form during periods of consolidation and can also be used to trade breakout setups. When it comes to trading breakouts, it is important for traders to wait for multiple confirmations before taking a trade. This means that they should look for other signs that the market is about to move in the direction they are anticipating before entering a trade. Some things traders can look for include a sharp increase in volume, a break above or below key resistance or support levels, or a strong move in price away from the pattern itself. By knowing how to identify chart patterns and breakout levels, traders can take advantage of market swings to make profits. These techniques are some of the most important tools in a trader's toolbox and can help them become more successful in the markets. Conclusion The conclusion of the article should cover the four important trade tips on price action. These tips are designed to help traders make better decisions and maximize their profits. By following these tips, traders will be able to better navigate the market and make more informed decisions that can lead to successful trades. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
11
COMMON TRADER BIASES🔴 Let's talk about the typical biases in trading that many traders experience on a regular basis. These biases are some of the most common ones we encounter in trading, and if you don't recognize them, they may be the cause of your failure in forex. It will be lot simpler for you to deal with them and comprehend why giving in to them can harm your results if you are able to think probabilistically. ▶️ Recency Bias It is a common mental tendency where people tend to focus more on what's happening now, rather than what happened in the past. This is known as a cognitive bias, and it affects traders. People who have had success in the past are more likely to be overconfident in their next trades, expecting things to go their way again. However, each trade is unpredictable and has no connection to the ones that have come before or after it. Knowing this can help you manage your emotions while trading. ▶️ Loss Aversion Bias Some people have a tendency to feel the effects of losses more than they do of wins of equal magnitude. This can often lead to lower performance. Traders are focused only on avoiding losses will miss out on big opportunities for gains and lose their positive edge. Remember each trade is just one data point in a larger distribution. There will be losses. Don't avoid trades out of fear because you can't avoid them - embrace them as part of the process. Don't let past losses make you doubt yourself if you have a positive edge. If you win more when you win than when you lose. The Law of Large Numbers is working in your favor. Instead of thinking about things emotionally, think probabilistically. This means thinking about the likelihood of something happening, rather than just assuming it will happen. This can help you make better decisions and avoid losing trades. ▶️ Confirmation Bias Absorbing information only that supports your views. It is seductive to look on your past conviction favorably because it feels good, but doing so increases the risk of missing crucial information that could help you get your conviction overturned. With objective rules, you can determine whether your advantage is present. Without appropriate rules, you'll start to see only what you want to see. To prevent this bias, it is crucial to have a positive statistical advantage and strict rules to follow. ▶️ Bandwagon Bias In general, this is entering trades that everyone else is in because you don't want to miss out. The latest hottest trade is often referred to as FOMO (Fear of Missing Out). By doing this, you are giving in to your emotions and going along with the crowd rather than following your own well-defined and positive edge. Forget about the others and simply focus on yourself and your competitive advantage. All other information is noise. ✅ Conclusion These biases, as you can see, are of a temporary. Which, as we have discovered, is extremely risky for our trading because it is a long-term game in which we allow our edge to develop gradually. We are aware that in order to succeed in trading, we must take the long view and trust the probability. You will ruin your trading and your trading account if you fall to these biases in the short run. But by becoming aware of them, you can take some action to change your frame of reference in the present and prevent these biases from ruining your trading performance.
Education
by DeGRAM
8
Ready to start trading?If you're thinking about getting into forex trading, then you'll need to take some steps to get started. In this blog post, we'll walk you through seven of the most important things you need to do before you start trading forex. From choosing a broker to building a winning trading strategy, we've got you covered. So read on to find out everything you need to know before getting started in the exciting world of forex trading! Choose a forex broker When you're ready to start trading forex, the first step is to choose a broker. With so many brokers out there, it can be tough to know where to start. Here are a few things to look for in a good forex broker: -Regulation by a major financial institution. This ensures that your broker is held to high standards of financial responsibility. -A demo account. This will allow you to test out the broker's platform and see if it's a good fit for you. -Competitive spreads. This refers to the difference between the bid and ask price of a currency pair. A tight spread means that you can trade at more favorable prices. -Customer service. You should be able to reach customer service easily if you have any questions or problems. Once you've found a broker that meets these criteria, the next step is to open a demo account. This will allow you to get familiar with the broker's platform and try out your trading strategy before putting any real money on the line. Open a demo account Opening a demo account with a forex broker is a straightforward process. You will need to provide some personal information to the broker, such as your name and email address. The broker will then send you an activation link. Once you click on that link, your demo account will be activated. You will be able to choose the amount of money you want to deposit into your demo account. Once you have made your deposit, you will be able to start trading! Build a winning trading strategy Building a winning trading strategy is essential for anyone looking to profit from the forex market. There are a few key steps that all traders should follow in order to increase their chances of success. The first step is to understand the markets. A trader needs to know what drives the prices in the market. The second step is to tailor the trading strategy to the trader's goals and risk tolerance. The third step is to test the trading strategy on historical data. The fourth step is to have a plan for managing trades. The fifth step is to stick to the plan. By following these steps, traders can develop a winning strategy that suits their individual needs and goals. Make your trading calendar A trading calendar is a schedule that outlines the times of day and days of the week when a trader will trade. The purpose of a trading calendar is to help traders plan their trading activities around their other commitments. When deciding what times of day to trade, it is important to consider the following factors: market volatility, liquidity, and spreads. Market volatility is the amount by which the price of a security, currency, or commodity moves up or down. Liquidity is the degree to which an asset can be bought or sold without having a significant impact on the price. Spreads are the difference between the bid and ask prices of a security, currency, or commodity. It is also important to consider how many days of the week to trade. Many traders choose to trade five days a week, as this leaves weekends free for family and other commitments. However, some traders may choose to trade six or seven days a week if they feel they can commit the time required. When choosing currency pairs to trade, it is important to consider which pairs are most liquid and have tight spreads. Liquidity is measured by the volume of trades that take place in a given period of time. The more trades that take place, the more liquid a pair is said to be. Spreads are measured by the difference between the bid and ask prices of a currency pair. The smaller the difference, the tighter the spread. Once you have decided what times of day and how many days per week you will trade, it is time to open a demo account with a broker. A demo account allows you to practice trading with virtual money before you risk any real money. This is an important step, as it allows you to test your trading strategy without risking any capital. Once you have opened a demo account, it is time to backtest your trading strategy. Backtesting involves testing a trading strategy on historical data to see how it would have performed in past market conditions. This is an important step as it allows you to see if your strategy has any potential flaws that could cause problems in live trading conditions. By following these steps, you can create a trading calendar that suits your needs and helps you plan your trading activities around your other commitments Open real account When you're ready to start trading forex for real, the first step is to find a good broker. Most brokers offer a demo account which is a great way to test out their platform and see if it's a good fit for you. Once you have found a broker you like, the next step is to open a real account. To do this, you will need to provide some personal information and documents. After your account is opened, you can start trading! In order to find a reputable forex broker, there are a few things you should look for. First, make sure the broker is registered with the National Futures Association or another regulatory body. Second, check to see if the broker offers a demo account so you can try out their platform before committing to an account. Third, compare the spreads offered by different brokers to make sure you're getting competitive rates. Fourth, read online reviews of the broker to get an idea of their customer service and overall reputation. Once you've found a broker that meets all of these criteria, you can open an account and start trading! Follow the rules of your trading strategy When it comes to trading forex, it is essential that you follow the rules of your trading strategy consistently. This means having a detailed journal or diary of all your trades so that you can review and improve your strategy. Adhering to your risk management rules is also crucial for success. If you don't have a consistent approach to trading, it will be very difficult to profit from the forex market. You may find that you make some good trades but then lose money on others because you didn't stick to your strategy. This is why it is so important to have a well-defined strategy and to follow it religiously. It can be helpful to think of your trading strategy as a set of rules that you must follow in order to be successful. These rules should cover every aspect of your trading, from entry and exit points to risk management. By following these rules consistently, you will increase your chances of making profits in the forex market. Of course, even the best trading strategy will not always result in profits. There will be times when the market moves against you and you make losses. However, if you stick to your strategy and follow the rules, over time you should see more winning trades than losing ones. Keep a trader's diary A trader's diary is a valuable tool that can help you review your performance and spot any patterns or areas that need improvement. To keep a trader's diary, find a comfortable and quiet place to sit down and write. Date each entry, and include the time of day. Be as specific as possible when recording entries, including things like what the market was doing at the time. Also note down your emotions and thoughts while trading. Finally, review your diary periodically to look for any patterns or areas that need improvement. Keeping a trader's diary can be beneficial for a number of reasons. First, it can help you track your progress over time. By looking back at previous entries, you can see how far you've come and what areas you still need to work on. Second, it can help you identify patterns in your trading behavior. For instance, you might notice that you tend to make impulsive decisions when the market is volatile. By being aware of this pattern, you can work on changing it. Third, it can provide valuable insights into your thought process while trading. By reviewing your entries, you might realize that you need to take more time to analyze situations before making decisions. Overall, keeping a trader's diary is a helpful way to reflect on your trades and identify areas for improvement. By taking the time to write down your thoughts and emotions while trading, you can gain valuable insights into your trading behavior. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
12
TWO TAPES OF FOREX TRADINGThe two tapes of forex trading are a recording of your past performance and a recording of your current live performance. Many traders focus on the first tape, which is full of emotions and can be misleading. The second tape is a more accurate representation of your trading skills and should be given more attention. Letting the first tape influence your decisions can lead to suboptimal results. No strategy vs. systematic strategy Some people believe that the best way to trade forex is with no strategy, while others believe that a systematic approach is best. Back-tested data can be used to improve and optimize a trading strategy, but some traders believe that live trading data is more reliable. Journals can help traders learn from their mistakes and improve their trading strategies. A long-term mindset is key to success in forex trading. There are pros and cons to both approaches. Some traders find that a systematic approach helps to take the emotion out of trading and leads to more consistent profits. On the other hand, others believe that no strategy is the best approach, as it allows for more flexibility. Let's explore both sides of the argument in more detail. Systematic approach: Advantages: 1) A systematic approach can help to take the emotion out of trading and lead to more consistent profits. This is because you are following a set of predetermined rules, rather than making decisions based on your emotions. 2) Back-tested data can be used to improve and optimize a trading strategy. This means that you can test out different strategies before implementing them in live trading. 3) Journals can help traders learn from their mistakes and improve their trading strategies. This is because you can track your progress and see which areas need improvement. Disadvantages: 1) A systematic approach can be inflexible, as you are following a set of rules rather than making decisions based on market conditions. This means that you may miss out on profitable opportunities. 2) Back-tested data may not be accurate, as it does not reflect real-world conditions. This means that your strategy may not work as well in live trading as it did in backtesting. 3) Journals can be time-consuming to keep, and you may not always have time to review them properly. This means that you could miss important information about your progress or about areas where you need improvement Back-tested data What is back-testing? Back-testing is the process of using historical data to test a hypothesis or strategy. This can be done with real data from the markets, or simulated data that mimics market conditions. Back-testing is useful for traders because it can help take emotion out of trading decisions, test different market conditions, and fine-tune strategies. There are some drawbacks to back-testing, however. Data accuracy may be an issue, as historical data doesn't always reflect current market conditions. Additionally, back-tested data can sometimes produce false positives, leading traders to believe a strategy is more successful than it actually is. Despite these limitations, back-testing remains a valuable tool for forex traders. Journaling trades Journals can help traders learn from their mistakes, reflect on their emotions during trades, and improve their trading strategies. For example, if a trader made a mistake that led to a loss, they could reflect on that trade in their journal and figure out what they did wrong. This would help them avoid making the same mistake in the future. Similarly, if a trader journaled their emotions during a trade, they might be able to identify certain triggers that led to bad decisions. For example, if they always seem to make impulsive decisions when they're feeling angry, they can then try to avoid trading when they're in that emotional state. Finally, by keeping a journal of their trades, traders can track their progress and see if their trading strategies are actually working. If they find that they're not making as much progress as they'd like, they can then adjust their strategies accordingly. Overall, journals can be incredibly helpful for traders who want to improve their performance. By taking the time to reflect on past trades and track their progress, traders can make more informed decisions and avoid making costly mistakes. Emotionless trading In this section, we'll be discussing the importance of trading objectively, without letting emotions get in the way. We'll also talk about how losses are simply expenses, and not a reflection of personal ability. Finally, we'll stress the importance of having a long-term mindset in forex trading. It's important to remember that forex trading is a business, and should be treated as such. This means that decisions should be made based on what will make the most money, not on emotion. If a trade doesn't go well, it's important to be able to take the loss and move on. Losses are simply expenses, and they happen to everyone. The key is to not let them get in the way of making profitable trades. Another important aspect of forex trading is having a long-term mindset. Many people want to get rich quick, but this simply isn't possible. Successful traders focus on making small, consistent profits over time. This takes discipline and patience, but it is much more likely to lead to success than trying to make a fortune overnight. Long-term mindset Many people enter the world of forex trading with the intention of making a quick profit. However, this is seldom the reality. In order to be successful in forex trading, it is necessary to have a long-term mindset. This means being patient and disciplined, sticking to a trading plan, and not letting emotions get in the way. Here are a few tips for developing and maintaining a long-term mindset: 1. Have realistic expectations Don't expect to make millions of dollars overnight. Forex trading is a marathon, not a sprint. It takes time, patience, and discipline to be successful. 2. Develop a trading plan A trading plan should include your investment goals, risk tolerance, time horizon, and entry and exit points for trades. Having a plan will help you stay on track and make rational decisions when emotions start to take over. 3. Keep a journal A journal can be a helpful tool for reflecting on your trades and learning from your mistakes. Every trader makes mistakes – it's part of the learning process. By keeping a journal, you can identify patterns in your behavior that lead to losses and work on avoiding them in the future. 4. Stick to your plan It can be tempting to deviate from your plan when things are going well or badly. However, it is important to stick to your plan and not let emotions dictate your trades. Doing so will help you stay disciplined and focused on your long-term goals. 5. Take breaks It's important to take breaks from trading from time to time – both mental and physical ones. Staring at charts all day can lead to decision fatigue, which can lead to poor judgement and bad trades. Taking regular breaks will help you refresh your mind and come back with fresh perspective Obsesses with every loss Losses are an inherent part of forex trading. It is essential to accept this fact and use it to your advantage. Every loss presents an opportunity to learn and grow as a trader. By taking the time to journal and reflect on past trades, you can improve your chances of success in the future. obsessing over losses will only lead to more losses in the future. It is crucial to have a long-term mindset if you want to be successful in forex trading. This means having patience, discipline, and emotional control. If you can develop these qualities, you will be well on your way to becoming a successful forex trader. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
11
FOREX MARKET PLAYERSWhen it comes to the forex market, there are a number of different players that play a role in its overall functioning. From central banks and commercial banks to individual investors and brokers, each one plays a part in keeping the market ticking. In this article, we take a closer look at each of these groups and their role in the forex market. Central banks Central banks play a vital role in the foreign exchange market. They are responsible for setting monetary policy, which can have a big impact on the banking system and the economy as a whole. When it comes to setting monetary policy, central banks have two main objectives: ensuring price stability and achieving full employment. In order to achieve these objectives, central banks use a variety of tools, such as interest rates, quantitative easing, and open market operations. The monetary policy set by central banks can have a big impact on the banking system. For example, if central banks raise interest rates, it will become more expensive for banks to borrow money. This can lead to higher lending rates and reduced lending activity, which can in turn slow down economic growth. The economy is also affected by the monetary policy set by central banks. For instance, if interest rates are lowered, it can encourage spending and boost economic growth. On the other hand, if interest rates are raised, it can lead to slower economic growth. Institutional investors Institutional investors are usually large organizations, such as hedge funds or insurance companies, that don't trade frequently. Instead, they have a long-term orientation and are concerned about the overall health of the market. For these investors, the foreign exchange market provides an opportunity to make profits by buying and selling currencies. Most institutional investors use a professional currency trader to buy and sell currencies on their behalf. These traders have access to information and resources that individual investors don't have. They also have the experience and expertise to make informed decisions about when to buy and sell currencies. When institutional investors buy a currency, they are betting that it will appreciate in value relative to other currencies. If their bet pays off, they will make a profit. On the other hand, if the currency depreciates in value, they will incur a loss. The foreign exchange market is risky, but it can be profitable for those who know what they're doing. Institutional investors often have an advantage over individual investors because they have access to more information and resources. They also tend to be more experienced and knowledgeable about the market. Individual investors Individual investors play an important role in the foreign exchange market. They provide the market with much-needed liquidity and can profit from currency movements. Most individual investors are small-scale investors, but there are also large-scale investors, such as hedge funds and insurance companies. The different investment strategies used by individual investors may include buying and holding currencies, day trading, and carrying out technical analysis. Some individual investors choose to buy and hold currencies for the long term. They believe that over time, the currency will appreciate in value. This strategy requires patience and a willingness to accept gradual gains. Other individual investors opt for a more active approach, day trading currencies. This involves buying and selling currencies within the same day in order to take advantage of short-term price movements. Day trading can be a risky strategy, but it can also lead to quick profits. Many individual investors carry out technical analysis when making decisions about when to buy and sell currencies. Technical analysis is a method of predicting future price movements based on past price data. Commercial banks Commercial banks are an important part of the economy. They are responsible for taking deposits from individuals and companies and lending money to borrowers. Commercial banks play a vital role in the economy by acting as a conduit for funds between savers and borrowers. The largest commercial banks in the world are Citigroup, JPMorgan Chase, HSBC, Bank of America and Wells Fargo. These banks have a significant impact on the forex market. They buy and sell currencies on a daily basis in order to facilitate transactions between businesses and consumers. Most commercial banks use professional currency traders to buy and sell currencies on their behalf. These traders have access to information and resources that individual investors don't have. They also have the experience and expertise to make informed decisions about when to buy and sell currencies. When commercial banks buy a currency, they are betting that it will appreciate in value relative to other currencies. If their bet pays off, they will make a profit. On the other hand, if the currency depreciates in value, they will incur a loss. Brokers Most retail brokers in the foreign exchange market are what is called market makers. This means that they essentially act as a middleman between the buyer and seller of a currency pair. For example, if you wanted to buy Euros using US dollars, the broker would find someone who wanted to sell Euros and match you up with them. The broker would then charge a commission on the transaction. Market makers make money by charging a spread, which is the difference between the bid price and the ask price of a currency pair. For example, if the bid price of EUR/USD is 1.20 and the ask price is 1.21, the spread would be 1 pip. Market makers typically add 3-5 pips to the spread in order to make a profit. Another way that some brokers make money is through what is called slippage. Slippage occurs when an order is filled at a worse price than expected due to market conditions. For example, if you placed an order to buy EUR/USD at 1.20 and the market was very volatile, your order might be filled at 1.19 instead. In this case, the broker would keep the 1 pip difference as profit. Some brokers also charge fees for making deposits or withdrawals from your account. These fees can vary depending on the method used (e.g., wire transfer, credit card) and can add up over time if you're frequently making deposits or withdrawals Companies When it comes to foreign exchange, companies have a few different options available to them. They can use foreign exchange to hedge currency risk, speculate on currency movements, or invest in currency as an asset class. Currency ETFs are also an option for companies looking for active currency management. Hedging currency risk is important for companies that have exposure to foreign currencies. For example, a company that exports goods to Europe might want to hedge against the risk of a decline in the value of the Euro. To do this, the company would enter into a currency forward contract. This contract locks in the exchange rate between two currencies for a future date. So, if the value of the Euro does decline, the company's export revenue will not be affected. Speculating on currency movements can be a risky proposition, but it can also be profitable. Companies that speculate on currencies typically use financial instruments like futures contracts or options. These contracts allow them to bet on the direction of a currency's movements without actually having to buy or sell any currency. Of course, if they guess wrong about which way the market will move, they can lose money. Investing in currency as an asset class is another option for companies. This can be done by buying foreign currencies with the intention of holding them for investment purposes. For example, a company might buy Japanese Yen because it expects the Yen to appreciate in value relative to other currencies. If this happens and the company sells its Yen at a higher price than it bought them for, it will make a profit. Currency ETFs are another tool that companies can use for active currency management. These funds trade on exchanges just like stocks and can be bought and sold through brokers. Currency ETFs track baskets of currencies or individualcurrency pairs and can be used to gain exposure to foreign exchange markets without having to trade directly in those markets. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
11
The Five-Step Process For Resolving Any Trading Problem ▶️ There are five steps you can take to fix problems with your trading. First, you need to understand what caused the problem. Second, you need to find a solution. Third, you need to put the solution into action. Fourth, you need to monitor and check the results. Fifth, you need to repeat the process if necessary. 1. Realizing 2. Understanding 3. Embrace 4. Action 5. Consistency 1️⃣ Realizing a trading issue before attempting to solve it is the first step. However, being aware can just mean being able to identify the initial issues with your trading, such as when you are aware that you are trading without using effective risk management. You have the groundwork to build on with this awareness of the issue, so you can proceed to the next phase. 2️⃣ Understanding why you have the problem is the next step after becoming aware of it. Examining it deeply to determine its underlying causes and the reasons behind your behavior. As previously stated, this can be the result of a deep-seated conviction that you don't want to make mistakes or be incorrect. How did you come up with this notion? Perhaps from family; perhaps they reprimanded you for making mistakes? Maybe it dates back to your time in school? Etc. All of this will depend on the trader personally and require some thought and reflection. 3️⃣ The next phase in the process is to embrace them when you have identified their roots and why they occur. In other words, you should acknowledge that these opinions, flaws, or whatever you choose to call them, are a part of you. You can't necessarily get rid of them, but with your improved knowledge and comprehension of them, you will be able to drain their energy. However, once you've accepted them and come to terms with them, you may start taking steps to control them. It results in the following move. 4️⃣ Once the previous steps are finished, you can go on and start putting concrete measures in place to stop them from sabotaging you. You must identify your triggers and when they occur in order to put corrective measures into place. You'll need to learn what triggers your sabotaging behavior and when they happen, and then create a plan to address them. This is where writing can be very helpful, as it will help you track your progress. 5️⃣ Consistency is the process's last phase overall. You must continually monitor your progress and assess if you are following through. You can maintain control by keeping a journal, creating goals, and reviewing frequently. ✔️ Describing the 5 Step Process: 1. Do I know the nature of the issue? 2. Do I understand the root of my problem? 3. Do I admit that I have this issue? 4. Develop a viable plan to stop them. 5. Analyse daily, weekly, and monthly to ensure that I am sticking to my strategy.
Education
by DeGRAM
7
How to choose a broker?Hello everyone! We discuss many different topics in our training articles and today we will touch on a very important topic that everyone avoids. Forex trading is becoming increasingly popular among individual traders due to its immense potential for generating profits. However, with hundreds of different brokers available in the market, it can be quite a daunting task for traders to choose the right one. Choosing the right forex broker can be a crucial factor in your success as a trader. Here are some tips on how to select a suitable forex broker: 1. Look for the Reputation : It is important to conduct thorough research into the different brokers before settling on one. The internet provides a wealth of information on a wide range of brokers. Do not just go for the first broker that you come across but read through customer reviews and opinions to get an understanding of their services. This can be invaluable in assessing their level of reliability and trustworthiness. 2. Analyse Regulatory Framework : Many brokers have obtained authorization from governing bodies in their countries. Before signing up with any broker, make sure to check out the broker’s regulations. In this way, you can rest assured that your money will be safe and secure. 3. Consider Trading Costs : It is essential to find out the fees and charges associated with a particular broker before selecting one. The cost of trading can differ from one broker to another, so make sure to compare the various services to determine which is most cost-effective for your needs. 4. Look for Trade Execution and Trading Platforms : The quality of the trading platform can be another critical factor in selecting a suitable broker. It is advisable to select one that offers an easy to use platform with fast trade execution speeds. Furthermore, check the availability of different trading tools such as charting and analysis options. 5. Check the Quality of Support : It is also necessary to determine the quality of the customer service provided by the broker. Contact the support team directly to assess how helpful and efficient they are in addressing your queries. By following the above tips, you can select the right forex broker and benefit from their services. Investing in forex requires thorough research, understanding, and due diligence in order to increase your chances of success. It is recommended to select a broker that offers competitive spreads and fees, a user-friendly platform, and reliable customer support. Doing so will go a long way towards helping you become a successful forex trader. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
9
GBPUSD - Navigating the current price actionHi traders, GBPUSD is in a multi-scenario area, as the chart is not very clear right now. One scenario is a continuation to the upside from here, another one is a retracement to the bullish area marked on the chart and then a continuation to the upside, and the third one is a deeper correction to the 4h-D trendline. All the scenarios are marked on the chart. Trade with care. Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. We do not recommend making hurried trading decisions. You should always understand the risk that trading implies and that PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Short
by FractalTrading
HOW DOES THE FED PUSH THE MARKET?Hello everyone! Today I want to discuss with you a very important and interesting topic. This topic relates to fundamental analysis and it will be useful to every trader. Let's go! The US Dollar and the whole world As we know, after the Second World War, the dollar became the main reserve currency. The US economy has grown and become the largest on the planet. The impact of the US dollar on the world seems to have no boundaries. All central banks of all countries are forced to hold large amounts of funds in dollars. Because it is the dollar that makes it possible to make monetary transactions between countries without any problems. Thanks to the growing US economy, it is profitable for countries to invest in US bonds and in American companies. Based on the above, the whole world depends on the US Dollar. The Fed and the interest rate The Fed has one of the most important instruments of influence on the economy – the interest rate. The whole world is watching what the Fed decides on the interest rate. Why? Everything is simple. The interest rate is the interest at which loans are issued to banks. If the interest rate is high, it is expensive to take out a loan and therefore there are fewer loans. If the interest rate is low, it is inexpensive to take loans, and therefore companies happily take cheap loans. How does this affect the market? As you know, companies need funds for growth, one of the sources of funds is credit. If the interest rate is low, it is easy for companies to take out loans and direct funds for development – the company is growing. When companies grow, the stock market grows, people invest in stocks, the market grows even more. On the other hand, if the interest rate is high, it is expensive to take out a loan and companies do not grow because of this, people do not invest in them. And where to invest in such moments? In bonds. The lower the interest rate, the higher the yield on the bonds. Remember this. People still need to invest their funds somewhere, and they choose a less dangerous option than stocks, which will help save their funds, and at this moment many choose bonds, the demand for them has lost, the yield is growing. Interest rate data pushes the market, forces huge amounts of funds to flow from bonds to stocks, big banks take loans or vice versa, all this affects the American economy, on which the whole world depends. That is why it is so important to monitor the Fed data, understand how they affect the market and the ability to correctly interpret the data can ultimately bring you a lot of profit. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSD
by Lingrid
18
DOUBLE BOTTOMHello everyone! It's time to repeat the most popular patterns in trading. One of these patterns is a DOUBLE BOTTOM. Forming There are several factors that you should pay attention to. First, a new minimum appears. This breakthrough is accompanied by increased volumes. Such volumes are fixed by the indicator at this point, because there were a lot of stop orders here and the market absorbed them. After this breakdown, the price begins a correction. Nowhere without correction. The correction is usually made to the breakout level, which used to be support, and now is resistance. Having reached the level, the price turns down again. And here is an important point. If this breakdown is strong, then the price should go to update the lows further. In theory, you can open short positions in the rebound area in the hope of continuing the trend. Then we see the formation of the second bottom. One of the main factors that the price will not fall further is the declining volumes. This is a divergence. From this we understand that forces are shifting to the other side and the trend may change. In addition, we see that the price could not gain a foothold below the first bottom, which tells us about the weakness of sellers. results A double bottom is often found on the chart and serves as a signal for closing short positions and possibly opening long positions. With a proper understanding of this pattern, you can get a lot of profit from trading. The main thing is not to forget to monitor volumes, divergence and candlesticks that indicate the strength or weakness of the trend. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
23
THE WAY THE TREND CHANGESHello everyone! We continue our training. Today we will try to figure out how the trend changes its direction. I want to say right away that this is a schematic designation, having understood which, you will be able to identify important zones and structures of trend change. When you understand the principles, then you can make money on it. Accumulation The first area to pay attention to is the accumulation zone. These zones collect large volumes of limit orders on both sides of them, which is liquidity. This liquidity will be eaten up by the market at some point. Breakdown At some point, the price makes a breakdown in one of the sides, thereby eating up liquidity. This breakdown may be a normal continuation of the trend, and in order not to confuse it with a reversal, you need to wait for the next phase. Update After the breakdown, the price turns sharply and updates the minimum of the accumulation zone. What happened here? If the trend had the strength to continue its movement, the price would not have formed a new low After updating the accumulation zone, the price indicated to us a possible trend change. Correction Then we can observe a return to the accumulation zone, but this movement turns out to be weak, and we do not see an update of the maximum of the accumulation zone. At this point, it is possible to consider opening a short position. But if you don't have time to open a position, don't worry, the price will give you another chance. After updating the last minimum, the price is again adjusted to the accumulation zone, but this peak is lower than the previous one. This reversal is a good signal to enter a position. This is how the price behaves when the upward movement is reversed. To reverse a downtrend, the same rules work only in the opposite direction. Conclusions This scheme works perfectly. Using it, you will be able to find excellent entry points and close positions that were opened against the emerging trend. History repeats itself, and you can see it on the graph. Learn how to work with these schemes in order to be able to enter the position in time in the future. Learn, practice and earn.
OANDA:XAUUSDEducation
by Lingrid
13
MARKET CONDITIONS Hello everyone! We continue the series of training articles. Today I want to touch on the topic of MARKET CONDITIONS . Go. What is the market like? As you know, the market does not move only up or only down. The price always makes fluctuations of a wave nature. What does it mean? BEARISH TREND This trend is characterized by the fact that the price updates the previous lows, but cannot update the previous highs. If you look at the monthly chart, such a movement may consist only of falling candles. In fact, if you switch to a smaller timeframe, you can see corrective movements. And this can be observed on all movements. In a bearish trend, it is best to open short positions. A good moment to open a position can be the end of the correction, which confirms that buyers are not able to update the maximum, which means that the downtrend is still strong. RANGE This period of the market is the most boring, because the price is not particularly moving anywhere. In fact, there is an accumulation of large positions. But boring does not mean that it is impossible to make money on it. The simplest trading tactic under such conditions is to sell from the resistance level and buy from the support level. Do not forget to put a stop loss, because sooner or later there will be a breakdown. BULLISH TREND This trend is characterized by an increase in price, an update of the highs and the inability to update the lows. The fact that sellers cannot push the price below the previous minimums tells us that the strength is on the buyers' side. It is best to open long positions and press the updates of the highs. STRUCTURE This structure or model: BEARISH TREND - RANGE - BULLISH TREND, will occur very often. This is exactly how the trend is changing. At first, the price is controlled by one star, it can be bears and then there will be a downtrend, it can be bulls and then there will be an uptrend. At some point, the dominant force loses power over the price, and the opposite one gains momentum, at such moments the range begins. There is a struggle going on here and whoever wins will rule the price. Sometimes it also happens that after the range, the previous trend continues, which means that the opposing force did not have enough power to change the trend, be prepared for this. CONCLUSIONS Do not think that the trend will continue forever. Do not believe that you know the future and the price will go exactly where you predicted. Be objective and study the market. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
13
THE MOST TRADED CURRENCIES IN THE WORLDHello everyone! Today we will touch upon an interesting and important topic of the forex market. There are enough opportunities in the world to trade currencies of all countries, but most of the trade volume is occupied by the main ones. Let's figure out which currencies are traded by traders more than others. US Dollar The most important currency on the planet is the US Dollar. There is nowhere without it: most of the operations on the market take place through the American dollar. In addition, the United States is currently the largest economy on the planet. A huge part of world trade is concentrated in the USA or occurs through the USA. The dollar itself is the reserve currency in the world, central and commercial banks hold large reserves of dollars in their accounts to make international transactions. Yes, Gold, Copper, Oil and much more are valued in dollars. Wherever you look, there is a dollar everywhere and everyone uses it. Because of these factors, the dollar is No. 1 in terms of volumes with an average daily volume of 2.9 trillion US dollars. Euro The second largest trading currency in the world. The main reason is the scale of the economies of the countries that are part of the eurozone. Currently, the eurozone unites 20 countries. Countries such as Germany, France, Italy have quite large economies, in total, together with other European countries, the euro accounts for 20% of world reserves. The average daily volume is almost 1.1 trillion US dollars Japanese Yen Over the past decades, the Asian region has developed strongly. Countries improved and increased production, which eventually led to the fact that Asian countries are now of great importance in the global economy. Japan's manufacturing sector has a strong influence on the world and on the yen. Therefore, when export figures increase, the yen rises. The Japanese yen currently ranks third in terms of trading volumes in the world, with an average daily volume of 554 billion US dollars. Since China is a key competitor of Japan in the industrial goods market, the weakening of the Chinese yuan has a detrimental effect on the yen, because then the export of Chinese goods will become more attractive. In addition to China, the yen is also affected by the price of oil, since Japan is a major importer of this raw material. Pound Sterling The official currency of the United Kingdom and its Territories is the Pound sterling. The economy of the Kingdom is of great importance for the entire world economy, since England is one of the main financial centers of the world. In terms of volume, the pound sterling ranks fourth in the world with an average daily volume of almost 422 billion US dollars. The share of this currency accounts for about 4.5% of world reserves. The main indicator of the strength or weakness of the currency is the UK. The monetary policy of the Bank of England, the GDP of England has a strong influence on the currency. The exit of England from the European Union also had a strong impact. It is the Pound Sterling that closes the four largest volumes of the planet. Then there are such currencies as the Australian dollar, Canadian Dollar, Swiss Franc, Chinese Yuan. All of them in total, of course, lose to the big four listed above, but these currencies also have sufficient volume, which makes it possible to trade pairs with these currencies quite profitably. Volatility Given the volume of a particular currency in the global economy, we can understand which currency pair will have greater volatility and which will not. If you are a trader who wants to make a profit quickly, then the EURUSD pair is suitable for you – the two largest economies in the world. Next comes – USDJPY. The economies of these countries are in first and third place, respectively, which means greater volatility. If you need something in between, then you should pay attention to such currencies as – AUDUSD, USDCAD, NZDUSD. These currencies are linked to the first economy of the world, which will give sufficient volatility, while the second currency in these pairs does not have a huge volume, so price movements will not be so dangerous for a conservative trader. You can also pay attention to pairs where countries with a smaller global volume are involved. Movement in these pairs will be slow and sometimes even boring, but definitely very safe. Conclusion Knowing which currency is strong on the world stage and which is not is very important for choosing a pair for trading. Knowing what affects a particular currency helps to understand the future price movement. Professional traders understand these issues and choose currency pairs suitable for their style. Beginners trade everything in a row. Do not be lazy to study and then the profit will come to you. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
14