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How to Be a Successful Beginner TraderWhen it comes to trading, many people think that it is an easy way to make quick money. However, the reality is that it takes time, effort, and patience to be a successful trader. In this blog post, we will discuss some of the key things that beginners need to do in order to be successful. Set realistic goals Setting realistic goals is important for any beginner trader. Without a plan and actionable steps, it can be easy to get discouraged or become overwhelmed. Trying to make too much money too quickly can also lead to losses. It's important to start small and work your way up. Don't try to go for the big win right away. Set a goal that is achievable and focus on that. Do not strive for perfection. Remember that trading is not a get-rich-quick scheme and you need to be patient in order to be successful. Keep things simple and defined It's important to keep your trading strategy simple and defined. Too many indicators and too many rules can make your strategy too complicated and difficult to follow. Backtesting your strategy on historical data can help you optimize it, but don't over-optimize or you'll risk ruining your strategy. Paper trading is a good way to test your strategy before using real money. When you're just starting out as a trader, it's tempting to try to find the perfect system. You might think that if you just use the right combination of indicators, you'll be able to beat the market. Unfortunately, it's not that easy. There are two problems with trying to find the perfect system. First, the market is constantly changing and what worked yesterday might not work today. Second, even if you do find a system that works, there's a danger of over-optimizing it. Over-optimization is when you keep tweaking your system, trying to get ever-better results. The problem is that when you do this, you're usually just fitting your system to past data. That means it will probably work well in the short term but not in the long term. A better approach is to keep things simple and defined. That way, you're less likely to over-optimize and more likely to be able to adapt as the market changes. One way to keep things simple is to use just a few indicators. It's often better to use fewer indicators that give clear signals than lots of indicators that give conflicting signals. You should also have well-defined rules for entry and exit points so that you know exactly when to buy and sell. Backtesting can help you optimize your strategy by seeing how it would have performed in the past. However, it's important not to over-optimize or you'll end up with a system that only works on paper but not in real life. Once you've got a system that looks promising, paper trade it for a while before using real money. Get a mentor A mentor can play an integral role in your success as a beginner trader. A good mentor will provide guidance and support, help you learn from their own experiences, hold you accountable to your goals, and keep you motivated throughout your journey. Finding a mentor can be tricky, but there are a few avenues you can explore. First, see if any of your friends or family members trade. If they do, ask if they would be willing to mentor you. If not, there are plenty of online resources available, like forums and chat rooms dedicated to trading. LinkedIn is also a great place to look for potential mentors. Once you've found a potential mentor, set up a meeting to get to know them better and see if they're a good fit for you. Be sure to come prepared with questions about their experiences trading and what they think makes someone successful. Also, be sure to let them know what your goals are and what you're hoping to get out of the mentorship relationship. If everything goes well, then congratulations! You've just taken an important step towards becoming a successful trader. Trading is not a get-rich-quick scheme Trading is not a get-rich-quick scheme. You will not become a millionaire overnight. You will have to be patient and handle a few losses along the way. Trading is a long-term game. The key to success in trading is to set realistic goals and take them one step at a time. Trying to make too much money too quickly can lead to losses. Focus on achievable goals, and don't strive for perfection. Remember that trading is a long-term game and you need to be patient to be successful. Another important key to success is to keep everything simple and defined. This has to do with your analysis, trading strategy, and trading plan. Over-optimizing your strategy can lead to ruined results. Backtesting can help you optimize your strategy, but don't over-do it. Paper trading is a good way to test your strategy before using real money. In order to be successful, it is also important to find a mentor who can provide guidance, support, and advice based on their own experiences. A mentor can help you learn from their mistakes so that you don't have to make them yourself. You can find potential mentors through friends and family, online resources. When meeting with a potential mentor, come prepared with questions and let them know your goals. Trading is not a get-rich-quick scheme - it takes time and patience to be successful. By following these tips, you'll be on your way to becoming a successful 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
18
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
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
QML pattern Quasimodo | SMART MONEY CONCEPTHello all. Today we will talk about the reversal pattern "Quasimodo" or QML. Schematically it looks like this: The price moves in the trend, in POI the structure breaks and after that, the price can not update the previous HH and the downward movement continues (consider a schematic example). In this example, after the breakdown of the structure, the price reverses to soften and remove internal liquidity, after which a reversal occurs. This is done in order to close a losing position at the expense of those who put their stop losses behind the maximum of the substructure. There are many names for this pattern, such as three tap setup, but I'm more accustomed to calling it quasimodo. If you like, it's a reworked version of the "head and shoulders" pattern, but in this case you're focusing on the price action instead of the picture. Criteria for QML formation 1. Use it in HTF POI 2. Watch HTF POI 3.Watch the price action. 4. Premium or Discount zone To use the pattern effectively, you must analyze the chart of all TFs. And use the pattern as an entry model. For example, the daily TF is bearish. The price is in the premium zone, as well as on the H1 TF began an uptrend, a full of bullish trend in the lower TF, after which we see that the substructure (red) has changed from a rising to a descending. And thus, we expect a continuation of the downtrend. Important Don't use this pattern in terms of "drawing". They can draw anything on the chart. I recommend to look for POI in POI of higher TFs. An additional factor could be substructure fluctuations before FWG or OB. You need to see how the price behaves after their update. Where to put a stop loss The first option is a stop-loss for a local FVG/OB The second - above swing high of substrucutre Third - above the HTF point of interest, if your RR allows it EXAMPLE After updating the all-time high, the daily structure was broken. Then price consolidated, it was worth waiting for the manipulation. It was possible to enter from HTF POI - aggressive entry, but it was possible to wait for confirmation on the LTF (as I do). I'm expect bullish OF on 4H chart to HTF POI (2D ob) This "entry into position" is shown as an example, so that you can form an understanding of how to act in this or that situation. In conclusion, the more factors you take into account in your analysis, the higher the probability of working out of the pattern. Also, it's up to you to choose what kind of stop loss you will use. There is no right and wrong, everything depends on your strategy and money management. The position was opened after the second liquidity raid in the premium market. I hope it was helpful to you. Thank you for your attention
Education
by Patronofbargain
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
Learn a Triple Top Pattern | Classic Reversal Pattern You Must 🟢What is the Triple Top Pattern? A triple top chart pattern is a bearish reversal chart pattern that is formed after an uptrend. This pattern is formed with three peaks above a support level/neckline. The first peak is formed after a strong uptrend and then retrace back to the neckline. The formation of this pattern is completed when the prices move back to the neckline after forming the third peak. When the prices break through the neckline or the support level after forming three peaks then the bearish trend reversal is confirmed. 🟢Trading the Triple Top There are some rules when trading the Triple Top chart pattern. ✔️Firstly one should identify the market phase whether it is in uptrend or downtrend. As the triple top is formed at the end of an uptrend, the prior trend should be an uptrend. ✔️Traders should spot if three rounding tops are forming. ✔️Traders should only enter the short position when the price breaks out from the support level or the neckline. 🟢Stop Loss In the case of a Triple Top chart pattern, the stop loss should be placed at the third top of the pattern. 🟢Price Target The price target should be equal to the distance between the neckline and the tops, also taking into the account the key levels below. Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
11
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
SPX. The Certainty Trap ‘Never’ &‘always’ have no place in MKTS!Just passing this cool info written by a guy called Ben Carlson. - Ben discusses the differences between probability and certainty: "There are two arguments I see on a regular basis that show up as a result of data overload: …because that’s never happened before. …because that’s what’s always happened before. -The problem with this line of thinking is that it can lead investors to fall into what I like to call the certainty trap. It’s this all-or-nothing line of thinking that causes so many to constantly attach extremes to every single market move or data point they see. The beginning of the recovery or the end of the world is always right around the corner. The assumption is that we’re always either at a top or a bottom when most of the time the markets are probably somewhere in the middle." -The reason the investing certainty trap is so easy to fall for is because historical data can feel so safe and reassuring. Look here, my data says that this has never (always) happened in the past. Surely this trend will continue. I’ll just sit here and wait for my profits to start rolling in. -‘Never’ and ‘always’ have no place in the markets because no one really knows what’s going to happen next. ‘Most of the time’ is a much more reasonable goal, because nothing works forever and always in the markets. If it did everyone would simply invest that way. I think a much more levelheaded approach is to follow the Jason Zweig 10 word investment philosophy: -Anything is possible, and the unexpected is inevitable. Proceed accordingly.
SP:SPXEducation
by samitrading
2
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
BUYERS vs. SELLERSHello everyone! Who are the stronger sellers or buyers right now? The one who finds out the answer will be able to earn a lot. Over time, one side weakens, the other gains strength. It is not easy to catch this moment, but there are several methods for determining a possible change in the dominant force in the market. Japanese candles, namely their bodies, can help us with this. The body shows how strong or weak one or the other side is. The body shows whether buyers are losing strength and whether sellers are gaining strength. Are buyers or sellers strong? By looking at a particular candle and its body, we can understand what was happening in the market in a given period of time. If we see a full-bodied green candle that has no shadows, then we can say with confidence that buyers are winning. The point is that buyers were able to push the price up after the opening and until the closing, which sellers could not resist. On the other hand, if we see a full-bodied candle of red color, we can say that the sellers won. Without much resistance, sellers pushed the price down from the beginning to the end and were able to close at the very bottom of the candle. Full–bodied candles speak of enormous strength, they can appear confirming the trend or starting it, in any case - this is a strong sign. Still strong, but… If you see a green candle with a long body and small, short shadows on the chart, then you can say that buyers dominate the market. But what are these shadows? These shadows remind us that sellers, although losing heavily, still did not give up. It's the same with candles that have long red bodies and short shadows. Sellers are strong, but buyers are still here, as the shadows remind us. Seeing such shadows, you should not be afraid and open positions in the opposite direction, no. It's just a reminder. The fight is getting harder. A candle with a small green body, which is located at the top, shows us that buyers have taken over the market, but the victory turned out to be very difficult. The long shadow under the body indicates to us the rage of the sellers, who dragged the price down for a very long time, but still lost in the end. Maybe it was the last impulse of buyers? This fight was almost on an equal footing, but the victory remained with the buyers. In such situations, you can ask the question - Will there be a U-turn? Red body on top, with a long shadow. The sellers won here, but the buyers fought with dignity. Depending on the context, this figure can serve as a signal of an imminent reversal. After all, sellers were able to push the price very deep, but buyers did not give them a foothold there. The last push? The short body is green, and above it is a long shadow. The victory remained with the buyers, but was it easy? No. Perhaps it was the last rush of buyers, after which there is no strength to fight anymore. Maybe the price will not turn right away, because the buyers have won and they still have strength, but their strength is clearly running out. The same is the case with candles, whose bodies are red, indicating the victory of sellers, but long shadows over the body indicate the strength of buyers. The forces of buyers were able to push the price, but not to fix it. This signal is even more bearish, because the price closed below the opening. Conclusion Each candle is important, but the context is more important. Candles help to get the first signals if you are able to understand them correctly. The shadows of candles are the story of a struggle that usually escapes the eye, but at the same time carries a lot of information. Be careful and don't stop learning. 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
10
GUIDE TO JAPANESE CANDLESHello everyone! Today we will discuss JAPANESE CANDLES! Let's try to understand what they mean and how to use this information in your trading. LET'S GO! Bullish and Bearish PIN BAR A bullish pin bar is a candle with a long shadow, the body of which is located at the top of the candle. Such a candle was formed under the pressure of sellers who were able to push the price down, after which buyers turned on, who pushed the price above the opening and were able to gain a foothold there. This strength of buyers signals to us that sellers are losing dominance in the market and a trend reversal is possible soon. A bearish pin bar has a mirror structure relative to a bullish pin bar. Buyers can't keep the price high, and sellers take up the trend. At these points, we can expect the early completion of the previous impulse and a possible trend change. Bullish and bearish harami Bullish harami consists of two candles: the first is a long full-bodied candle, the second is small with a small body. After a strong downward impulse (the first candle), a sharp reversal begins (the second candle). At the same time, the second candle often opens with a gep. The momentum of the first candle is the last spurt of the market, after which buyers take over the market. The gap in the opening of the second candle and the closing of the first confirms the strength of buyers. Bear harami has a similar structure, but a mirror movement. The last impulse of buyers, was replaced by the gep of sellers. This sign indicates a possible reversal. Bottom and top tweezers These Japanese candles are characterized by two long full-bodied candles. After the first strong impulse, there is a sharp reversal in the opposite direction. This reversal has a huge force, as it is able not only to turn the price against the main trend, but will immediately gain a foothold low. This figure is called tweezers, as the price pierces the level and abruptly returns back. A very strong signal for a reversal. Conclusion These patterns are very popular and useful. The ability to use them correctly in trading can bring significant profits. These patterns help to determine the price reversal, which contributes to a better entry into the position. 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