Mean reversion trading is a strategy employed by investors to capitalize on the tendency of financial instruments to revert to their historical average or mean price over time. Traders employing mean reversion strategies often look for assets that...
Currency pairs with high spreads are those that have a significant difference between their bid and ask prices, which can make trading them more expensive. The spread is essentially the cost of trading and is determined by a number of factors,...
Working with Renko charts makes it much easier for a trader to decide whether to enter or exit the market. More than 1,000 candles are drawn on a typical daily chart of the USDEUR pair with a minute period, whereas a similar Renko-graph would display...
In binary option trading, “Call” and “Put” options are the two basic choices a trader can make when predicting the price movement of an underlying asset such as currency pairs, stocks, or commodities. A Call option is chosen when a trader...
Because there is no set expiration date, the majority of CFD trades have an infinite duration. Only when a trade is reversed is it considered closed. As a result, the only way to close a buy trade on 100 silver CFDs is to sell them.
Setting strict loss parameters and adhering to them is the simplest and most effective way to protect your equity through risk management. One popular method is the 2% Rule, which states that you should never risk more than 2% of your account...
Ichimoku Kinko Hyo is a technical indicator in forex that is used to measure momentum as well as support and resistance levels. As a shortened term, it is known as "Ichimoku." Ichimoku is made up of five lines that work together to form an all-in-one...
Ignoring market news or fundamentals can teach traders several valuable lessons about the importance of context and preparation. When a trader relies solely on technical charts without considering news events, they may experience sudden price...
The Dow Theory, formulated by Charles Dow in the late 19th century, serves as one of the fundamental frameworks for analyzing stock market trends. At its core, the theory operates on the principle that market movements reflect the collective actions...
Soft currency is a term used to describe a currency that is not widely accepted or valued in international markets. It typically refers to a currency that is not stable or has limited convertibility. Soft currencies are often associated with...