The amount of money traders deposit largely determines leverage. If they are opening a large trading account, they should use low leverage to reduce risk and maximize profits. Remember that currencies usually move in small percentages, so they may...
Momentum trading involves capitalizing on the strength of market trends. The approach focuses on identifying and trading toward significant price movements fueled by strong buying or selling pressure.
Fundamental analysis is a crucial tool in the arsenal of forex traders, helping them navigate the complexities of the foreign exchange market by assessing the intrinsic value of currencies. This approach involves evaluating economic indicators,...
Long-term trading, also known as position trading, offers several key advantages that appeal to many investors, especially those with patience and a strategic mindset. First, it allows for lower trading frequency, which reduces transaction costs and...
A barrier level, in the context of finance and investment, refers to a specific price threshold or level set for an underlying asset. It acts as a trigger or boundary that, when breached, can activate certain actions or outcomes in financial...
The shooting star candlestick pattern is a bearish reversal pattern often observed in technical analysis. It typically forms at the end of an uptrend and signals potential price declines. Here are its key characteristics:
A regular divergence can help you detect a trend reversal. Short-selling or long-selling are excellent options at this time. The price chart would be ready to fall if the divergence is bearish. The time has come for forex traders to sell. As soon as...
According to two key axioms of technical analysis, prices trend and history repeat themselves. In an upswing, the forces of demand (bulls) are in charge, whereas in a downturn, the forces of supply (bears) are in charge. Prices do not, however,...
A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified asset (such as stocks, commodities, or currencies) at a predetermined price (known as the strike price) within a specified period of...
High liquidity zones are specific areas in a market chart where many buyers and sellers actively participate, creating significant trading activity. These zones are characterized by substantial trading volume, typically around key price levels, which...