Author: misamaliraza94
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Trend Lines
Trend lines are probably the most common form of technical analysis in forex trading. They are probably one of the most underutilized ones as well. If drawn correctly, they can be as accurate as any other method. Unfortunately, most forex traders don’t draw them correctly or try to make the line fit the market instead of the other way…
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What is Support and Resistance?
“Support and resistance” is one of the most widely used concepts in trading. Strangely enough, everyone seems to have their own idea of how you should measure support and resistance. Let’s take a look at the basics first. Look at the diagram above. As you can see, this zigzag pattern is making its way up (a…
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3 Types of Forex Charts and How to Read Them
In order to study how the price of a currency pair moves, you need some sort of way to look at its historical and current price behavior. A chart, or more specifically, a price chart, happens to be the first tool that every trader using technical analysis needs to learn. A chart is simply a visual representation of a currency pair’s price…
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Which Type of Analysis for Forex Trading is Best?
Ahhhh, the million-dollar question… Throughout your journey as an aspiring trader, you will find strong advocates for each type of analysis. Whereas technical analysis (TA) involves poring over charts to identify patterns or trends, fundamental analysis (FA) involves poring over economic data reports and news headlines. Hardcore traders in the technical analysis camp scream, “Fundamental analysis doesn’t matter! FU…
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What is Sentiment Analysis?
Sentiment analysis is used to gauge how other traders feel, whether it’s about the overall currency market or about a particular currency pair. Earlier, we said that price action should theoretically reflect all available market information. Unfortunately for us forex traders, it isn’t that simple. The forex markets do not simply reflect all of the information out there…
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What is Fundamental Analysis?
Whereas technical analysis involves poring over charts to identify patterns or trends, fundamental analysis involves poring over economic data reports and news headlines. (And even random tweets from a certain world leader before he was banned.) Fundamental analysis is a way of looking at the forex market by analyzing economic, social, and political forces that may affect currency…
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What is Technical Analysis?
Technical analysis is the framework in which traders study price movement. The theory is that a person can look at historical price movements and determine the current trading conditions and potential price movement. Someone who uses technical analysis is called a technical analyst. Traders who use technical analysis are known as technical traders. The main evidence for using…
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3 Types of Forex Market Analysis
By now you’ve learned some history about the forex, how it works, what affects the prices, blah blah blah. ZZZZZZZZZZZZZ. ? This is all obviously super important, but know that you’re now thinking… BORING! SHOW ME HOW TO MAKE MONEY ALREADY!!!! Well, say no more friends because here is where your journey as a forex trader…
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What is the Forex Broker’s Order Execution Quality?
What is the quality of your broker’s order execution? Order execution is a process of filling the requested buy or sell order of the trader. In the previous lesson, we talked about the prices that forex brokers show you on their trading platforms and whether the prices are fair and accurate. But having fair and accurate pricing…
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Where Does the Forex Broker’s Price Come From?
When trading forex, you are speculating on the future direction of currencies, taking either a long (“buy”) or short (“sell”) position depending on whether you think a currency pair’s exchange rate will go up or down. Specifically, you seek to profit from fluctuations in the exchange rates between currencies, betting on whether one currency’s value, like the Japanese yen, will go…