Although the New York session and the London session are the main hours when most traders around the world make their investments, the Asian (Tokyo) trading session can give a more extensive range to trade with other currencies
Forex pairs in trading
In Forex, the pairs are between different currencies, the most popular being the EUR/USD pair. These pair moves significantly during the hours where the New York session and the London session overlap.
Trade flows represent the movement of imports and exports of raw material, supplies, and goods between different countries. A trade balance, therefore, is the percentage of what the country export minus the rate of what it imports. Whenever the export rate is larger than the import, it is considered that that country has a strong economy, and the trade balance is positive. It means that more money is entering the country so that the government can improve and grow. This estate is called a trade surplus.
It is a conflict between two or more countries about imports and exports of goods and products. The tools these countries use are from raising the trade tariff of the products they import to creating other trade barriers to prevent the exchange and cut the trade flow between them.
As a trader, you need at least a base on what is happening in the world right now. This information was something that people before the internet and globalisation didn't have. Still, today it is effortless to find out about the different events that are currently affecting the global economy.
Especially if you are day-trading or scalping, an instant news feed can make a huge difference in your trading.
Time is a crucial factor in any trading market. Sometimes values can change in a matter of hours or even minutes. Hence, traders and investors need to have the best information available as soon as they can so they can use it successfully in their investments. Following the global developments is the best way to know how a market is going to react. It provides clues that traders can relate to past events and how they affected the economy, which assets gained or lost value during those times, and what are the logical movements some stocks will make in those scenarios.
Traders and investors in Forex need to manage different tools, charts, and strategies to investigate the likely changes in the market before they happen
Order flow, also known as transaction flown, is a strategy used by some traders where they determine the way the price will move (or "flow") depending on the reasons why people will place, buy or sell orders at specific times.
Yet, so many new traders think that fancy indicators on complex-looking charts are helping them win at this game. Most often, however, the reality is diametrically the opposite.
Learn to Trade Price Action Like a Pro
While straightforward to use, there is a lot of misleading and outright wrong info circulating on the web. To gain the maximum benefits, you must learn and apply the price action techniques correctly.
What is Financial Astrology?
Financial Astrology, also known as Astro-Economics, is a method used to calculate through mathematical psychology the way a market will react on a specific month or date. It is also used in different businesses to know when is the best moment to launch a new product or to open a new store.
CDFs are, in short, negotiable instruments that reflect the movement of the underlying asset and allow you to position yourself without having to take ownership of any raw material. It is worth noting that CFDs enable traders to place themselves short if they think that the price of natural gas is going to drop, and thus continue to benefit from the leverage offered by the broker even in bear markets.
Copper is one of the best known and used metals in the world. Some countries still use this metal in their currency. However, its most common use in the modern world relates to industrial applications of all kinds. After all, copper is one of the best and cheapest electric conductors.
In this article, we will give you the necessary strategies that you should know for trading copper.
In times of crisis, such as now, the currency market and its different types of currencies can be the most precious assets of all the financial and investment markets that exist in the world.
This form of refuge is ideal in crises because they tend to have an inverse relationship with the performance of risky assets such as stocks, which further guarantees the stable value of their currency.
These are the 4 currencies in the FX market that are considered the safest:
Many experts and analysts have come up with many arguments about gold volatility and its falling prices. This argument has woken up the curiosity of many people and has made them ask questions such as; how big is gold on the market? Is gold still valuable? Or maybe, what role does gold play in the financial system?
Therefore, testing is necessary to discover the Forex strategies that work. Vice versa, you can discard those that don't work for you. Even after a lot of experimentation, the market may not go as you thought, and your strategy still studied and analyzed, may not give the expected results.
Generally speaking, the term market sentiment refers to the state of mind of the market during the current trading session. We can compare the sentiment in the market with the mood of the people. It can change quickly for different reasons, as well as various thoughts, feelings and actions.
Therefore, there are trading methods based on sentiment analysis. We can measure market sentiment using several tools, such as sentiment indicators (which we are going to explain later) or by simply observing the movement of the markets. One such tool that many retail Forex traders are using is the IG client sentiment data.
In the current age of trading, we can find many tools and guides to get more profit. One of the most widely used tools are the price graphs to determine the best points for a trade. Many traders are studying the charts by different means, like for example technical or intuitive.
The price behaviour can produce various formations on the charts, such as the popular head & shoulders, triangles, wedges, flags, etc. Among the classical patterns, we can also find the M and W price behaviour, which is very similar to the double tops and double bottoms.
In this article, we will only focus on the W pattern to know how it works and the special moment of a transaction.
What is the “W” pattern?
The W formation is a pattern that in many cases precedes a rise in market prices in an exponential way. At the moments when the lows are reached, high demand to buy the asset can occur. The great explosion in buying bids causes prices to rise abruptly thereafter.
The question is to know how to take advantage of the moment and to remain in a favourable position. For many, it is just a matter of waiting for the right kind of behaviour and then buying.
The TLTROs provide easy lending at low costs to banks within the euro area (the countries that use the euro as their currency). These financial operations are destined to incentive investment in households and loans to non-financial institutes.
The M pattern, or also known as the double-top pattern, is one of the most popular techniques in trading. The reason is its efficiency in transactions of more than 70% if performed correctly. It is difficult not to if you have the right information to execute it successfully and be able to act at the right time.
For many, the pattern is perfect; however, it would be beginners to think that the method is error-free. Everything is possible in the world, even that the techniques fail at certain times. The important thing about this pattern is that it minimizes the possibility of failure and ensures that the loss is not so significant.
What is the “M” formation and how to trade it?
The M pattern is a model for trading market behaviour when a possible abrupt downturn may follow. Two high peaks in the market mark the behaviour that looks like the letter “M” in the trading charts. It is also why it’s known as a double top. The formation usually occurs in a long period of resistance, until it collapses.
The detail with the M pattern is to know how to recognize it in time and be able to have patience and know-how to wait. There are many possible M-patterns to be found along the way, but they are traps that can cause a considerable loss. On a path with downward resistance, you may find many peaks, but they will not be the right ones.
In this piece, we will take a closer look at the Philadelphia Gold and Silver Index.
The oldest of these indices is the Dow Jones Industrial Average index.
In the world of trading cryptosystems or physical assets such as oil, it is always advisable to have tools. Many platforms have diagrams of market behaviour, allowing you to predict market behaviour.
Renko charts are one of the newest options that investors have to decide and stay in the best possible position. Renko charts are diagrams based on blocks or bricks of the famous game Genka. The chart establishes a place on a brick only that base on the money.
The chart shows your initial position, along with the probabilities of rising or falling prices. In this case, you can decide to sell and be in a better place or wait for the next block. The time between each block is very variable and can take hours or even days, so a lot of patience is required.
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