Despite all the similarities, there is a fundamental difference between the Heiken Ashi charts and the standard charts. To understand this, let’s first look at how Heiken Ashi charts are constructed and then we’ll examine different ways in which they can be applied in trading.
With depth of market data, clients get access to volume and liquidity information and can use it to their advantage. They have an insight into the sentiment of the market with the quantities of volume available at different prices which can often indicate the potential market direction in the future.
Combining Fundamentals with Technicals to Trade the Crosses
In general, only a small percentage of traders can truly enjoy profitable results in Forex trading. Due to this, many investors are seeking for alternative options, such as a company or a broker that offers managed accounts services.
This holds true both in the short and the long term, so, for example, one day, the US Dollar will be the strongest currency while the Euro will be the weakest on the day, and on another day the British Pound may outperform all while the Euro and the US Dollar will fall somewhere in between.
Examples of using technical analysis on the majors to spot opportunities in the crosses
Here, in this article, we expand the idea of analyzing the crosses through the majors and we take a look at some real world examples of how combined technical analysis on major pairs provided a clue for where a particular cross pair will be moving.
Cross pairs are not moving in isolation – Majors and crosses are closely related
Aside from the relationships that exist between some of the major USD pairs, cross currency pairs also have certain relationships to the major pairs and to other crosses.
Below we have prepared a simple list of differences between poor-quality and high-quality brokers that should help you to get a better view of your current broker.
Nevertheless, many trading opportunities exist among both the major and the minor currency pairs.
Rationales cited behind this thinking include arguments like, major pairs are more liquid, easier to trade, less volatile, less unexpected spiking price action, generally better execution (for short-term trading) and so on.
Fundamental analysis basically uses underlying economic factors for both countries to forecast future exchange rates for a currency pair.
In fact, feature-wise unregulated brokers will usually offer more, and may generally look much better than regulated brokers. However, it’s very important to keep a realistic perspective and not get sucked in by these tricks because most of them are designed just to steal your money.
In practice, letting a winner run can many times translate a winner turning into a loser and cutting losers early can, in the end, turn out to be cutting a winner prematurely.
And certainly, those are situations we most utterly wish to avoid.
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