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What are the most popular currencies to trade?

Foreign exchange is the most liquid product in the world, with an average daily turnover of $3.2 trillion as of 2007 (the last time the Bank of International Settlements released their Triennial FX survey). To put this number into perspective, the amount of turnover in foreign exchange is well over 30 times that of the combined United States equity markets. ... Read More »

What are Chart Patterns?

Patterns are the basic foundation of technical analysis. As prices trace their way across the chart, they create patterns that often resolve themselves in a predictable way. The primary tenet of technical analysis is the repetition of human behavior, which can be tracked as well-categorized geometric patterns on the charts. Therefore, recognizing the patterns early results in an opportunity to ... Read More »

What is Technical Analysis and Why is it Important?

What is Technical Analysis? Technical analysis is the study of historical price action to identify patterns and determine probabilities of future movements through the use of indicators, patterns, and candlestick formations. Technical analysis boils down to identifying trends, and finding significant support and resistance areas. Essentially, markets can only do three things: move up, down, or sideways. Currency pairs typically ... Read More »

What are Technical Indicators?

Technical indicators provide traders with precise measurements of price action by performing a wide variety of mathematical analysis on price. In this chapter, we will focus on several popular technical indicators used in the currency market to gauge both trend and counter-trend conditions. The indicators examined will include Bollinger Bands, RSI, Stochastics, Moving Averages and MACD. Indicators can be divided ... Read More »

What are Double Tops and Double Bottoms?

A double top is a rise in price, followed by a temporary retracement, and then a second rise, which stalls around the same level as the original up leg. This pattern represents a strong resistance level, where an uptrend pauses or reverses. After the completion of the pattern, the price action resembles letter ‘M’. However, if the resistance formed by ... Read More »

What is a Chart and what are The Types of Charts?

What is it? A chart is a graphical representation of historical market prices. The most commonly used chart types in forex trading are bar charts and candlestick charts. Although these two chart types look quite different, they are very similar in the information they provide. Bar and candlestick charts are separated into different timeframes. Each bar or candlesticks represent the ... Read More »

What Are Moving Averages?

What are moving averages? Moving averages calculate the average price of a currency pair in a given period of time. They smooth out price action and are typically used as a tool to determine trend direction. The period of time can be measured in days, hours or minutes. For instance, a moving average that measures the average price over the ... Read More »

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