Gaps and Gap Analysis

Have you ever wondered what causes gaps in price charts and what they mean? Well, you've come to the right place. Just in case, a gap is an area on a price chart in which there were no trades. Normally this occurs between the close of the market on one day and the next day's open. Lot's of things can cause this, such as an earnings report coming out after the stock market has closed for the day....

Trend Lines

Technical analysis is built on the assumption that prices trend. Trend Lines are an important tool in technical analysis for both trend identification and confirmation. A trend line is a straight line that connects two or more price points and then extends into the future to act as a line of support or resistance. Many of the principles applicable to support and resistance levels can be applied...

Support and Resistance

Support and resistance represent key junctures where the forces of supply and demand meet. In the financial markets, prices are driven by excessive supply (down) and demand (up). Supply is synonymous with bearish, bears and selling. Demand is synonymous with bullish, bulls and buying. These terms are used interchangeably throughout this and other articles. As demand increases, prices advance and...

What Are Charts?

A price chart is a sequence of prices plotted over a specific time frame. In statistical terms, charts are referred to as time series plots. On the chart, the y-axis (vertical axis) represents the price scale and the x-axis (horizontal axis) represents the time scale. Prices are plotted from left to right across the x-axis with the most recent plot being the furthest right. The price plot...

How To Use Barriers To Land Profitable Trades In The Forex Markets

To learn the ways in which traders can determine areas where many barriers are can make a trader a good profit. Many kinds of cost barriers are in the FX market. It is ordinary for currency pairs to change direction at these barriers. When traders learn the ways they can put them together, traders may create a system of trading with higher probabilities of success. A few barriers contain resistances...

The Continued Success Of Forex Currency Trading

Forex trading is an unpredictable market that is followed closely by economists the world over. The forex market is absolutely enormous with some reports indicating that around 2 trillion dollars worth of trading is done daily on it. While it requires some of the best financial minds to predict the movements of currencies on this exchange, a number of average investors have succeeded in making money...

Six Forex Trading Tips for Newbies

You have decided to be a trader in the forex market, and you have no idea on how to begin. Let's first start by defining what the forex market is and what it does.The term "forex", also known as the foreign exchange is a market for the sale and purchase of all kinds of currencies. It originated in the early 1970's when floating currencies and free exchange rates were first introduced. At this time,...

Tips For Trading Forex II

Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.Trade pairs, not currencies - Like any relationship, you have to know both sides. Success or failure in forex trading depends...

Tips For Trading Forex

Tip 1. Gamblers go to casino. All unproved, spontaneous actions in Forex trading — are a part of pure gambling.Any attempt to trade without analysis and studying the market is equal to a game. Game is fun except when you are losing real money...Tip 2. Never invest money into a real Forex account until you practice on a Forex Demo account!Allow at least 2 month for demo trading. Consider this: 90%...

Trade Balance

Definition:Trade balance measures the ratio of exports to imports for a given country's economy. If exports are higher than imports (a trade surplus), the trade balance will be positive. If imports are higher than exports (a trade deficit), the trade balance will be negative.Importance Knowing the exchange rate is obviously critical for any foreign exchange trader, but information on the net exports...

Forex Money Management, Part 1

Best system will fail in long-term if it is without proper . On the contrary, bad system can turn profitable if used with a good money management. Currency trading always go through the cyclical ups and downs, where winning and losing are just part of the game. However, with the right money management, you will ride on satisfying streak of winners and make good profits, while skipping most losses...

How do you make money trading money?

Investors can trade almost any currency in the world. Investors, as individuals, countries, and corporations, may trade in the forex if they have enough financial capital to get started and are astute enough to make money at it. How someone makes money in the forex is a speculative process: you are betting that the value of one currency will increase relative to another.Currencies are traded, and...

Trading Is Timing

Trading always comes down to timing. To truly appreciate this, we simply need to note that one of the biggest gains in stock market history occurred on October 19, 1987, during the day of its greatest crash. On that day, stocks had declined a mind-harrowing 23% by the end of the day, but at around 1:30pm, they staged a massive rally that saw the Dow Jones and S&P indexes verticalize off the bottom,...