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Ways to Avoid Losing Money in the Forex Trading Business

Ways to Avoid Losing Money in the Forex Trading Business

When people delve into the business world, they see themselves growing and gaining out of it. It is always about the profits and never about losses in a business-oriented person. However, as much as a person does not want to imagine themselves losing, they happen to at some point in their business venture. Businesses will […]

Are you stranded on whether you should use technical indicators in 2021? This article will help you decide. Reading this article will impart you with the knowledge to win from forex trading effortlessly. It starts by describing the challenges you will likely experience while trying to understand and apply technical indicators. You will then find out the recommended way to simplify technical forex analysis without ignoring core analyses. What is more? Find out below. The Challenges You May Face While Using Technical Indicators You are likely to bump into three main challenges while trying to use technical oscillators and indicators. First, they are too many, making it challenging to decide on the best. Second, you may find it hectic to calculate advanced computations if your Mathematical skills are weak. Thirdly, no technical oscillator is independent. Here is more explanation of the drawbacks. 1. They Are Too Many to Track Once There are core technical indicators with several subdivisions. The root classification has four types of technical indicators. These are the trend, momentum, volume, and volatility indicators. Trend indicators rely on historical data to predict price direction. Momentum indicators show the rate of price change. Volume indicators echo the sold or bought currency quantities. Lastly, volatility indicators tell you the price quantity is changing in a direction. The primary technical indicators further branch in several sub-units such as: • Stochastic oscillator. • Moving average convergence divergence (MACD). • Bollinger bands. • Relative strength index (RSI). • Fibonacci retracement. • On balance volume (OBV). • Ichimoku Kinko Hyo. • Chaikin money flow. • Klinger oscillator. • Average directional index (ADX). You can group the related forex technical indicators into one or two of the four main classifications for easier understanding. But the truth remains that the massive technical indicators number will still overwhelm you. 2. You May Be Unlucky if Your Mathematics Skills Are Poor You may have a hectic time trying to manually calculate and plot the values of the numerous technical indicators. Let us assume you want to determine the Moving Average Convergence Divergence of USDJPY for the forex pair for a duration. You start by understanding and dissecting moving averages into SMA (Simple moving average) and EMA (exponential moving average). Next, you should know how to calculate the averages, explicitly focusing on EMA. After finding EMA, you proceed to grasp major concepts of MACD before using the EMA calculations to compute it. And here is the most frustrating part: 3. Technical Indicators Are Not Independent It may be a hard punch to calculate a technical oscillator then realize you cannot wholly rely on it to make forex trading decisions. For instance, you have to combine trend indicators with momentum indicators to have a fair overview of the forex market. Similarly, calculating momentum indicators force you to understand and calculate trend indicators. A typical scenario is applying MA in finding MACD. Another weakness of the technical indicators is that they may give false signals. Typical examples are stochastic oscillators. They help you determine market overbuying and underselling. However, they give false signals when the market starts to trend. To overcome the false signal drawbacks, you have to track several technical indicators if you don’t want to lose your forex winnings. The above challenges may make you wonder, “Can I gain from forex trading with poor Mathematical and analytical skills?” Yes. Here is the most straightforward way to win from forex trading without struggling. The Solution Is to Rethink Automation Forex trading is no longer a thing for computer scientists or Mathematical gurus. With the surge in technological advancements, all you need is to choose an automated platform and profit from forex trading. The most typical automated forex trading platform is MetaTrader 4. The software enables you to utilize several charts with many technical indicators embedded in them. You can hire a collaborative robot to monitor, calculate and analyze the forex market forces on your behalf. And the best part? They can handle stop-loss and take-profit orders, leaving you assured you will not lose from forex trading. Conclusion If you are tired of forex trading false signals and tiresome calculations, start automating forex trading today. Trading platforms such as mt4 should solve your technical analysis challenges.

3 Drawbacks of Forex Technical Indicators and How to Solve Them

Are you stranded on whether you should use technical indicators in 2021? This article will help you decide. Reading this article will impart you with the knowledge to win from forex trading effortlessly. It starts by describing the challenges you will likely experience while trying to understand and apply technical indicators. You will then find […]

Understanding the Stochastic Technical Oscillator in Forex Trading

Understanding the Stochastic Technical Oscillator in Forex Trading

A stochastic indicator is an excellent tool for determining oversold and overbought conditions within a particular period. Read on to understand more about this oscillator. The stochastic oscillator comes with two lines that are:  The indicator that is defined by %K A signal line that indicates the 3-day SMA (simple moving average) of %K, also […]

Ways on how to Make Money in Forex Without Actually Trading

Ways on how to Make Money in Forex Without Actually Trading

You must have seen forex trading so many times, perhaps as you browse the internet. Is it a real thing?  Are there people who trade forex? How can you make money through forex trading? These are some of the many questions that linger in one’s mind when one thinks of forex trading. They could be […]

What Are the Pros and Cons of ETFs?

What Are the Pros and Cons of ETFs?

There are different sorts of exchange accounts provided by forex traders to their clients. Quite possibly the most significant is an electronically traded fund (ETF). An ETF is a sort of security that includes an assortment of assurance, for example, stocks. While they can progress in quite a few business sectors or utilize a few […]

Using Bollinger Bands and the MACD Strategy

Using Bollinger Bands and the MACD Strategy

Bollinger Bands (BB) provide useful signals during technical trades. If used with the Moving Average Convergence Divergence (MACD) indicator, traders get invaluable insight into the momentum and volatility in the forex market. The Bollinger Band and MACD Combo In this combination, traders use both Bollinger Bands and MACD for supporting trade set ups. Bollinger Bands […]

Top 4 Bollinger Bands Trading Strategies in Forex

Top 4 Bollinger Bands Trading Strategies in Forex

Bollinger Band is a tool used by technical analyzers, and defined by several trendlines that are plotted on a standard positive and negative deviation, away from an SMA (Simple Moving Average) of the price of securities, but is adjustable to a user’s preference. John Bollinger, a technical trader developed and patented the Bollinger Bands. The […]

Reasons Why Forex Brokers Are Important in Forex Trading

Reasons Why Forex Brokers Are Important in Forex Trading

A forex broker is someone or a company that does forex trading on behalf of a forex trader for them to make a profit in the forex market. They are important people are they are skilled in how the forex market prices fluctuate and know when is best to trade and how much to risk […]

Advanced guide for the novice Forex traders

Advanced guide for the novice Forex traders

If people want to get success in the Trading field, they should take this seriously. The newcomers are required to work hard as they have to compete with the big names. They have less knowledge and skills than the professionals. So, the fresher should invest more time to develop himself or herself. If anyone thinks […]

Step by step guide to become a professional investor

Everyone knows trading is one of the most sophisticated business in the world. Being the most sophisticated profession, you have to understand the associated risk factors in trading. According to recent statistics, more than 95% of the retail traders are losing money. So, if you want to succeed in the trading business, it’s obvious you […]