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Top Forex Analysis Tools Every Forex Trader Should Have

Whether you are a newbie or a seasoned trader, forex trading and analysis tools come in handy in tackling the challenges of forex trade. Your trading tools should be instrumental in determining your entry and exit points. Forex analysis tools are free and can be assessed in the financial and forex review websites. However, you […]

Who Trades Currencies in The Forex Market?

The forex market is the principal financial market in the world. It’s even bigger than the stocks exchange, and it has a daily remittance of over 6 trillion USD. Market players are in forex markets to speculate against international currencies such as the US Dollar and Euro. Major participants in the forex market mainly are […]

Retracement Trading in Forex Market

Anyone interested in trading the financial markets has heard of the word ‘retrace’ or ‘retracement’ before. However, very few know why price retracements are important or how to take full advantage of them. A retracement in the forex market is easy to define and understand; it is when a price retraces back on a move, […]

The Best Contract for Difference (CFD) Markets to Trade

The Best Contract for Difference (CFD) Markets to Trade

The price for CFDs is obtained from underlying financial assets. These include CFD markets, stock indices, bonds, currency pairs, equities as well as commodities. CFD traders are able to hypothesise on the movement of prices in the asset without buying, selling the underlying asset. Financial organisations used CFDs in the past to supplement flexibility when […]

Technical Analysis vs. Fundamental Analysis

For any aspiring forex trader, one of the first things to embrace is a trading strategy. The strategy you choose to follow should comply with your trading capital, trading style, goals, risk aversion, and method to analyze the money market. Forex traders use two broad approaches to analyze the market.

Identifying the Key Reason behind the Losing Streak

A losing streak is not a rare thing in Forex market. Every trader countenances this. But, investors should try to take the steps which will help them to avoid the losing streak. Without countenancing the winning streak, it is not possible to become successful. You have seen that many investors are always profitable. This is […]

Bollinger Bands and Associated Terms

Bollinger bands are statistical chart envelopes set at standard deviation on top and below a simple moving average used to characterize volatility and prices of a commodity over time. Bollinger bands use period and standard deviation as parameters. The value of the period is 20 and that of the standard deviation is 2 but you […]

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 […]