Divergence trading is based upon a currency’s action on a chart compared to the movement a major momentum indicator is showing. This can be almost any indicator, the more popular ones being the Moving Average Convergence / Divergence (MACD) and the Relative Strength Indicator. These charts are based upon complex mathematical equations but are automatically [...]
When you are dealing in Forex trading your focus should necessarily be on predicting the directional changes for a pair of currency. Today most of the Forex traders rely on technical analysis for these movements. Today traders often make use of one of the most reliable tools for predicting the movement and this tool is [...]
The Forex market involves buying and selling of different currencies to earn profits. Today major banks, brokers and individuals are involved in Forex dealings. Placing an order in the foreign exchange is very similar to the process in other related markets such as the stock market. Even if you are a first timer you will [...]
Slippage occurs when you think you are purchasing or selling a currency at one exchange rate, but because of market volatility, the trade gets filled at a completely different rate. This is one of the dangers of trading news, because so many people make trades based upon the news, when dealers are overly burdened with [...]
The foreign exchange market is traded in pairs of currency. The major currencies in the market are the U.S. Dollar(USD), the Euro(EUR), the Japanese Yen(JPY), the British Pound(GBP), the Swiss Franc(CHF), the Canadian Dollar(CAD), the Australian dollar(AUS) and the New Zealand Dollar(NZD). The exchange rate is the value of one currency expressed in terms with [...]
The most important factor in successful foreign exchange trading is smart money management. Without smart money management successful foreign exchange trading is impossible. There are simple money management formula that can be followed that will greatly increase your chances of success. If you are trading a strategy which requires using wider stops in order to [...]