What Is Momentum Trading

Momentum Trading

Momentum Trading is an approach that involves buying and selling assets according to the current price trends. The term “momentum” came from Newton’s first law of motion. Newton stated that when an object is in motion, it tends to stay in motion until an external force acts upon it. Applying this law in currency markets, it expresses that when the market is in momentum, it stays that way instead of the reverse. What is Momentum Trading? Like any other trading strategy, the core concept of Momentum Trading is to buy assets that are rising and sell those who are declining. …READ MORE

What Are Harmonic Patterns & How To Trade With Them

Harmonic Patterns

The term “Harmonic” applies in many sectors like physics, music, acoustics, and power. In currency markets, the Harmonic Patterns describe that trends are harmonic in nature, meaning they can be divided into smaller or larger waves to predict the overall trend. What are the Harmonic Patterns? The basic idea of Harmonic trading is that patterns repeat themselves. It brings math into trading by relying on Fibonacci numbers. The Fibonacci is a sequence of numbers that starts with 0 and 1. Other numbers enlarge the sequence by adding the previous two numbers. Like 0 ,1, 1, 2, 3, 5, 8, 13, …READ MORE

What Is The Piercing Candlestick Pattern & How To Trade With It

Piercing Candlestick Pattern

The Piercing Candlestick Pattern consists of two candlesticks. It can indicate a potential reversal from the bearish to a bullish pattern in a downtrend and reversal from bullish to bearish in an uptrend. What is the Piercing Candlestick Pattern? The first candle of the Piercing Pattern is bearish, while the second is the bullish candle. The bearish candle opens high and closes near the low of the bullish candle. The bullish candle closes above the midway of the bearish candle. The Piercing Pattern suggests that the sellers were in control of the trend, but now the buyers have taken charge, …READ MORE

What Is The Double Bottom Candlestick Pattern & How To Trade With It

Double Bottom Candlestick Pattern

The Double Bottom is een as a possible bullish reversal pattern. The pattern appears in a downtrend and can signal the beginning of an uptrend. The Double Bottom looks like the letter W. What is the Double Bottom Candlestick Pattern? The Double Bottom signifies that the price falls to a bottom and rallies its way up before falling again. These two bottoms touch a support level and are similar in width and height. Traders look for the candle next to the Double Bottom to confirm a trend reversal. The pattern describes the battle between the bulls and the bears. At …READ MORE

What Is The Dark Cloud Cover Candlestick Pattern & How To Trade With It

Dark Cloud Cover Candlestick Pattern

The Dark Cloud Cover is a reversal trading pattern that can indicate a  possiblebearish trend. The pattern shows a change in momentum from upside to downside. What is the Dark Cloud Cover Candlestick Pattern? The formation of the Dark Cloud Cover takes place when a bearish candle follows a bullish candle. The bearish candle opens above the close of the bullish candle and closes below the middle of the bullish candle. The candle next to these two candles is a bearish candle, which confirms the pattern’s development. Here’s what the pattern looks like on the chart: The two candles have …READ MORE

What Are Camarilla Pivot Points & How To Trade With Them

Camarilla Pivot Points

The Camarilla Pivot Points provides traders with key support and resistance levels. These levels can be used to help determine entry, stop-loss, and take-profit points. What is the Camarilla Pivot Points? The Camarilla Pivot Points defines a change in market sentiment and the overall trend. It pays heed to high, low, and closing prices between the trading days. Like any form of pivot points, Camarilla was traditionally for equity and futures exchanges. Now, it is used with forex, cryptocurrencies and other markets. Camarilla is often used to find possible support and resistance levels. There are four support and resistance levels …READ MORE

What Is Algorithmic Trading

Algorithimic Trading

Algorithmic Trading is an automated process that uses computer programs and mathematical models for trades execution. In financial markets, an algorithm is a defined set of instructions processed by a computer program to solve trading problems. Algorithmic Trading a.k.a. Algo Trading became popular during the 1970s with an introduction if computerized trading systems. In the book Flash Boys, author Michael Lewis talked about Algorithmic Trading. The book is about the lives if Wall Street traders who introduced electronic trading in the U.S. Originally, Algorithmic Trading was executed by large financial institutions. Nowadays, individuals can develop an Algo to assess the …READ MORE

What Is Quantitative Trading

Quantitative Trading

Quantitative Trading is an approach that relies on mathematical and statistical data to find trading opportunities. The term “Quantitative Trading” gets its name from quantitative analysis. In financial markets, the quantitative analysis provides traders with tools to turn complicated patterns into numerical values used to analyze market movements. Traders who depend on quantitative analysis are known as quant or quant jockeys. Harry Markowitz was the one that applied mathematical models in financial markets. He mentioned it in his doctoral thesis, which was published in the Journal of Finance. What is Quantitative Trading? Price and volume are two common data points …READ MORE

5 of the most traded currencies in the world

5 of the most traded currencies in the world

The forex or foreign exchange market is one of the most popular and liquid markets in the world. Every day, literally trillions of dollars in various denominations are bought and sold by investors. The straightforward nature of the forex market makes it possible for even the most inexperienced of investors to make a quick profit. However, the volatility of the forex market should never be underestimated. Given that currencies of all denominations are traded, the forex market is highly susceptible to a variety of external factors. From social unrest to geopolitical tension and economic uncertainty, currency valuations can fluctuate wildly …READ MORE