What Are Forex Robots & Do They Work?

what are forex robots and do they work

What are forex robots? Forex robots are trading systems that run automatically according to a built-in trading algorithm. They can analyse different currency pairs on the forex market for potential trading signals and then place trades on behalf of the user when they find a trade that meets the robot’s criteria. The robot can also manage trades, placing stop losses, take profits, trailing stops, break-evens and close the trade on behalf of the user. There are thousands of free and paid forex robots available online. You can download from various sources such as blogs, forums, commercial sites, brokers and more. …READ MORE

What Is The Rounding Bottom Pattern & How To Trade With It

Rounding Bottom Pattern

The Rounding Bottom is a chart pattern that identifies a series of price movements. These price fluctuations appear like an alphabet U. What is the Rounding Bottom pattern? As its name suggests, Rounding Bottoms is a kind of slope that occurs after a long downtrend. The Rounding Bottoms mention that the price is about to reverse. Usually, traders look for the pattern on a weekly or a monthly chart; however, Rounding Bottoms rarely emerge on the chart. The Rounding Bottom signifies that there is a strong supply, making the price decline. After this, the upward movement happens only when the …READ MORE

What Is The Fractal Adaptive Moving Average & How To Trade With It

Fractal Adaptive Moving Averages

The Fractal Adaptive Moving Average or better known as FRAMA, is a technical indicator developed by John Ehlers. The indicator is based on the algorithm that utilizes EMA (exponential moving average) and prevailing price fractals. What is the Fractal Adaptive Moving Average? According to John Ehlers, that market prices are fractal. Fractals are intricate patterns that create continuous shapes. Fractal shapes are almost similar. This means they have similar characteristics. This definition is based on a mathematical principle. John Ehlers stated that if a certain pattern is removed from charts like a 5-minute or a daily chart, a trader may …READ MORE

What Is The Volatility Index & How To Trade With It

Volatility Index

The Volatility Index, or VIX, is a market index that represents the market’s volatility of the next 30 days. It was created by CBOE (Chicago board options exchange) in 1993 for the S&P 500 Index. Since then, the VIX is commonly used as a gauge of U.S. equity market volatility. The VIX provides a measure of market risk and traders’ sentiments. It is also called “Fear Gauge” or “Fear Index.” What is the Volatility Index? Volatility is the measurement of price movements that asset experiences over a certain period. The stronger the price fluctuations, the higher the volatility of an …READ MORE

What Are Support & Resistance Indicators & How To Trade Them

Support and Resistance Indicators

The support and resistance levels can help traders to try and identify the direction of the market by pointing price data. What are Support and Resistance indicators? The support and resistance level indicators are those tools that prevent the price from going in a particular direction. Support levels occur when there is a high demand for a certain asset. When the price starts to decline, it forms a support line.  The resistance level appears when there is an increase in the supply of a specific asset. When the price rises, it creates a resistance line. The support and resistance indicators …READ MORE

What Are Volatility Indicators & How To Trade Them

Volatility Indicators

Volatility indicators are a type of technical analysis tool that are used to try and determine the overall market volatility and for potential exit and entry points into the markets. What are Volatility indicators? Market volatility moves in cycles of highs and lows. Volatility tells traders about the direction of the current market and indicates future price movements. Traders need to look for different kinds of volatility for price movements: They are: Historical volatility – calculated from previous price changes. Future volatility – makes predictions about future movements. Forecast volatility – an overall estimate of future volatility. Implied volatility – …READ MORE

What Are Trend Indicators & How To Trade Them

Trend Indicators

Trend indicators are used to follow the price movements of an asset in a particular direction. Traders will plot them on their charts to try and clearly identify the direction of the market. What are the Trend Indicators? Trend indicators are based on mathematical calculations that illustrate signal lines to identify the market situation. Types of Trend traders There are plethora of trend indicators. Some of the most common are: Moving Averages MACD (moving average convergence divergence) RSI (relative strength index) Stochastics Bollinger Bands OBV (on balance volume) Fibonacci retracements ADX (average directional index) Ichimoku cloud Standard deviation Here’s an …READ MORE

What Are Oscillator Indicators & How To Trade Them

Oscillator Indicators

An oscillator is a type of technical analysis tool that moves between two values. These values, when built on an indicator to measure the strength and weakness of a trend. These types of indicators are also called momentum indicators. What are the Oscillator indicators? Oscillator indicators have specific characteristics. In technical analysis, a trader gauges oscillator usually from 0 to 100.  They mention price fluctuations in overbought or oversold conditions.  When the oscillator’s value reaches upward, it’s an overbought condition, and when the oscillator reaches downwards, it’s an oversold condition. Oversold and overbought conditions are an indication of a possible …READ MORE

What Are Momentum Indicators & How To Trade Them

Momentum Indicators

Momentum indicators are a type of technical indicator that can be used to help try and determine an asset’s price or weakness. What are the Momentum indicators? In Physics, the term Momentum refers to a moving object. Similarly, in financial markets, Momentum is the movement of an asset’s price. It measures upward or downward price fluctuations. Most of the indicators that measure Momentum use specific values to suggest an overbought or oversold condition. When the asset is overbought, this means there is an intense buying pressure and signals a price decline. On the other hand, when the asset is oversold, …READ MORE