What Are Moving Averages & How To Trade With Them

Forex Moving Averages Explained

The moving average is one of the most used statistical indicators in forecasting price of trading instruments. In this article, we are going to explore moving averages and their effective use in forex trading. What are the moving averages? Moving average is the average price of an instrument over a period of time. It is shown as line on a chart. The moving average line results from the average price over a certain number of periods. As a rule, the closing price of a respective candlestick is considered. Let’s look at the moving average for 20 periods on a five-minute …READ MORE

How To Avoid Forex Scams

How To Avoid Forex Scams

Unfortunately, there are forex scammers out there who are targeting inexperienced traders with unrealistic promises and outright fraud. Whilst the forex industry gets a bad rep at times due to these unscrupulous scammers, it doesn’t mean that everyone should be tarnished with the same brush. Believe it or not, there are actually honest professionals within the forex industry who have the best intentions of traders at heart. They are being let down significantly by forex scams that bring a shame to the forex industry on a regular basis. In this guide we will take a look at the types of …READ MORE

Keeping A Forex Trading Journal

Keeping A Forex Trading Journal

A forex trading journal is basically when you log all of your trading activity. This can be in the form of hand written notes, in excel or in a word document. Whatever way you decide to log your trading activity, creating and maintaining a forex trading journal can be a very beneficial thing to do. Why do you need a forex trading journal? Learn from your trading mistakes If you are always recording your mistakes, you can take time to reflect on them, understanding why you made them and how you can prevent them from happening again. Sometimes traders will …READ MORE

What Is The Forex Economic Calendar And How To Use It?

What Is The Forex Economic Calendar And How To Use It

When trading forex online, the economic calendar is considered as an important fundamental tool. The purpose is to demonstrate news statistics, and it is simply necessary to focus on it while trading. The economic calendar publishes macroeconomic indicators and announces important events in the world of economics and finance, such as meetings of central banks, economic conferences, summits, and so on. All events are categorized into three types as per their impact: High impact Medium impact Low impact Naturally, the events related to the high impact category are more frequently used. The rest are not always considered as important, and …READ MORE

Forex Chart Types

There are different types of charts used in forex trading and each have their own advantages and disadvantages. The majority of retail forex traders will be familiar with bar charts, line graphs and candlesticks. In addition to these commonly used charts, there are also renko charts which I find can help to filter out some of the noise from other chart types. Forex Line Charts These are the most basic charts you can use that some traders prefer due to their simplicity. They represent only the closing prices over a set period of time. The line is formed by connecting …READ MORE

5 Factors That Influence Spreads When Forex Trading

When trading forex, you will need to pay your forex broker the spread which is the difference between the bid and ask prices of a currency pair. There are many variable factors that can impact the size of the spread including the brokers liquidity, trading volumes, economic data and market sentiment. If there is an imbalance between the buyers and sellers of a currency pair, the spread can widen to reflect this market condition. Generally speaking, the tighter the spread, the less it will cost you to make a trade. Some forex trading strategies like scalping are especially dependent on …READ MORE

Forex Trading With Support And Resistance Levels

Whatever trading strategy you are using, it is important to know where support and resistance levels are on your chart. In this guide, I will look at what support and resistance levels are and why it is imperative to be aware of them and mark them on your charts. What is support and resistance in forex trading? When the Forex market moves up and then starts to turn back down, the highest point that it has reached before the drop down is known as resistance. When the Forex market moves down and then starts to turn back up, the lowest …READ MORE

5 Ways To Improve Your Forex Trading Routine

5 ways to improve your forex trading routine

There are many factors that can count towards helping you become a successful forex trader. Whilst it is a priority to have a good forex trading strategy, there are many other essential things you need to consider in order to increase your chances of having success trading online. Amongst these factors that can have an impact on your over trading performance is having an uncomplicated trading routine in place. In this guide we will look at 5 ways in which you can enhance your trading routine which in turn can increase your efficiency. 1. Avoid over trading Over trading is …READ MORE

How To Create A Good Forex Trading Plan

How to develop a good forex trading plan

Forex traders should make a trading plan and trade accordingly if they are to increase their chances of being a successful trader in the long term. Trading with an established and well thought out plan has many benefits especially when compared to trading without one. Amongst these benefits, a solid trading plan can help prevent you from using inconsistent money management and trading out of negative emotions. Why do you need a forex trading plan? If you are a trader who trades forex online without a plan, it could be considered similar to trying to row a boat with no …READ MORE