Here we will not only answer the question of whether Japanese candles work and what they mean, but we will give you real-time examples. History and essence of Japanese candlesticks Japanese candles have been used in commercial practice for more than 100 years. This chart was the first, then the bar chart and the line chart were added, but we'll talk about them in another article. The most important thing to remember is that Japanese candlesticks are one of the most powerful weapons in forex trading. If we learn the basic formations from Japanese candles, we will add a significant arsenal to our trading strategy. Forex traders use the chart of Japanese candlesticks to be able to forecast the market both long-term and short-term. Elements of Japanese candlesticks Both bars and Japanese candles show the opening and closing prices, the [...]
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How to properly trade bounce off support and resistance? When it is a good time to open a position when not. After we got acquainted in detail what support and resistance are - we looked at a few examples of where and how they are formed - why they are so important. - how we can determine our take profit when using it. - where and how resistance becomes support and vice versa. - how to combine them with trend lines. - where support and resistance has been broken, and how to take advantage of this price break - how the support and resistance help us determine the trend. It's time to look at bounce from a key area (resistance and support). We call it a zone because the support and resistance are always different from the previous one. But [...]
In this lesson we will look at the following: What is a trend channel, how it works, and how to trade trend channels? How to draw trend channels. What are the different types of trend channels? How to analyze the market with trend channels. Trend channels are one of the most commonly used tools in technical analysis. They are used successfully by many forex traders but before you start using them successfully, first we will have to learn them and understand what a trend channel is and how we can apply it in technical analysis. There are three types of channels used in forex trading., Downtrend channel (the price falls), an uptrend channel (the price rises), and a side trend channel (when the market is consolidating). These are the three types of price channels that are used when analyzing a [...]
We looked at what support and resistance are now it's time to see how to trade them? The time has come to apply what we have learned so far in the previous article. There is no way we can say that support and resistance are more important than divergences or certain indicators. We need to understand that there is no such thing as the most important thing in trading and we need as many indications in our favor in order to open a trade. Still, we must know that support and resistance are very powerful tools. They can help us both to open a position and to close it. Later in the article, we will give you illustrative examples of everything we have talked about so far. We will try in the simplest and most understandable way to show you [...]
To your question what is support and resistance, we can answer as follows. Support and resistance in forex is one of the most used techniques. This is because it is one of the most powerful tools to use in trading. Before we move on to the basics, you need to understand that everyone has their own idea of where and how resistance and support was formed. Strange as it may sound, we will show you examples later in the article. But now we start with information for beginners to forex trading. Unlike most websites and videos on youtube, here we will give you examples drawn on the chart of a particular traded instrument. If we look at the image above we can see the uptrend (bull market) ,the price of the currency pair EURUSD rises. On the chart we have [...]
Trend lines are one of the most common and used techniques in technical analysis in forex trading. We must first answer the question: what are the trend lines, and how can we use them in forex trading? Trend lines can be used both to determine the trend and to identify important trading areas. If we draw them correctly, on the tops and bottoms, we can understand whether a certain tool has an upward trend or a downward trend. In addition to determining the trend, we can use them to determine resistances and supports, but they are not as reliable as like for determining the trend. No matter what strategy you use, trend lines should be present in your trading arsenal. They are very important, of course, when the trader draws them correctly. When they are drawn properly (on the tops [...]
Will Lagarde oppose the rising euro exchange rate and what will be the bank's forecasts for growth and inflation? Christine Lagarde should have been following closely the recent rise in the euro exchange rate. Since the beginning of June, the common European currency has appreciated by about six percent against the US dollar. This is a problem for the central bank: On the one hand, the strength of the euro makes exports from Europe more expensive, which tends to weaken growth - on the other hand, it makes imports cheaper and thus pushes the already low inflation in the euro area even lower down. Although the ECB does not formally pursue any exchange rate targets, Lagarde's predecessor Mario Draghi often commented on the euro exchange rate when he saw cause for concern. (Christine Lagarde euro) In addition to the strong [...]
Trading gold as per triangle formation. Take a look at our charts and find how to trade this forex chart formation. As we can see from the picture, we are looking at the chart of the gold. What we can see is that in the first place we have an uptrend. We have said more than once, the most reliable positions are the one following the trend. Trading Gold Using Triangle We see that the price is trying to break the previous high, but without any success. At this point, we can only wait to see what the graph will show us. We can draw a trend line on the tops and one on the last bottoms. Here we come to the formation itself. Here we want to give you some information about the triangle figure itself. As we see [...]