Forex markets: an introduction to the use of Japanese candlesticks in forex trading
Japanese candlesticks are a form of plotting price movements on the chart which is far superior to the visual information conveyed by a bar chart. While bar charts concentrate on high and low prices, the candlestick also incorporates the opening and closing prices and gives a visual indication of market sentiment. The technique was originally [...]
Forex markets: A step-by-step guide in using moving averages in forex trading strategy
As we have seen earlier, one of the most commonly used technical indicators in making buy or sell decisions in forex trading is the use of moving averages. We have also seen that there was no significant difference between the use of simple moving averages and exponential moving averages. They both produce the same kind [...]
How to use pivot points, support and resistance in actual Forex trading
Using pivot points as the basis of a Forex trading strategy has been around for a very long time and is now slightly out of fashion. It still remains an effective strategy, easy to understand and to implement and the arithmetic involved is minimal. The pivot level is the level at which the market changes [...]
The Importance of Volume In Technical Analysis For Forex Trading
Though we have said that technical analysis focuses on price and volume, we have said relatively little about the role of volume so far. Volume is simply the number of contracts traded over a given period of time usually one day. The higher the volume, the more active the forex trading. Analysts look at the [...]
How To Use Technical Analysis in Forex Trading
We have already seen that the fundamental principles of technical analysis in forex trading are: – markets discount everything. All of the relevant information is already incorporated in the price and only knowledge of price movements is necessary to successfully predict the future trend of prices. – prices move in patterns or trends. Prices can [...]
Technical Analysis and its use in Forex Trading
We had earlier seen why it is necessary to analyze forex market movements and to use this information to predict future price trends. We have also looked at the first major tool of market analysis known as fundamental analysis. Now we will consider the second major tool which is technical analysis. Technical analysis is the [...]
Forex Markets: Behavioral Finance & the Psychology of Forex Trading
Hank Pruden, who formulated the theory of behavioral finance, says “For the better part of 30 years, the discipline of finance has been under the thrall of the random walkcum efficient market hypothesis. Yet enough anomalies piled up in recent years to crack the dominance of the random walk.” and goes on to add “Behavioral [...]
Money Market ETF’s – A Brief Explanation to Money Market ETF’s
As interest in ETF’s has skyrocketed, issuers have hurried to expand the scope of products to every conceivable asset in the investment universe. Many investors have gone past the stage of regarding ETF’s as a supplement to equities and bonds and have now adopted all ETF portfolios and techniques such as ETF Trend Trading. With [...]
Inverse ETF’s
An exchange trading fund (ETF) sells investors an interest in a pool of securities such as equities, bonds, currencies or commodities, not unlike a mutual fund. Unlike a mutual fund however, an ETF trades like equity on a stock exchange which means it can be bought and sold freely during trading hours, margin trading can [...]
How to Create an All ETF Investment Portfolio…
Because of the zooming popularity of ETF’s, issuers are rushing to create ETF is that incorporate virtually any financial asset that you can think of. Let us recall that ETF’s are baskets of financial assets or securities in which you can buy a share. They have the liquidity and the trading characteristics of equities, lower [...]
